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REGULATION OF THE MINISTER OF INDUSTRY
No. 14/M-IND/PER/2/2012

CONCERNING
PROVISIONS ON ISSUING RECOMMENDATIONS ON THE IMPORT OF USED CAPITAL GOODS

BY THE GRACE OF ALMIGHTY GOD
THE MINISTER OF INDUSTRY OF THE REPUBLIC OF INDONESIA,

Considering:

a. that in the framework of sustainability and development of domestic industry, it is necessary regulation and control for import of used capital goods through the recommendation;

b. that in the framework easy and smooth of the recommendation as intended in paragraph a, it is necessary to set the provisions of the recommendations in the framework of imported used capital goods;

c. that based on the considerations as intended in paragraphs a and b, it is necessary to stipulate Regulation of the Minister of Industry concerning Provisions on Issuing Recommendation on the Import of Used Capital Goods;

In view of:

1. Law No. 5/1984 concerning Industry (Statute Book No. 22/1984, Supplement to Statute Book No. 3274);

2. Government Regulation No. 17/1986 concerning the Authority to Control, Foster and Develop Industry (Statute Book No. 23/1986, Supplement to Statute Book No. 3596);

3. Regulation of the President of the Republic of Indonesia No. 47/2009 concerning the Establishment and Organization of the State Ministries, as amended by Regulation of the President of the Republic of Indonesia No. 76/2011;

4. Regulation of the President of the Republic of Indonesia No. 24/2010 concerning Position, Duties, and Function of the Ministries of State as well as Organizational Structure, Duties and Functions of Echelon I of State Ministries;

5. Decree of the President of the Republic of Indonesia No. 84/M/2009 concerning Establishment of United Indonesia Cabinet II Period 2009-2014 as amended by Decree of the President of the Republic of Indonesia No. 59/P/2011;

6. Regulation of the Minister of Industry No. 105/M-IND/PER/10/2010 concerning Organization and Administration of the Ministry of Industry;

7. Regulation of the Minister of Industry No. 64/M-IND/PER/7/2011 concerning Types of Industry in Fostering of Directorate General and Agency in the Ministry of Industry Environment;

8. Regulation of the Minister of Trade No. 48/M-DAG/PER/12/2011 concerning Provision on the Import of Used Capital Goods;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF INDUSTRY CONCERNING PROVISIONS ON ISSUING RECOMMENDATIONS ON THE IMPORT OF USED CAPITAL GOODS.

Article 1

In this Ministerial Regulation:

1. Reconditioning or manufacturing company is a company that holds an industrial business permit to process used capital goods into end products to be exported or meet orders from domestic direct user companies.

2. Remanufacturing company is a company that already has a business license as remanufacturing Industry (including the KBLI 28 240) to process the used heavy equipment components into final products according to technical specifications equal with new products and guaranteed by the brand owner for the purpose of export and/or fulfill order of domestic direct user companies.

3. Direct User Company is a company that already has a business license to import used capital goods for its own production process or used by the said company for other purposes, not for sale.

4. Used capital goods are goods, machinery, and/or tools that are used as working capital or to produce something, which is suitable to be used, or reconditioned, remanufactured, re-functioned and not scrap.

5. Industrial Business License is a license granted to the industry/company to conduct industrial activities, issued by the competent authority in accordance with statutory provisions.

6. Recommendation is a letter explaining that:

7. Export Development is increasing the ability of industrial companies to export their products.

8. Investment is any form of investment activities by a domestic and/or foreigner investor to do business in the territory of the Republic of Indonesia.

9. The industry relocation is the removal of part or all machinery and equipment from overseas factories into the territory of the Republic of Indonesia to be reused in production activities.

10. Infrastructure development is the construction of a physical system associated with the provision of transportation, water, buildings and other public facilities needed to meet basic human needs are economically and socially.

11. Reconditioning capabilities is remanufacturing company production capacity, including facilities of machinery and equipment in accordance with the appraisal is technically feasible and able to conduct business recovery and repair services and can process used capital goods become final products, including after-sales service capability.

12. Remanufacturing ability is remanufacturing Company production capacity, including facilities of the machinery and equipment in according with result of technical feasibility and able to conduct business recovery and repair services and can process used heavy equipment into final products in accordance with technical specifications equal with new product and guaranteed by brand holders, including after sales service capability.

13. After Sales Service Ability is the ability of the recondition Company or remanufacturing Company to provide:

14. Survey on the capability for recondition and remanufacturing ability of company is the assessment of the ability of the recondition Company and the remanufacturing Company, including after sales service capability.

15. The Director General of UIBTT is Director General of High Technology Base Prime Industry.

16. Directorate/Director for industrial builder is Directorate/Director of Agriculture Machinery and Equipment Industry, Directorate/Director of Electronic and Telematic Industry, Directorate/Director of Maritime, Aerospace and Defense Equipment Industry, and Directorate/Director of Land Transportation Equipment Industry.

Article 2

(1) The Companies who can import used capital goods with Recommendation are:

(2) The recommendation as intended in paragraph a to d shall be further regulated by the Regulation of the Director General of IUBTT.

Article 3

Used capital goods as intended in Article 2 paragraph a, with Heading/HS 84 and 85, paragraphs c, and d must be at a maximum age of 20 (twenty) years, except for the Headings/HS 8471.41.10.00 and 8531.20.00.00 maximum age of 5 (five) years with a minimum specification of Pentium 4 and in the bonded zone.

Article 4

(1) Every recondition Company, remanufacturing Company or direct user company as intended in Article 2 that will import used capital goods is required to have a Recommendation from the Ministry of Industry.

(2) Recommendations as intended in paragraph (1) is given to:

(3) Assessment for recondition ability and remanufacturing ability as intended in paragraphs (2) a and d shall be done by an independent surveyor who has a survey service business license and become a member of IFIA (International Federation of Inspection Agency).

(4) Recommendation as intended in paragraph (2) is issued by:

Article 5

Application for recommendations as intended in Article 4, submitted to the Director for industrial builder or the Director General of IUBTT through the Ministry of Industry Public Service Unit with provisions:

Article 6

Within 5 (five) working days after the receipt of the complete and correct application as intended in Article 5, the Director General of UIBTT or the Director of Industrial Builder issues Recommendation or reject application for Recommendation.

Article 7

Company that does not have a recommendation from the Ministry of Industry, as intended in Article 4 shall be prohibited to get approval to import used capital goods.

Article 8

Directorate of industrial builder do monitoring and evaluation for capabilities of reconditioning company that has obtained Recommendation as intended in Article 4 paragraphs (2) a and d.

Article 9

Provision of technical guidelines for the implementation of the survey of recondition capabilities and manufacturing capability as intended in Article 4 paragraph (3) is regulated by the Director General of IUBTT.

Article 10

This Ministerial Regulation shall come into force from the date of promulgation and ending on December 31, 2013.

For public cognizance, this Ministerial Regulation shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on February 9, 2012
THE MINISTER OF INDUSTRY OF THE REPUBLIC OF INDONESIA
signed,
MOHAMAD S. HIDAYAT