PROVISIONS AND PROCEDURES FOR THE ISSUANCE OF REGISTRATION IDENTITY OF AGENTS OR DISTRIBUTORS OF GOODS AND/OR SERVICES (Regulation of the Minister of Trade No. 11/M-DAG/PER/3/2006 dated March 29, 2006) BY GRACE OF GOD THE ALMIGHTY, ‘THE MINISTER OF TRADE OF ‘THE REPUBLIC OF INDONESIA, Considering: 2, that the globalization and free market era provides ‘equal opportunity for business communities to par- ticipate in the marketing of goods and/or services in a bid ty create 2 conducive business climate; b. that since control over the orderly and smooth distri- bution of goods and/or services through agents and/ or distributors is directed to provide protection for consumers as well as legal certainty and business certainty, provisions and procedures for the Issuance of registration Identity of agents or distributors of 9000s and/or services; ‘c. that based on the considerations as meant in letters a and b, itis necessary to issue a regulation of the Minister of Trade; Ih view of: 1, Trade Ordinance of 1934 (Statute Book of 1938 No, 86); 2. Law No, 1/1967 on Foreign Tavestment (Statute Book (of 1967 No. 1, Supplement to Statute Book No. 2818) 28 already amended by Law No, 11/1970 (Statute Book of 1970 No. 47, Supplement to Statute Book No, 2943); 3. Law-No, 6/1958 on Domestic Investment (Statute Book of 1968 No. 1. Supplement to Statute Book No. 2853); 4. Law No, 3/1982 on Corporate Registry (Statute Book of 1982 No. 7, Supplement to Statute Book No. 3214); 5. Law No. 1/1995 on Limited Liability Companies (Stat- Business News 7360/12-5-2006 lute Book of 1995 No. 13, Supplement to Statute Book No, 3587); 6. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 72, Supplement to Statute Book No. 3612); 7. Law No, 5/1999 concerning Prohibition on Monopo- listic Practices and Unfair Business Competition (Stat- ute Book uf 1999 No. 33, Supplement to Statute Book No. 3817); 8. Law No, 8/1999 on Consumer Protection (Statute Book of 1999 No. 42, Supplement to Statute Book No, 3823}; ©, Law No, 15/2001 on iMark (Statute Book of 2001 No. 1110, Supplement to Statute Book No. 4131); 10.Law No. 32/2004 on Regional Administration (Stat- tte Book of 2004 No. 125, Supplement to Statute Book No, 4437); 111,Government Regulation No, 36/1977 on Termination of Foreign Business Activities in the Trade Sector (Statute Book af 1977 No. 60, Supplement to Stat- tte Book No. 3113) as already amended several times and the latest by Government Regulation No. 15/ 1998 (Statute Book of 1998 No. 25, Supplement to Statute Book No, 3734); 12,Presidential Decree No. 96/2000 on Business Lines Closed and Opened for Investments on the Basis of Certain Requirements as already amended by Presi erie! Decree No. 118/M/2000; 13.Decree of the Minister of Trade No, 66/Kp/II1/1973 on Authorized Sole Agency of Imported Fertilizers; 14.Decree of the Minister of Trade No, 382/.p/XII/1977 ‘concerning,‘concerning Technical Provisions on Termination of Foreign Business Activities in the Trade Sector; 15.Decree of the Minister of Trade No. 77/Kp/II1/1978 ‘concerning Provisions on Limited Trading Activities For Production Companies in the framework of capi- tal investments 16,Decree of the Minister of Industry and Trade No. 230/ (MPP/Kep/7/1997 on Goods subjected to import con trol as already amended by Decree of the Minister of Industry and Trade No. 406/MPP/Kep/6/2004; {7-Regulation of the Minister of Tade No. 01/M-DAG/ PER/3/2005 on the Organization and Working Ar- rangement of the Ministry of Trade as already amended by Regulation of the Minister of Trade No. 30/M-DAG/PER/12/2005; ‘18 Regulation of the Minister of Trade No. 09/M-DAG/ PER/3/2006 on Provisions and Procedures for the 15 suance of Trading Business License; 19.Regulation of the Minister of Trade No. 10/M-DAG/ PER/3/2006 on Provisions and Procedures for the Ts~ suance of Business License of Foreign Trading Com- panies; DECIDES: To stipulate : ‘THE REGULATION OF THE MINISTER OF TRADE ON PROVISIONS AND PROCEDURES FOR THE ISSUANCE OF REGISTRATION IDENTITY OF AGENTS OR DIS- ‘TRIBUTORS OF GOODS AND/OR SERVICES CHAPTER GENERAL PROVISION Article 1 Referred to in this regulation as: Principal Is individual or business entity in the form of statutory body or nen statutory tody abroad or in the country that appoints agents or distributors to sell goods and/or services owned/controlled. The Business News 7360/12-5-2006 SA 3 principal is distinguished into producer principal and supplier principal. Producer Principal is individual or business entity in the form of statutory bady or non statutory body, having status as the producer which appoints other business entities as agent, sole agent, distributor oF sole distributor to sell goods resiltiig from the production of the principal and/or services owned/ contralled. Supplier Principal is individual or business entity in the form of statutory bedy or nan statutory body ‘appointed by producer principal to appoint other business entity as agent, sole agent, distributor or sole distributor in accordance with the authority del- egated by the producer principal, t. Agent is a national trading company acting as me= diator to act for and on behalf of the principal on the basis of agreement to undertake marketing with- ‘out transferring rights to physic of goods and/or services owned/controlled by the appointing princi- pal. . Distributor is a national trading company acting for and on behaif of the company on the basis of an agreement to purchase, store, sell as well as mar~ ket goods and/or services owned/controtied. . Exclusive Right is a special right granted by princi pal to national trading company as sole agent or ‘sole distributor. 7. Sole Agent is a national trading company securing {an exclusive right from principal on the basis of an agreement as the only agent in Indonesia in cer~ taln marketing area. . Sole Distributor is a national trading company se~ curing an exclusive right from principal on the basis of an agreement as the only distributor in Indane- sla in certain marketing area. 2. Sub-AGENE aeSub-Agent is a national trading company acting as ‘mediator for and on behalf of principal on the basis of appointment or agreement from agent or sole agent to undertake the marketing 10.Sub-distributor is a national trading company acting as mediator for and on behalf of the company on the basis of appointment or agreement from distributor or sole distributor to undertake the marketing. 11.Goods are every thing tangible or intangible, mov- able or immovable, consumable or non consumable, which can be traded, used or utilized by consumers oF business communities, 12,Service s every service in the form of work or achieve- ‘ment and traded in the society for utilizing by con ‘sumers or business communities, which constitutes part inseparable from agency/distributorship of goods already registered. 13,Reglstration Identity, hereinafter called STP, is evi- dence that the company has been registered as agent, sole agent, sub-agent, distributor, sole dis- tributor or sub distributor of goods andor services {issued by the Director of Business Development and. Corporate Registration, Ministry of Trade. 14.Certificate from the Trading Attache of the Republic of Indonesia or Official of Representative of the Re- Public of Indonesia is a certificate regarding data about produces/supplier principal minimally contain- ing name of company, date of establishment, mode! of statutory body, addresses of head office and branch office as well a5 business line, which is issued by the Trading Attache of the Republic of Indonesia or Official of Representative of the Republic of Indone- sia in principal countries. 15.Minister is the Minister in charge of trading affairs. CHAPTER IL REGISTRATION AND AUTHORITY Part One Registration Business News 7360/12-5-2006 6A Article 2 (1)Every national trading company making agreement with principal of goods or services produced abroad or in the country as agent, sole agent, distributor or sole distributor must be registered at the Ministry of Trade for securing STP. (2)Agents, sole agents, distributors or sole distributors already securing STP as meant in paragraph (1) can appoint sub agents or sub distributors. (3)The appointed sub-agents or sub-distributors as meant in paragraph (2) must be ragistered at the Ministry of Trade for securing STP. Part Two Authority Article 3 (1) The Minister is authorized to regulate registration of agency or distributors. (2)The Minister delegates authority to register agency or distributor to the Director General of Domestic Trade. (3)The Director General of, Domestic Trade delegates the authority as meant in paragraph (2) to the Di rector of Business Development and Corporate Reg- istration. CHAPTER IIT ‘APPOINTMENT OF AGENT, SOLE AGENT, DISTRIBUTOR AND SOLE DISTRIBUTOR Atticle 4 ‘The appointment of agents, sole agents, dis- tributors or sole distributors can be realized by: a. producer principal; supplier principal on the basis of approval from pro- ducer principal; . foreign investment companies operating in the ad- ing field as distributors/viholesalers; |. representative offices of foreign trade companies. ticle