DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 643/MPP/Kep/9/2002 DATED SEPTEMBER 23, 2002 ON THE IMPORT OF SUGAR

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1 DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 643/MPP/Kep/9/2002 DATED SEPTEMBER 23, 2002 ON THE IMPORT OF SUGAR THE MINISTER OF INDUSTRY AND TRADE, Considering : a. that an increase in the supply of imported sugar to domestic industries and consumers in excess of needs has led to sugar oversupply which in the and inflicts losses on the community and disrupts the income of domestic sugarcane growers; b. that in line with the mater in letter a, to intensify efforts to protect the public health from the impact of direct use or consumption of raw sugar and promote the income of domestic sugarcane growers, the import of sugar needs to be controlled; c. that in this connection a decree of the Minister of Industry and Trade needs to be issued. In view of : 1. Ordina nce of 1934 (Statute Book of 1938 No. 86) as has been amended and supplemented; 2. Law No. 23/1992 on Health (Statute Book of 1992 No. 100, Supplement to Statute Book No. 3495); 3. Law No. 7/1994 on the Ratification of Agreement Establishing The World Trade Orga nization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564); 4. Law No. 10/1995 on Custom Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612); 5. Law No. 7/1996 on Food (Statute Book of 1996 No. 99, Supplement to Statute Book No. 3656); 6. Law No. 8/1999 on Consumer's Protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821); 7. Government Regulation No. 69/1999 on Food Label and Advertisement (Statute Book of 1999 No. 131, Supplement to Statute Book No. 3867); 8. Government Regulation No. 58/2001 on the Development and Control of Consumer's Protection (Statute Book of 2001 No. 103, Supplement to Statute Book No. 4126); 9. Presidential Decree No. 260/1967 on the Affirmation of Tasks and Responsibilities of the Minister of Trade in the Field of Foreign Trade; 10. Presidential Decree No. 228/M/2001 on the Formation of the Mutual-Help Cabinet; 11. Presidential Decree No. 102/2001 on the Position, Task, Function, Authority, Organizational Structure and Work Mechanism of Ministry; 12. Presidential Decree No. 109/2001 on the Organizational Unit and Task of First Echelon Officials of Ministry; 13. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/1997 on General Provisions in the Import Sector; 14. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 on Goods Subject to Import Regulation; 15. Decree of the Minister of Industry and Trade No. 550/MPP/Kep/10/1999 on Importer's Identification Number (API) as has been amended by Decree of the Minister of Industry and Trade No. 253/MPP/Kep/7/2000; 16. Decree of the Minister of Industry and Trade No. 717/MPP/Kep/12/1999 on the Revocation of the System of the Import of Sugar and Rice; 17. Decree of the Minister of Industry and Trade No. 86/MPP/Kep/3/2001 on the Organization and Work Mechanism of the Ministry of Industry and Trade;

2 18. Decree of the Minister of Industry and Trade No. 141/MPP/Kep/3/2002 on Special Importer's Identification Number (NPIK). DECIDES : To stipulate : DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON THE IMPORT OF SUGAR. Hereinafter referred to as : Article 1 1. Raw sugar and refined sugar shall be sugar used as raw material in a production process, including HS ; ; and Plantation white sugar shall be sugar that can be directly consumed without further process, including HS ; and Recommendation shall be a letter issued by the relevant agency/unit providing technical explanation and not functioning as a permit/approval of import. 4. Minister shall be the Minister of Industry and Trade. 5. Director General shall be the Director General of Foreign Trade of the Ministry of Industry and Trade. Article 2 (1) The raw sugar and refined sugar as referred to in Article 1, point 1 can only be imported by the companies declared as sugar producer importer, hereinafter referred to as Sugar IP. (2) The declaration of Sugar IP as referred to in paragraph (1) shall cover time of shipment, country and type of the sugar and refined sugar that can be imported. (3) The raw sugar and refined sugar imported by the Sugar IP as referred to in paragraph (1) shall only be used on the raw material of production process and industry owned by the Sugar IP and shall be prohibited from being traded or transferred to other party. Article 3 (1) The Director General shall declare companies as Sugar IP as referred to in Article 2. (2) The companies wishing to obtained the status of Sugar IP as referred to in paragraph (1) shall file a written application to the Director General by enclosing : a. letter of recommendation from : 1) the Director General of Chemical and Agro Industries and Forest Products (IKAHH) of the Ministry of Industry and Trade in case imported raw sugar and refined sugar are to be used as the raw material of refinery industry or other industry; 2) The Director General of Plantation Production Development of the Ministry of Agriculture in case imported raw sugar is to be used as the raw material of plantation white sugar mill. b. industrial business permit/industrial registration certificates; c. producers importer's identification number (API-P) or limited importer's identification number (API-T); d. corporate registry certificate (TDP);

3 e. special sugar importer's identification number (NPIK); f. taxpayer code number (NPWP). Article 4 (1) After receiving the written application from the companies as referred to in Article 3, paragraph (2), the Director General shall approve or reject the application for the status of Sugar IP as later than 10 (ten) days starting from the receipt date of the application. (2) The model of document on the status of Sugar IP shall be as contained in Attachment I to this Decree. Article 5 The status of Sugar IP as referred to in Article 3 shall be valid for 1 (one) year.. Article 6 (1) The companies that have received the status of Sugar IP shall convey a written report to : a. The Director General attn. the Director of Import, the Ministry of Industry and Trade, every month about the importation of raw sugar and refined sugar as later than the 15 th after the month of importation; b. The Director General of Chemical and Agro Industries and Forest Products attn. the Director of Agro Industry, the Ministry of Industry and Trade, every 6 (six) months about the realization and distribution of processed products from the refinery industry and other industry, no later than the 15 th after a period of every 6 (six) months during the realization and distribution of processed products in question is done; c. The Director General of Plantation Production Development attn. the Director of Seasonal Plants, the Ministry of Agriculture, every 6 (six) months about the realization and distribution of processed products from the plantation white sugar mill, no later than the 15 th after a period of every 6 (six) months during which the realization and distribution of processed products in question is done. (2) The model of written report from the companies that have obtained the status of Sugar IP as referred to in paragraph (1) shall be : a. as contained in Attachment II to this Decree in case of report in the importation of raw sugar and refined sugar to the Director General attn. the Director of Import, the Ministry of Industry and Trade; b. specified respectively by the Director General of Chemical and Agro Industries and Forest Products, the Ministry of Industry and Trade, and the Director General of Plantation Production Development, the Ministry of Agriculture in case of the realization and distribution of processed products. Article 7 (1) The plantation white sugar as referred to in Article 1, point 2, can only be imported if the price of plantation white sugar from sugarcane farmers exceeds Rp ,-/Kg. (three thousands, one hundred rupiahs per kilogram). (2) The plantation white sugar as referred to in paragraph (1) can only be imported by the companies that have been appointed as registered sugar importer, hereinafter referred to as Sugar IT. Article 8 (1) The Director General shall appoint companies as Sugar IT as referred to in Article 7.

4 (2) To obtain the status of Sugar IT as referred to in paragraph (1) as least 75% (seventy five percent) of the raw material of the companies shall : a. originate from sugarcane farmers; or b. result from cooperation with local sugarcane farmers. (1) The companies that have fulfilled the provisions in paragraph (2) shall file a written application to the Director General by enclosing : a. Industrial business permit/industrial registration certificate; b. Producer/limited importer's identification number (API-P/T) or general importer's identification number (API-U); c. Corporate Registry Certificate (TDP); d. Special sugar importer's identification number (NPIK); e. Taxpayer Code Number (NPWP). Article 9 (1) After receiving the written application from the companies as referred to in Article 8, paragraph (3), the Director General shall approve or reject the application for the status of Sugar IT as later than 10 (ten) work days after the receipt data of the application. (2) The model of document on the status of Sugar IT shall be as contained in Attachment III to this Decree. Article 10 The Director General shall determine time of shipment, port of destination, quantity and type of plantation white sugar that can be imported by Sugar IT. Article 11 The status of Sugar IT as referred to in Article 8 shall be valid for 3 (three) years. Article 12 (1) The companies that have obtained the status of Sugar IT shall convey a written report to the Director General attn. the Director of Import, the Ministry of Industry and Trade, every month the importation of plantation white sugar, no later than the 15 th after the month of importation. (2) The model of written report from the companies that have obtained the status of Sugar IT as referred to in paragraph (1) shall be as contained in Attachment IV to this Decree. Article 13 (1) The status of Sugar IP or Sugar IT shall be frozen if the companies twice fail to convey a written report as referred to in Article 6 and Article 12. (2) The Director General shall freeze the status of Sugar IP and Sugar IT as referred to in paragraph (1) and lift the freezing of the status of Sugar IP and Sugar IT. Article 14 (1) The status of Sugar IP or Sugar IT shall be revoked if the companies : a. change, add and/or replace the content of document on the status of Sugar IP or Sugar IT; or

5 b. are declared by a court guilty of committing a criminal offence related to the abuse of the status of Sugar IP or Sugar IT. (2) The Director General shall revoke the status of Sugar IP or Sugar IT as referred to in paragraph (1). Article 15 (1) The status of Sugar IP that has been granted on the basis of Decree of the Minister of Industry and Trade No. 456/MPP/Kep/6/2002 on the Import of Raw Sugar shall remain valid until the expire date of the status of Sugar IP. (2) The import of plantation white sugar and refined sugar whose L/C was opened before the stipulation date of this Decree still can be done in the stipulation that the imported sugar arrives at the port of destination not later than 21 (twenty-one) days after the stipulation date of this Decree. Article 16 An exception to this Decree can only be given by the Minister. Article 17 With the issuance of this Decree : 1. Provisions on the import of sugar in Decree of the Minister of Industry and Trade No. 717/MPP/Kep/12/1999 on the revocation of Rules on the Import of Sugar and Rice, so long as they are related to the import of sugar, shall be declared null and void. 2. Decree of the Minister of Industry and Trade No. 456/MPP/Kep/6/2002 on the Import of Raw Sugar shall be revoked. Article 18 This decree shall come into force as from the date of stipulation. For public cognizance, this Decree shall be announced by placing it in the State Gazette of the Republic of Indonesia. Stipulated in Jakarta On September 23, 2002 THE MINISTER OF INDUSTRY AND TRADE sgd. RINI M SUMARNO SOEWANDI