1. FINANCE MINISTER REGULATION PMK 143/PMK.04/2011 DATED AUGUST 26, 2011 REGARDING BONDED WAREHOUSE (BW) Pekanbaru, 5 th October 2011

2. BACKGROUND  THERE IS AMENDMENT ON LAW REGARDING CUSTOMS  LAW NO 10 YEAR OF 1995 AS LASTLY AMENDED WITH LAW NUMBER 17 YEAR OF 2006  THERE IS AMENDMENT OF GOVERNMENT REGULATION (PP) REGARDING BONDED STORAGE FACILITY  PP NO. 33 YEAR OF 1996 AMENDED BY PP NO. 32 YEAR OF 2009  ACCOMODATING SUGGESTION/INPUT FROM STAKE HOLDER  ENHANCING SERVICE AND SUPERVISION ON BONDED WAREHOUSE  AS A FOLLOW UP TO THE PRESIDENT’S DIRECTIVES (UKP4- PRESIDENTIAL WORK UNIT FOR DEVELOPMENT MANAGEMENT AND CONTROL ) PMK 143/PMK.04/2011

3. LOGISTIC CENTRE SUPPORTING INDUSTRY MOU WITH INDUSTRIAL COMPANY AS BUYER CANDIDATE, BY ATTACHING THE GOODS TYPE NO PRODUCTION PROCESS, ONLY SIMPLE WORKS ARE ALLOWED PROVISION OF PROHIBITION AND LIMITATION IS APPLIED (EXISTED) FTA/PTA SCHEME IS PREVAILED NO STORAGING FINISHED PRODUCT  WHICH IS DIRECTLY AIMED FOR END USER BONDED WAREHOUSE (BW) PHILOSOPHY

4. MAIN PRINCIPLES OF BW POLICY Confirmation of BW function - Supporting local industry (either BA or non-BA industrial company), or - Distribution center for export-purpose imported product - Distribution center for duty free shop (TBB) ● Risk Management - Profiling the BW - Service and Supervision by risk management ● Automation - IT-based Service and supervision ● Delegation of Authority - Headquarter - Regional Office and Customs Service Office

5. Arrangement of BW CONSIST OF : 10 CHAPTERS AND 37 ARTICLES, AS FOLLOWS: BAB I GENERAL PROVISION BAB II ESTABLISHMENT OF BONDED WAREHOUSE BAB III TREATMENT OF CUSTOMS AND TAXATION BAB IV OBLIGATION, RESPONSIBILITY, AND PROHIBITION BAB V THE ENTRY AND RELEASE OF GOODS AND EXTERMINATION BAB VI CUSTOMS DECLARATION BAB VII PERMIT REVOCATION AND SUSPENSION BAB VIII SUPERVISION BAB IX TRANSITION PROVISION BAB X CLOSING PROVISION

6. GENERAL DESCRIPTION OF BW TERMS A A A A A B Company A as BW Operator Company A as BW Operator and concurrently as BW Entrepreneur Company B as Entrepreneur in the BW (PPGB) A Company A as BW Operator Entrepreneur in the BW and concurrently the BW Operator for Company B (PDGB) Company A as BW Operator and also the only Entrepreneur A B A A A PMK 143 year of 2011KMK No. 399 year of 1996

7. RISK MANAGEMENT  BW SERVICE AND SUPERVISION BASED ON PROFIL AND INFORMATION TECHNOLOGY (IT) AVAILABILITY TO THE COMPANY  GOOD PROFILE  MAXIMUM SERVICE,MINIMUM SUPERVISION  BAD PROFILE  MINIMUM SERVICE, MAXIMUM SUPERVISION  IMPLEMENTATION IN FORM OF BW WITH THE FACILITY OF PRIORITY STATUS

8. TIME PERIOD OF BW PERMIT AND TIME PERIOD OF GOODS STORAGING  BW PERMIT  HAS TIME PERIOD LIMIT: FOR BW OPERATOR  5 YEARS FOR BW Entrepreneur  3 YEARS FOR BW OPERATOR AND Entrepreneur  3 YEARS  PERMIT OF IMPORT GOODS STORAGING IN THE BW IS GIVEN ONE YEAR TIME PERIOD SINCE THE IMPORT DECLARATION DATE

9. BONDED WAREHOUSE TYPES  BW THAT SUPPORTING INDUSTRY INDUSTRY IN THE BONDED AREA INDUSTRY IN THE OTHER PLACES WITHIN CUSTOMS AREA (TLDDP)  BW AS SPECIAL DISTRIBUTION CENTER OF DUTY FREE SHOP (TBB); OR  BW AS TRANSIT POINT (EXPORT PURPOSE) BW is allowed to choose only one function/type of BW within one location

10. CRITERIA OF COMPANY/INDIVIDU THAT CAN NOT APPLY FOR BW PERMIT  Company and/or company responsible bearer that has ever conducted any customs/excise crime, and/or  Company and/or the responsible bearer whose company has been declared as bankruptcy by Court Can not be given the approval as BW for 10 years since finishing the crime punishment and/or the being legally determined as bankrupt

11. EXTENSION OF BW PERMIT PERMIT EXTENSION MUST BE APPLIED BEFORE THE EXPIRY DATE OF PERMIT IF THE PERMIT EXTENSION (RENEWAL) HAS NOT YET ISSUED, WHILE THE PERMIT HAS BEEN EXPIRED, THEN FACILITY SHALL NOT BE GIVEN TO THE GOODS ENTERED TO BW IF NOT APPLYING FOR EXTENSION: THE PERMIT IS LEGALLY REVOKED, AND THE FACILITY FOR GOODS MUST BE ENDED. ATTENTION: EXPIRY DATE FOR THE PERMIT THAT THE TIME PERIOD IS NOT ATTACHED IN IT IS ON MAY 23 RD, 2012

12.  GOODS ENTERED TO BW FROM OUTSIDE CUSTOMS AREA: a. SHALL BE GIVEN CUSTOMS DUTY DEFERMENT; b. SHALL BE GIVEN EXCISE EXEMPTION; AND/OR c. SHALL NOT BE SUBJECTED TO IMPORT TAX. CAPITAL GOODS TO BE UTILIZED FOR THE BW,CAPITAL GOODS AND/OR EQUIPMENT FOR BUILDING AND EXPANDING THE WAREHOUSE, OFFICE EQUIPMENT, AND GOODS TO BE CONSUMED IN THE BW: SHALL NOT GET FACILITY TAXATION AND CUSTOMS TREATMENT

13. BW OBLIGATION ❀ BW IS OBLIGED TO PROVIDE FACILITIES AND INFRASTUCTURE (COMPUTER) FOR SERVICE AND SUPERVISION ACTIVITIES. ❀ INVENTORY/STOCK CENSUS MUST BE DONE AT LEAST ONCE IN A YEAR

14. PROVISION OF PROHIBITION BW Entrepreneur or BW Operator cum Entrepreneur shall be prohibited to: 1. Entry the import goods that is not based on the BW permit; 2. Entry the goods that is prohibited for import 3. Storage the goods originated from Other Places within Customs Area; 4. Release the goods with different purpose that is mentioned in the BW Permit.

15. BW 1. OUTSIDE CUSTOMS AREA; 2. BONDED AREA/ DUTY FREE SHOP (RETURNED/REJECTED GOODS) 3. OTHERS BW (SAME MANAGEMENT); 4. BW THAT ITS PERMIT HAS BEEN REVOKED; 5. FREE TRADE ZONE AND FREE HARBOUR; ENTRY OF GOODS TO BW

16. BW PURPOSES 1. BONDED ZONE; 2. OUTSIDE CUSTOMS AREA; 3. DUTY FREE SHOP; 4. OTHERS BW (SAME MANAGEMENT); 5. FREE TRADE ZONE AND FREE HARBOUR; 6. OTHER PLACES WITHIN CUSTOMS AREA. RELEASE OF GOODS FROM BW

17. -Submit application -Attachment of Document APPLICANT TIME CERTAINTY OF BW PERMIT SERVICES -Checking document completeness -Forward it to HQ - Minutes of Examination -Recommendation Customs Service Office (15 working days ) APPROVAL/ REJECTION HQ (10 WORKING DAYS) * After application be received completely

18. TRANSITIONAL PROVISION a) For existed BW permit without time period, the permit shall be valid until May 23 rd, 2012 b) For existed BW permit with time period, the permit shall be valid until its expiry date.

19. Finance Minister Regulation Number 143/PMK.04/2011 Will take into force 90 days since the stipulation date (5 th December 2011) PMK VALIDATION TIME

20. For Advice/Input/further question: 021 4890308 ext 321/307 email : kitetpb@yahoo.co.id

21. THANK YOU