DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES NO. 1693 K/34/MEM/2001 DATED JUNE 22, 2001
FABRICATION OF LUBRICANT AND PROCESSING OF
USED LUBRICANT AS WELL AS STIPULATION OF LUBRICANT QUALITY
THE MINISTER OF ENERGY AND MINERAL RESOURCES
Considering :
that in order to implement Presidential Decree No. 21/2001 regarding Lubricant Supply and Service, it is deemed necessary to issue provisions on fabrication of lubricant and processing of used lubricant as well as stipulation of lubricant quality in a decree of the Minister of Energy and Mineral Resources;
In view of :
1. Law No. 44 Prp/1960 (Statute Book of 1960 No. 133, Supplement to Statute Book No. 2070); 2. Law No. 8/1971;
3. Law No. 23/1997 (Statute Book of 1997 No. 68, Supplement to Statute Book No. 3699); 4. Presidential Decree No. 234/2000 dated August 23, 2000;
5. Presidential Decree No. 21/2001 dated February 14, 2001;
6. Decree of the Minister of Mining and Energy No. 0223 K/34/M.PE/1991 dated February 13, 1991;
7. Decrees of the Minister of Mining and Energy No. 019 K/34/M.PE/1998 dated January 12, 1998 and No. 1748 K/34/M.PE/1999 dated December 30, 1999;
8. Decree of the Minister of Energy and Mineral Resources No. 150/2001 dated March 2, 2001;
DECIDES :
To stipulate :
THE DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES ON FABRICATION OF LUBRICANT AND PROCESSING OF USED LUBRICANT AS WELL AS STIPULATION OF LUBRICANT QUALITY.
CHAPTER I
GENERAL PROVISIONS
Article 1
What is meant in this decree by :
1. Lubricant, fabrication of lubricant (blending), processing of used lubricant, basic lubricant, company and minister is as mentioned in Article 1 of Presidential Decree No. 21/2001
2. Used lubricant is lubricant that has been used before and/or do not fulfil determined specifications and/or qualities.
3. Lubricant Registration Number (NPT) is a number given by the Director General for lubricant under trade name of lubricant, registered after fulfilling the requirements determined therefor.
4. Trade name of lubricant is the trademark of a lubricant completed with identity regarding classification of quality and the conditions written on the package and/or certificate of quality or documents of lubricant. 5. Lubricant General List is a list issued by the Directorate General regarding NPT containing trade name of
7. Lubricant package is a media with certain size, used for placing lubricant, completed with lubricant's identity, amongst others, classification regarding quality and viscosity, company name, batch number, NPT, and usage purpose, which shall be attached and/or written on the said package.
8. Testing Laboratory is a laboratory, which has the technical ability and experts to evaluate the quality of lubricant, and has obtained accreditation from authorized institution.
9. Director General is the Director General, whose field of duty and responsibility consists of oil and natural gas business activities.
10. Directorate General is the Directorate General, whose field of duty and responsibility consists of oil and natural gas.
CHAPTER II
FABRICATION OF LUBRICANT AND PROCESSING OF USED LUBRICANT
Article 2
(1) Prior to obtaining business license from the minister responsible in the field of industry to establish factory and to fabricate lubricant (blending) and/or to process used lubricant, the company shall in advance obtain written considerations from the Minister.
(2) In order to obtain the said written consideration specified in paragraph (1), the company shall file an application to the Minister, completed with administrative and technical data, with a copy furnished to the minister responsible in the field of industry.
(3) The said administrative data, as specified in paragraph (2), consists of : a. Deed of establishment of the company;
b. Company profile and performance;
c. Written information regarding business feasibility;
d. Commercial Business License (SIUP), Commercial Registration Permit (TDP); e. Certificate regarding Commercial Registration Permit;
f. Domicile certificate;
g. A written statement regarding financial capability.
(4) The said technical data, as specified in paragraph (2), consists of :
a. Sources of basic, additive lubricant and/or raw materials in the form of used lubricant; b. Type and quality of lubricant or basic lubricant produced;
c. Technological process used;
d. A written statement regarding technical capability;
e. A written statement regarding capability of the products in fulfilling quality standards determined by the Minister of fulfilling internationally-accepted quality;
f. A written statement regarding the capability to fulfil safety and work safety aspects and environmental management;
g. A written undertaking regarding the capability to complete other licenses concerning with factory facilities and infrastructure, issued by authorized institution within 6 months since date of receipt of the said written considerations;
h. A written undertaking regarding the ability to settle establishment of the factory and to provide factory facilities and infrastructure within 3 years for fabrication of lubricant and/or within 5 years for processing of used lubricant since date of receipt of the said written considerations.
(5) The provisions of paragraphs (1) to (4) shall also be enforceable for packaging companies.
(1) The minister shall evaluate the said administrative and technical data as specified in Article 2 paragraphs (3) and (4).
(2) The Director General shall, within 30 working days since date of receipt of complete and correct application, finish the said evaluation mentioned in paragraph (1).
(3) An evaluation team shall be established in order to conduct the said evaluation mentioned in paragraph (2).
Article 4
Based on the results of evaluation specified in Article 3, the minister shall provide written considerations to the company with copies furnished to the minister responsible in the field of industry.
Article 5
The company, in fabricating lubricant (blending), shall give priority to the use of raw materials in the form of basic lubricant, which is produced locally.
Article 6
(1) A company bearing license to fabricate lubricant (blending) may provide fabrication service to other companies, which have obtained NPT.
(2) Prior to providing fabrication service, as specified in paragraph (1), the said company shall inform the Minister and the minister responsible in the field of industry.
(3) The said information as specified in paragraph (2) shall contain completeness of data furnished by users of service, amongst others, company name, NPT, commercial name, type and total lubricant used.
Article 7
(1) The company, in processing used lubricant, shall use environmental technology, amongst others hydro-treating and/or extracting.
(2) Companies processing used lubricant, shall utilize and use used lubricant locally.
Article 8
The company, in packaging lubricant, shall prioritize the use of local-fabricated lubricant.
CHAPTER III
CLASSIFICATION AND STIPULATION OF QUALITY
Article 9
(1) Classification of lubricant produced, distributed, and/or marketed locally shall be determined as the one specified in Schedule I to this decree.
(2) The said lubricant specified in paragraph (1) shall fulfil the quality determined by the Director General. (3) Should the quality of lubricant, as specified in paragraph (2) has not been decided, the company shall fulfil
the quality in compliance with internationally-accepted conditions.
Article 10
QUALITY DEVELOPMENT AND SUPERVISION
Article 11
Lubricant, which will be distributed and/or marketed locally shall possess NPT issued by the Director General.
Article 12
(1) The company shall file an application for the registration of lubricant to the Minister, in this case the Director General, in order to obtain NPT as mentioned in Article 11.
(2) The provisions regarding compulsory registration of lubricant, as specified in paragraph (1), shall be based upon Decree of the Minister of Mining and Energy No. 019 K/34/M.PE/1998 dated January 12, 1998 regarding Compulsory Registration of Local Lubricant..
Article 13
The company shall withdraw lubricant, which do not possess NPT.
Article 14
(1) The Director General shall implement development and supervision over quality of basic lubricant and lubricant circulated and/or marketed locally.
(2) In order to implement supervision over distribution and/or marketing of lubricant, as specified in paragraph (1), the Director General may establish Coordinating Team for Lubricant Supervision.
Article 15
In fabricating (blending) of lubricant, processing of used lubricant and/or packaging of lubricant, the company shall give priority to the local use of goods and services.
Article 16
(1) Holders of license for fabrication of lubricant (blending), processing of used lubricant and/or packaging of lubricant shall report their activities every beginning of the year to the minister responsible in the field of industry, with a copy furnished to the minister, in this case the Director General.
(2) Companies fabricating lubricant (blending), processing of used lubricant and/or packaging of lubricant, shall report the implementation of their activities once in every 3 months to the minister responsible in the field of industry, with a copy furnished to the minister, in this case the Director General.
Article 17
Companies or individuals who conduct :
a. Activities of fabricating lubricant (blending), processing of used lubricant and/or packaging of lubricant without any license to conduct the foregoing;
b. Activities of distributing and/or marketing lubricant without fulfilling any conditions, as stipulated in this decree, shall be subject to the sanctions contained in the prevailing laws.
CHAPTER V
TRANSITIONAL PROVISIONS
Companies, which have obtained license to fabricate lubricant (blending), process used lubricant and/or package lubricant prior to issuance of this decree, shall adjust themselves with this decree not later than 1 year since the date of stipulation.
Article 19
Further provisions required for the implementation of this decree shall be stipulated by the Director General.
CHAPTER VI CLOSING PROVISIONS
Article 20
(1) This decree supersedes Regulation of the Minister of Mining and Energy No. 05 P/34/M.PE/1988 dated September 1, 1998 regarding Procedures for the Supply and Service of Lubricant, and the utilization of Used Lubricants.
(2) All enforcement regulations of the Regulation of the Minister of Mining and Energy No. 05 P/34/M.PE/1988 dated September 1, 1998 shall still be applicable as long as they do not contravene with and/or have not been amended by the provisions of this decree.
Article 21
This decree comes into full effect as of the date of stipulation.
Stipulated in Jakarta On June 22, 2001
THE MINISTER OF ENERGI AND MINERAL RESOURCES sgd.
