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REGULATION OF THE MINISTER OF TRADE OF THE REPUBLIC INDONESIA NUMBER 48/M-DAG/PER/12/2011 CONCERNING PROVISIONS ON IMPORT OF NON NEW CAPITAL GOODS WITH THE BLESSING OF GOD THE ALMIGHTY THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA, Considering: a. that in order to develop investment, increased capacity, efficiency and productivity of domestic industries and job creation needs to be done towards providing capital goods that can be reached by industry sector; b. that the availability of non new capital goods is not required for the needs of industrial production processes up to date cant be derived entirely from sources within the country, so it needs to be additional procurement from sources abroad; c. based on the considerations referred to in letters a and b, need to continue the policies on imports of Non New Capital Goods; d. based on the considerations as meant in letter a, b, and c, it is necessary to stipulate Regulation of the Minister of Trade; in view of: 1. The Trade Ordinance of 1934 (Staatsblad Year 1938 Number 86); 2. Law No. 3 Year 1982 on Corporate Registry (State Gazette of the Republic of Indonesia Year 1982 Number 7, Supplement to State Gazette of the Republic of Indonesia Number 3214); 3. Law Number 5 Year 1984 regarding Industry (State Gazette of the Republic of Indonesia Year 1984 Number 22, Additional State Gazette Republic of Indonesia Number 3274); 4. Law Number 10 Year 1995 regarding Customs Affairs (State Gazette of the Republic of Indonesia Year 1995 Number 75, Additional State Gazette Republic of Indonesia Number 3612) as amended by Act No. 17 of 2006 (State Gazette of the Republic of Indonesia Year 2006 Number 93, Supplement Republic of Indonesia Number 4661); 5. Law Number 36 Year 2000 regarding Stipulation of Government Regulation in Lieu of Law Number 1 Year 2000 on Free Trade Zone and Free Port Becoming Law (State Gazette of the Republic of Indonesia Year 2000 Number 251, Republic of Indonesia State Gazette Number 4053) as amended by Act No. 44 of 2007 (State Gazette of the Republic of Indonesia Year 2007 Number 130, Additional State Gazette of the Republic of Indonesia Number 4775);

UNOFFICIAL TRANSLATION 6. Law Number 25 Year 2007 regarding Investment (State Gazette of the

Republic of Indonesia Year 2007 Number 67, Additional State Gazette Republic of Indonesia Number 4724); 7. Law Number 39 Year 2008 regarding the Ministry of State (State Gazette of the Republic of Indonesia Year 2008 Number 166, Republic of Indonesia State Gazette Number 4916); 8. Law Number 25 of 2009 on Public Service (State Gazette of the Republic of Indonesia Year 2009 Number 112, Additional State Gazette of the Republic of Indonesia Number 5038); 9. Law Number 32 Year 2009 on the Protection and Environmental Management (State Gazette of the Republic of Indonesia Year 2009 Number 140, Additional State Gazette of the Republic of Indonesia Number 5059); 10. Government Regulation Number 17 Year 1986 on Regulating, Development, and Industrial Development (State Gazette of the Republic of Indonesia Year 1986 Number 23, Additional State Gazette of the Republic of Indonesia Number 3330); 11. Government Regulation Number 13 Year 1995 regarding Industrial Business License (State Gazette of the Republic of Indonesia Year 1995 Number 25, Additional State Gazette of the Republic of Indonesia Number 3596); 12. Government Regulation Number 33 Year 2007 on Ionizing Radiation Safety and Security of Radioactive Sources (State Gazette of the Republic of Indonesia Year 2007 Number 74, Supplement to State Gazette of the Republic of Indonesia Number 4730); 13. Government Regulation Number 29 Year 2008 on Licensing of Use of Ionizing Radiation and Nuclear Materials (State Gazette of the Republic of Indonesia Year 2008 Number 54, Additional State Gazette of the Republic of Indonesia Number 4739); 14. Presidential Decree No. 260 of 1967 regarding Affirmation of Duties and Responsibilities of the Minister of Trade in Foreign Trade; 15. Presidential Decree Number 84 / M Year 2009 regarding United Indonesia Cabinet Formation II, as amended by Presidential Decree No. 59 / P Year 2011; 16. Presidential Regulation Number 47 Year 2009 on the Establishment and Organization of the Ministry of State, as amended by Presidential Regulation Number 76 Year 2011; 17. Presidential Regulation Number 24 Year 2010 regarding Position, Task, and the Ministry of State Functions and Organizational Structure, Duties and Functions of Echelon I of State Ministries, as amended by Presidential Decree Number 67 Year 2010; 18. Decree of The Minister of Finance No. 291/KMK.05/1997 on Bonded Area, as amended several times recently by Regulation of The Minister of Finance No. 101/PMK.04/2005; 19. Regulation of the Minister of Commerce No. 12/M-DAG/PER/3/2009 on Delegation of Authority Issuance of Permits in the Field of Foreign

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Trade Concession To the Board of Free Trade Zone and Free Port of Batam, National Commercial Free Trade Zone and Free Port Bintan and Concession Area Agency Free Trade and Free Port Karimun; 20. Regulation of the Minister of Trade Number 45/MDAG/PER/9/2009 regarding Importer Identity Number (API) as already amended several times the latest by Regulation of the Minister of Trade Number 20/M-DAG/PER/7/2011; 21. Regulation of the Minister of Trade Number 54/MDAG/PER/10/2009 General Provisions in the Field of Import; 22. Regulation of the Minister of Trade Number 31/MDAG/PER/7/2010 on Organization and Administration of the Ministry of Commerce; DECIDES: To stipulate: REGULATION OF THE MINISTER OF TRADE CONCERNING PROVISIONS ON IMPORT OF NON NEW CAPITAL GOODS Article 1 In this Ministerial Regulation, the meaning of: 1. Non New Capital Goods are capital goods as a business or to produce something, which is still suitable to be used, or reconditioned, remanufacturing, re-functioned back and not a scrap; 2. Direct User Company is a company that already has a business license Non New Capital Goods imported for the purposes of its production process or used solely by the company for other purposes not in the production process; 3. Recondition Company is a company that already has a business license reconditioning industry for Non New Capital Goods processing into final products for export purpose or fulfilling orders in domestic Direct User Company; 4. Remanufacturing company is a company that already has a business license remanufacturing industry for Non New Capital Goods processing into final products for export purpose or fulfilling orders in domestic Direct User Company; 5. Health Equipment Provider Company is a company that already has a business license to be able to import the Non New Capital Goods containing ionizing radiation sources for medical services; 6. Business License is a license granted to the industry / enterprises to conduct business activities issued by the competent authorities in accordance with the provisions of the legislation; 7. Surveyor is a survey company authorized to conduct technical inspection of import Non New Capital Goods; 8. Minister is the minister who conducted the affairs of government in the field of trade;

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9. Director General is Director General of Foreign Trade, Ministry of Commerce; 10. Director is the Director of Import, the Directorate General of Foreign trade, Ministry of Commerce. Article 2 (1)Non New Capital Goods which can be imported include goods according Tariff Heading / HS are listed in the Attachment which is an integral part of this regulation; (2)Non New Capital Goods as referred to in paragraph (1) may only be imported by: a. Direct User Company; b. Recondition Company; c. Remanufacturing Company; and/or d. Health Equipment Provider Company Article 3 (1)Each implementation of Non New Capital Goods imported as referred to in Article 2 paragraph (1) must obtain approval from the Director; (2)Direct User Company as referred to in Article 2 paragraph (2) letter a, which would make imports of Non New Capital Goods import approval must apply in writing to the Director by attaching requirements: a. photocopy of business license granted to the company to conduct business activities other than trading issued by the competent authorities in accordance with the provisions of the legislation; b. photocopy Producer Importer Identity Number (API-P); and c. photocopy of Taxpayer Identification Number (NPWP) (3)Recondition Company or the Company Remanufacturing referred to in Article 2 paragraph (2) letters b and c that will make Non New Capital Goods imports should apply for import approval in writing to the Director by attaching requirements: a. photocopy of Industry License remanufacturing recondition or issued by the competent authorities in accordance with the provisions of the legislation; b. photocopy Producer Importer Identity Number (API-P); c. photocopy of Taxpayer Identification Number (NPWP); d. photocopy Surveyor Report on the technical feasibility of restoration and repair service business facilities including machinery, equipment sales and service capabilities; e. recommendations from the Ministry of Industry; and f. demand letter and affidavit sufficiently sealed from the Company's Direct User to meet the domestic demand. (4)Health Equipment Provider Company as referred to in Article 2 paragraph (2) letter d, which would make imports of Non New Capital

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Goods import approval must apply in writing to the Director by attaching requirements: a. photocopy of Industry License remanufacturing recondition or issued by the competent authorities in accordance with the provisions of the legislation; b. photocopy of the General Importer Identification Number (API-U); c. photocopy of Taxpayer Identification Number (NPWP); d. Recommendations of the Nuclear Energy Agency (BAPETEN). Article 4 Director issuing the import approval within 5 (five) working days from the date of receipt of the request referred to in Article 3 is complete and correct. Article 5
(1) Company as referred to in Article 2 paragraph (2) which has been

approved by Non New Capital Goods imports must report in writing to the Director of the realization of every month, no later than 15 on the next months; (2) Submission of the report referred to in paragraph (1) made in terms of importation realized or unrealized; (3) The report referred to in paragraph (1) delivered via http://inatrade.kemendag.go.id with a copy to the relevant technical agencies. Article 6 (1) Non New Capital Goods Imports has received import approval as referred to in Article 3 shall be carried out technical examination by Surveyor in the country of origin and unloading of goods; (2)Technical examination of Non New Capital Goods as referred to in paragraph (1) include: a. feasibility of use, which is proper to use, repair, and / or reoperated; b. The following technical specifications of the classification of goods according to Tariff Heading / HS 10 (ten) digits; and c. number and value (3) Results of technical examination by Surveyor of Non New Capital Goods as referred to in paragraph (2) is poured into the Certificate of Inspection which states: a. feasibility of use, which is proper to use, repair, and / or reoperated; b. technical specifications; c. information number, and value; and d. not a scrap (4)Certificate of Inspection as referred to in paragraph (3) is used as a supplementary document in the completion of customs in the import customs clearance;

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(5)The whole burden of the cost of the technical inspection carried out by the Surveyor as referred to in paragraph (1) borne by the company referred to in Article 2 paragraph (2) Article 7 (1)The implementation of the technical inspection of import Non New Capital Goods as referred to in Article 6 carried by a Surveyor appointed Minister; (2)Surveyor appointed as referred to in paragraph (1) must meet the following requirements: a. have a Business License Services Survey (SIUJS); b. experience as a surveyor at least 5 (five) years; c. have branches or representative and / or affiliates in foreign countries and have a network to support the effectiveness of the verification service; and d. has a track record in import verification activity management. (3)Surveyor shall submit a written report on the technical examination of Non New Capital Goods imported periodically every month to the Director no later than 15 on the next months. (4) Surveyor shall submit a report on the technical inspection of importNon New Capital Goods periodically every month at the latest date of 15 on the next month through http://inatrade.kemendag.go.id with copies to the relevant technical institutions Article 8 Non New Capital Goods as referred to in Article 2 paragraph (1) are included in Tariff Heading / HS 84 and 85 are listed in the Attachment of this regulation must be at a maximum of 20 (twenty) years. Article 9
(1) Non New Capital Goods as referred to in Article 2 paragraph (1) are

included in Tariff Heading / HS 88 and 89 are listed in the Attachment of this regulation shall be exempt from the provisions of the technical inspection referred to in Article 6; (2)The implementation of technical examination Non New Capital Goods included in the tariff Heading / HS 88 and 89 determined by the Minister of Transportation under the provisions of legislation and procedures applicable to civil aircraft and ships; (3)Non New Capital Goods in Post Tariff / HS 8901, 8902, 8903, 8904, and 8905 are over 20 years old should get a recommendation from the Ministry of Industry. Article 10 (1)In order to export development and investment, relocation of industrial activities (bedol factory), infrastructure development, and for export, Non New Capital Goods which are not included in the Appendix of this

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regulation may be granted import approval by the Director General on behalf of the Minister; (2)To obtain import approval as referred to in paragraph (1), the company must apply to the Director-General and shall meet the requirements referred to in Article 3 paragraph (2), paragraph (3) or subsection (4), as well as getting a recommendation from the competent authority in accordance with the provisions of legislation Article 11 (1)Non New Capital Goods as referred to in Article 2 paragraph (1) that are imported into the Bonded Zone are exempt from the provisions of Article 3 and the provision of technical inspection referred to in Article 6; (2) Non New Capital Goods used in Bonded Zone for more than 2 (two) years may be transferred or resold to other companies in the Other Place in the Customs Area; (3)Non New Capital Goods are transferred or sold as referred to in paragraph (2): a. should be conducted technical examination by Surveyor regarding the feasibility of use and technical specifications of Non New Capital Goods referred to in the location Bonded Zone; b. does not require import approval; and c. implementation of its expenditure in accordance with statutory regulations. (4)Alienation of the goods referred to in paragraph (3) is done through the Minutes, signed by the Head Office and Head Office Bonded Zone Customs and Excise local and a copy submitted to the DirectorGeneral; (5)If the results of technical examination as referred to in paragraph (3) does not meet the provisions referred to in Article 6 paragraph (3) letter a and b, the implementation of expenditure referred to in paragraph (2) must comply with the provisions of the legislation Article 12 (1)Non New Capital Goods as referred to in Article 2 paragraph (1) are included in Tariff Heading / HS 8471.41.10.00 and 8531.20.00.00 only be imported into the Bonded Zone; (2)Non New Capital Goods as referred to in paragraph (1) must meet the following requirements: a. imported in one piece and is an integral unit which is suitable to be used the following components, which are packed in one package; b. maximum age of 5 years from date manufactured; and c. specifications and final type of Central Processing Unit (CPU) Pentium 4 minimum of the following accessories supporters and types of monitors are Liquid Crystal Display (LCD).

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(3)Non New Capital Goods as referred to in paragraph (1) may only be imported by the Company Recondition who have obtained approval from the Director. (4)To obtain import approval as referred to in paragraph (3), Recondition Company must apply for import approval in writing to the Director by attaching requirements: a. photocopy reconditioned Industry License issued by the competent authorities in accordance with the provisions of the legislation; b. photocopy Producer Importer Identity Number (API-P); c. photocopy of Taxpayer Identification Number (NPWP); d. recommendations from the Ministry of Industry; e. photocopy Surveyor Report on the technical feasibility of restoration and repair service business facilities including machinery, equipment sales and service capabilities; and f. demand letter and affidavit sufficiently sealed from the Company's Direct User to meet the domestic demand (5)Non New Capital Goods Imports referred to in paragraph (1) which has received import approval as referred to in paragraph (3) must be conducted technical examination referred to in Article 6. Article 13 Non New Capital Goods imports origin who have been reconditioned or remanufactured and will be transferred or sold must comply with the provisions of the legislation. Article 14 (1)Company referred to in Article 2 paragraph (2) which violates the provisions of this regulation subject to sanctions: a. revocation of Importer Identity Number (API) in accordance with the provisions of legislation regarding Importer Identity Number (API); and/or b. accordance with the provisions of criminal legislation (2)Surveyors who do not implement the obligation referred to in Article 7 paragraph (3) determination revocation sanction as the executor of the technical inspection of import-Non New Capital Goods Article 15 (1)Import approval issued by Regulation of The Minister of Trade Number 58/M-DAG/PER/12/2010 on the Import of Non New Capital Goods shall remain in force until the term of validity. (2)If the Non New Capital Goods imported under import approval as referred to in paragraph (1) has not reached at the time of import approval expires, the implementation of the imports can be made until the date of February 28, 2012 with the requirement:

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a. have been conducted technical examination by Surveyor prior to the date of December 31, 2011 as evidenced by a Certificate of Inspection; or b. technical examination has been carried out prior to the date of December 31, 2011 in accordance with the provisions of legislation and procedures applicable to civil aircraft and marine vessels, special Tariff Heading / HS 88 and 89. (3)Provisions regarding the issuance of import approval of Non New Capital Goods Commercial Agency delegated to the Regions Batam, Bintan Area Agency Concession and Concession Area Agency Karimun as stipulated in the Regulation of the Minister of Trade Number 12/MDAG/PER/3/2009, remain valid and implementation refers to this regulation. Article 16 Implementation of this regulation be evaluated every 6 (six) months. Article 17 This Ministerial Regulation shall come into force on January 1, 2012 and ending on December 31, 2013. For public cognizance, it is ordered that this regulation be promulgated in the Official Gazette of the Republic of Indonesia. Stipulated in Jakarta on December 29, 2011 MINISTER OF TRADE OF REPUBLIC OF INDONESIA Signed, GITA IRAWAN WIRJAWAN