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DECREE OF THE MINISTER OF INDUSTRY DAN TRADE NO. 172/MPP/KEP/5/2001 DATED MAY 17,2001

THE IMPORT OF SECOND-HAND MECHINES AND MACHINE TOOLS

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

a. that to expand the business activities of local reconditioning companies and direct of machines and machine tools, save foreign exchange reserves, and create more job opportunities, it is necessary to regulate the import of second-hand machines and machine tools;

b. that in view of the weak purchasing power of the industries using capital goods and in an effort to encourage the real sector to speed up the economic recovery, machines and machine tools with more affordable prices are badly needed;

c. that for these purposes, it is necessary to issue a decree of the Minister of Industry and Trade;

In view of :

1. Law No.3/1982 on corporate registration requirement (Statute Book of 1982 No.7, Supplement to Statute Book No.3214);

2. Law No.5/1984 on industry (Statute Book of 1982 No.22, Supplement to Statute Book No. 3274);

3. Law No.14/1992 on traffic and land transport (Statute Book of 1992 No. 49, Supplement to Statute Book No. 3480);

4. Law No. 10/1995 on custom affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612); 5. Law No.8/1999 on consumer’s protection (Statute Book of 1999 No. 42, Supplement to Statute Book No.

3821);

6. Government Regulation No.17/1986 on authority to control, nurture and develop industry (Statute Book of 1986 No.23, Supplement to Statute Book No.3330);

7. Government Regulation No.44/1993 on vehicles and motorists (Statute Book of 1993 No.64, Supplement to Statute (Statute Book of 1993 No.64, Supplement to Statute Book No.3530);

8. Government Regulation No.13/1995 on industrial business permits (Statute Book of 1995 No.25, Supplement to Statute Book No.3596);

9. Presidential Decree No.260/1967 on the affirmation of the task and responsibility of the Trade Minister in the foreign trade sector;

10.Presidential Decree No.234/M/2000 on the formation of the Cabinet for the 1999-2004 period;

11.Presidential Decree No.165/2000 on the position, task, function, authority, organizational structure and working system of ministries as has been amended by Presidential Decree No.172/2000;

12.Decree of the Minister of Industry and Trade No.229/MPP/Kep/7/1997 on general provisions in the important sector;

13.Decree of the Minister of Industry and Trade No.230/MPP/Kep/7/1997 on goods subjected to the import regulation as has been several times amended the latest by Decree of the Minister of Industry and Trade No.192/MPP/Kep/6/2000;

14.Decree of the Minister of Industry and Trade No.275/MPP/Kep/6/1999 on motor vehicle industry;

15.Decree on the Minister of Industry and Trade No.276/MPP/Kep/6/1999 on the registration of types and variants of motor vehicles;

16.Decree of the Minister of Industry and Trade No.550/MPP/Kep/10/1999 on importer identification number (API), as has been amended by Decree of the Minister of Industry and Trade No.253/MPP/Kep/7/2000; 17.Decree of the Minister of Industry and Trade No.589/MPP/Kep/10/1999 on the establishment of types of

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18.Decree of the Minister of Industry and Trade No.86/MPP/Kep/3/2001 on the organization and working system of the Ministry of Industry and Trade;

D E C I D E S :

To revoke :

Decree of the Minister of Industry and Trade No.278/MPP/Kep/7/2000 on the import of second-hand machines, machine tools and capital goods.

To stipulate :

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON THE IMPORT OF SECOND-HAND MACHINES AND MACHINE TOOLS

Article 1

Hereinafter referred to as :

1. Industrial business permit shall be a permit issued by the Minister of Industry and Trade or the official delegated by the Minister of Industry and Trade or the other minister as meant in Government Regulation No. 17/1986 or the Head of Capital Investment Coordinating Board.

2. Business permit shall be a permit issued by the Minister or the official delegated by the minister responsible for the transportation, tourism, fishery, plantation, forestry, mining or construction sector.

3. Reconditioning company shall be an industrial company engaged in the restoration, repair and maintenance of second-hand machines and machine tools;

4. Direct users shall be industrial companies as well as transportation, tourism, fishery, plantation, forestry, mining and construction service companies.

5. Second-hand machines and machine tools shall be machines and machine tools that are still in a fit state for using and reconditioning and are not scraps.

6. Road-worthiness test shall be the process of certifying motor vehicles based on technical requirements and the result of a test conducted before the relevant motor vehicles are driven on a road.

7. Surveyor shall be the surveyor that has been accredited or recognized by the Government of the Republic of Indonesian or has been accredited by the country of original where goods are loaded onto a ship.

8. The Minister shall be the Minister of Industry and Trade.

Article 2

(1) Second-hand machines and machine tools shall only be imported by :

a. reconditioning companies that have already held an industrial business permit;

b. direct users that have already held an industrial business permit or business permit for the purpose of production process or own use.

(2) The second-hand machines and machine tools that can be imported by the companies ass referred to in paragraph (1), shall cover headings 82, 84, 85, 86, 87, 88, 89 and 9909, except those that can not be imported as contained in Attachment 1 to this Decree.

(3) The companies as referred to in paragraph (1) that will import second-hand machines and machine tools, shall at least hold :

a. an industrial business permit or reconditioning business permit or transportation service permit or fishery business permit or plantation business permit of forest exploitation permit or mining business permit or construction business permit;

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c. Limited Importer Identification Number (APIT) or General Importer Identification Number (API-U) or Procedure-Importer Identification Number (API-P);

d. Corporate Registration Number (TDT).

(4) The reconditioning companies and direct users that still hold an in-principle permit can only import second-hand machines and machine tools according to their needs to develop their industry.

Article 3

(1) Second-hand cargo motor vehicles that can be imported by the companies as referred to in Article 2 paragraph (1) shall be motor vehicles with a total gross weight GVW) of more than 24 tons under heading 8701.20.000; 8704.23.190; 8704.32.190; 8704.90.190.

(2) The importation of second-hand cargo motor vehicles as referred to in paragraph (1) shall obtain prior import approval from the Director General of Foreign Trade.

(3) Before being imported, the type of second-hand cargo motor vehicle as referred to in paragraph (2) shall be registered with the Directorate General of Metal, Machinery, Electronic and Farious Industries, Ministry of Industry and Trade, by filling in the registration form as contained in Attachment II to this Decree, complete with the documents as referred to in Article 2 paragraph (3).

(4) The second-hand cargo motor vehicles as referred to in paragraph (2) shall be subjected to a road-worthiness test conducted by the Directorate General of Land Transportation, Ministry of Transportation and Telecommunications.

Article 4

(1) Second-hand cargo motor vehicle as referred to in Article 3 paragraph (1) that can be imported by reconditioning companies as referred to in Article 2 paragraph (1) letter a shall be a minimum of 5 (five) years old and a maximum of 8 (eight) years old starting form the production year.

(2) Second-hand cargo motor vehicles as referred to in Article 3 paragraph (1) that can be imported by direct users as referred to in Article 2 paragraph (1) letter b shall be a minimum of 3 (three) years old and a maximum of 5 (five) years old starting from the production year.

Article 5

The import of second-hand machines and machine tools as referred to in Article 2 paragraph (2) other than motor vehicles by the companies as referred to in Article 2 paragraph (1) shall obtain prior import approval from the Director of Import by attaching the requirements as referred to in Article 2 paragraph (3) to the application form.

Article 6

(1) The import of second-hand machines and machine tools as referred to in Article 2 paragraph (2) shall be accompanied by a Certificate of Inspection starting that the goods

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(3) The survey conducted by the surveyor to issue a certificate of inspection can take place in the country of origin where goods are loaded onto a ship or the country where the goods are unloaded.

Article 7

Second-hand machines and machine tools that are not allowed to be imported in Attachment I to this Decree can be imported with approval from the Director General of Foreign Trade in the name of the Minister, provided that they are.

a. in the interest of the Government and other state agencies; b. for the purpose of technological research and development;

c. motor vehicles owned by Indonesia ambassadors whose term of office abroad has expired.

Article 8

The import of second-had machines and machine tools for other purpose than those referred to in the Article 7 can only be done with prior approval from the minister or the official appointed by the Minister.

Article 9

The import of second-hand machines and machine tools as referred to in Article 7 shall not be subjected to the requirements as referred to in Article 2 paragraph (3) and Article 3 paragraph (3).

Article 10

The importer or companies violating provision in this Decree shall be liable to the following sanction :

a. having their Importer Identification Number (API) or Limited Importer Identification Number (AOIT) revoked;

b. penalty within the framework of the existing law.

Article 11

With this Decree taking effect :

1. Instruction of the Minister of Industry and Trade No.1165/MPP/12/2000 shall be declared null and void; 2. Permits to import second-hand machines, machine tools and capital good that have been issued Decrees of

the Minister of Industry and Trade No.129/MPP/Kep/4/2000 and No.278/MPP/Kep/7/2000 shall remain valid until the expiry date of the permits, provided that they do not contradict this Decree.

Article 12

Matters that have not been provided for in this Decree shall be further stipulated by the Director General of Foreign Trade.

Article 13

This Decree shall begin to take effect on the date of stipulation.

For public cognizance, this Decree shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta On May 17, 2001

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sgd.

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ATTACHMENT I

SECOND-HAND MACHINES AND MACHINE TOOLS NOT ALLOWED TO BE IMPORTED NO. HEADINGS DESCRIPTION OF GOODS SPECIFICATION

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 8201 8203 8212 8213 8215 8408 8414.51.000 8414.59.100 8415 8418 8427 8429 8450.11.100 8450.12.100 8450.19.100 8450.10.000 8509 8510 8516.31.000 8516.32.000 8516.33.000 8516.40.000 8517.11.000 8517.19.000 8518 8519 8520

Hand tools, spades, shovels, mattocks, picks, hoes, axes and the like

Files, rasps, pliers, pincers, tweezers, pipe-cutters, bolt croppers and similar tools

Razors and razor blades

Scissors, tailors, shears and similar scissors and blades for scissors

Spoons,forks,ladles,skimmers,cake-servers,fich-knives,butter-knives,sugar tongs, and similar kitchen or tableware

Compression-ignition internal combustion piston engines (diesel or semi-diesel engines.

Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor

Air conditioning machines

Refrigerators, freezers and other refrigerating or freezing equipment

Fox-lift truck; other work trucks fitted with lifting or handing equipment

Self-propelled bulldozers, angledozers, graders, levelers, scrapers, mechanical, shovels, excavators, hovel loader

tampling machines and road rollers

Household washing machines

Ballasts, for discharge lamps for tubes

Electro-mechanical domestic appliances with self-contained electric motor

Shavers, hair clippers and hair-removing appliances, with self-contained electric motor

Hair dryers

Other hair-drying apparatus Hand-drying apparatus Electric smoothing irons

Line telephone sets with cordless handsets

Microphones, laud-speakers and parts thereof

Turntables (record-decks) record-players, cassette-players, and other sound reproducing apparatus Magnetic tape recorders and other sound recording apparatus, whether or not incorporating a sound

Of all types and sizes

Of all types and sizes

Of all types and sizes Of all types and sizes

Of all types and sizes

For stationary engines and ship maximum 100 HP

Of an output not exceeding 125 W Of all types and sizes Of all types and sizes

Fox-lift of a capacity of 2 to 5 tons

Bulldozers with a capacity of 110 ton 220 HP, grader engines with a capacity of 100 to 150 HP, road rollers with a capacity of 2.5 to 12 tons, excavators with a capacity a capacity of 150 to 250 HP

Of all types and sizes

Of all types and sizes Of all types and sizes

Of all types and sizes

Of all types and sizes Of all types and sizes Of all types and sizes For household use of a capacity not exceeding 500 W

Of all types and sizes

Of all types and sizes Of all types and sizes

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24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39 40. 41. 42. 43. 44. 45. 46. 47. 48. 8521 8527 8528 8534.00.000 8536 8537 8540 8544 8546 8701.10.100 8701.10.200 8701.10.900 8701.20.000 8701.90.000 8702 8703 8704 8705.90.000 8706.00.000 8707 8708.10.000 8708.21.000 8708.29.000 8708.31.000 8708.39.000 8708.80.000 8708.91.000 8708.92.000 8708.93.000 8708.94.000 8708.99.100 8708.99.900 8711 8712 8714 9009 reproducing device

Video recording or reproducing apparatus, whether or not incorporating a video tuner

Reception apparatus for telephony, radio-telegraphy or radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock.

Television and video projectors Printed circuits

Fuses for a voltage not television picture tubes Electric panels

Colour, black and white television picture tubes C a b l e

Electrical insulators

Hand tractors, designed for agricultural use, single axle, one or two wheeled, equipped with one or more forward and reverse transmission, fitted with power take off (PTO) for rotary movement

Other hand tractors, designed for agricultural use, single axle, one or two wheeled

Other hand tractors Semi-trailer tractors

Other tractors

Passenger motor vehicles for public transport

Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading No.87.02), including station wagons and racing cars.

Motor vehicles for the transport of goods

Storing cars that can function as breakdown lorries and/or crane lorries and/or mobile workshops

Chassis fitted with engines, for the motor vehicles of heading No.87.01 to 87.05

Bodies (including cabs), for the motor vehicles of heading No. 87.01 to 87.05

Parts and accessories of the motor vehicles

Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars

Bicycles and other cycles (including delivery tricycles), not motorized

Parts of motorcycles and cycles Colour photo-copying machines

Of all types and sizes

Of all types and sizes

Of all types and sizes Of all types and sizes Of all types and sizes Of all types and sizes Of all types and sizes Of all types and sizes Of all types and sizes Of all types and sizes

Of all types and sizes

Of all types and sizes With g.v.w. not exceeding 24 tones Agricultural tractors with power not exceeding 90 HP Of all types and sizes Of all types and sizes

Trucks with g.v.w. not exceeding 24 tones Of all types and sizes

With g.v.w. not exceeding 24 tones. Of all types and sizes

Of all types and sizes

Of all types and sizes

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THE MINISTER OF INDUSTRY AND TRADE sgd.

LUHUT B.PANJAITAN.

ATTACHMENT II

FORM FOR THE REGISTRATION OF TYPES OF SECOND-HAND VEHICLES

I. DATA ON COMPANY

1. Name of Company : 2. Address of Applicants/Office of Company : 3. Taxpayer Code Number (NPWP) : 4. No. & Date of Business permit/SIUP : 5. API/APIT :

6. Corporate Register No. :

II. TECHNICAL SPECIFICATIONS

1. M a r k : 2. Type/Model : 3. Type of Vehicles : 4. Production Year : 5. Country of Import Origin : 6. Chassis No. : 7. Engine No. : 8. Engine Data : 9. Cylinder Capacity : 10. Dimension

- Length (mm) : - Width (mm) : - Height (mm) : - Wheel Axle Distance (mm) : 11. G.V.W. (kg) :

12. Type of Transmission : Automatic/Manual *) 13. Steering Wheel System : Right

III. THE NUMBER OF VEHICLES IMPORTED

Name & Signature of Applicant

(...)

THE MINISTER OF INDUSTRY AND TRADE Sgd.

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