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ELUCIDATION ON
REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
NUMBER 100 OF 2012

CONCERNING
AMENDMENT TO GOVERNMENT REGULATION NUMBER 2 OF 2011 CONCERNING SPECIAL ECONOMIC ZONES MANAGEMENT

I. GENERAL

Government Regulation Number 2 of 2011 concerning Special Economic Zones governs on the KEK proposal, KEK determination, KEK development, KEK management, and KEK management evaluation in the framework to accelerate the development of the national economy through the KEK development which has geo-strategic and geo-economy advantages prepared to maximize activities of export processing, logistics, industry, technology development, tourism, energy, and other economics that have high economic value.

In the framework to provide facilitation in the Special Economic Zones proposal that can be proposed by the Business Entity, regency/municipality government, province government, or ministry/non ministerial government agencies, all proposal documents must be clear to the proposal maker so they can be complemented in accordance with the provisions of regulations.

The zone has been determined as Special Economic Zone should be developed by the proposal maker that the implementation of development is conducted by developer Business Entity that is determined by regency/municipality government, province government, or ministry/non ministerial government agency.

In case of the proposal maker is a Business Entity, the development of Special Economic Zone is implemented by the proposal maker Business Entity that is determined by the province government in case of the Special Economic Zone location is across the regions of regencies/municipalities or regency/municipality government in case of Special Economic Zone location is in a regency/municipality.

For the development of Special Economic Zone is proposed regency/municipality government, province government, or ministry/non ministerial government agency, the determination of developer Business Entity is made through an open and transparent principles, in accordance with provisions of regulations in the procurement of government goods/services or the provisions of on the partnership between government with the private sector.

Implementation of Special Economic Zone management is based on the agreement between the management Business Entity with regency/municipality government, province government, or ministry/non ministerial government agency. In case of Special Economic Zone is determined based on proposal of Business Entity, the scope of the Special Economic Zone management agreement between the Business Entity with the regency/municipality government, province government, or ministry/non ministerial government agency is more simple and does not need to contain the termination provision of the agreement, the responsibility to property of the state/region, and transferring assets or infrastructure.

Based on the above considerations, it is necessary to amend some provisions of the Government Regulation Number 2 of 2011 concerning Special Economic Zones Management.

II. ARTICLE BY ARTICLE

Article I

Number 1

Article 12

Paragraph (1)

Self-explanatory.

Paragraph (2)

Letter a

Self-explanatory.

Letter b

Self-explanatory.

Letter c

Self-explanatory.

Letter d

Self-explanatory.

Letter e

Self-explanatory.

Letter f

Self-explanatory.

Letter g

What is meant by "detail location map" is a map that includes delineation (the limits of a zone), the size of zone, and can show the proposed KEK location access.

Letter h

What is meant by "zoning regulation" is regulation governing land use requirements and provision of control and prepared for each zone designation that zone determination is conducted in detailed spatial plan. Detailed spatial plan is a plan to develop Special Economic Zones.

Letter i

Self-explanatory.

Letter j

Self-explanatory.

Letter k

Self-explanatory.

Letter l

Self-explanatory.

Letter m

Self-explanatory.

Letter n

Self-explanatory.

Number 2

Self-explanatory.

Number 3

Self-explanatory.

Number 4

Self-explanatory.

Number 5

Self-explanatory.

Number 6

Self-explanatory.

Number 7

Self-explanatory.

Number 8

Self-explanatory.

Number 9

Self-explanatory.

Number 10

Article 49

Paragraph (1)

Self-explanatory.

Paragraph (2)

Letter a

Self-explanatory.

Letter b

Self-explanatory.

Letter c

Self-explanatory.

Letter d

Self-explanatory.

Letter e

Self-explanatory.

Letter f

What is meant by "in certain cases" such as:

a. Business Entity does not meet the service performance standard;

b. Business Entity is declared bankrupt;

c. Business Entity doing activities that deviate from business license and other license are granted;

d. Business Entity applied for discharge as KEK operator Business Entity; and/or

e. revocation KEK determination by the Government.

Letter g

What is meant by "KEK operational management" in this provision is such as increasing the human resource capacity, improvement of the system, and improving the equipment quality.

Letter h

Self-explanatory.

Letter i

Self-explanatory.

Letter j

Self-explanatory.

Letter k

Self-explanatory.

Paragraph (3)

Self-explanatory.

Number 11

Article 52

Paragraph (1)

Self-explanatory.

Paragraph (2)

Letter a

Self-explanatory.

Letter b

Self-explanatory.

Letter c

Number 1

Self-explanatory.

Number 2

What is meant by "KEK operational management" in this provision is such as increasing the human resource capacity, improvement of the system, and improving the equipment quality.

Number 3

Self-explanatory.

Paragraph (3)

Self-explanatory.

Paragraph (3a)

Self-explanatory.

Paragraph (4)

Self-explanatory.

Number 12

Self-explanatory.

Number 13

Self-explanatory.

Article II

Self-explanatory.

SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NUMBER 5371