Regulation of the Minister of Industry No. 05/M-IND/PER/2/2014 on the Procedures of issuing industrial estate permits

Article 1 industrial estate. Referred to in this Ministerial Regulation as: 8. Industrial estate infrastructure is infrastructure 1. Industrial estate is an area where industrial activi- within industrial estate covering roads, rain wa- ties are concentrated, equipped with supporting terworks, clean water installations, electrical infrastructures and facilities developed and man- power distribution installations, telecommunica- aged by industrial estate company. tion distribution networks, industrial waste wa- 2. Industrial estate company is a company arranging ter collecting networks, waste water processing the development and management of industrial installations, temporary solid waste reservoir, estate. street lighting and fire fighting units. . 3. Industry designated area is an expanse of land 9. Industrial estate supporting facility includes man- designated for industrial activities based on a spa- agement office, bank, post office, telecommuni- tial layout plan endorsed in conformity with the cation service office, polyclinic, canteen, place law and regulation. of worship, industrial employee housing complex 4. Expansion of industrial estate is expanding the and dormitory, security post, fitness center, pub- area of industrial estate in excess of the permit- lic transport mode stop and other supporting fa- ted area of land. cilities. 5. Industrial estate managing company is a legal en- 10. Industrial estate order is the rule set by industrial tity set up by virtue of the Indonesian law and estate company, covering the rights and obliga- domiciled in Indonesia, appointed by and/or re- tions of industrial estate company, industrial es- ceiving the transfer of rights and obligations from tate managing company, and industrial company special industrial estate company to manage in- in the management and utilization of industrial es- dustrial estate partly pi- whotty, tate. Business News 8678/3-13-2015 11. Industry is all forms of economic activities pro- RPL, is the effort to monitor the components of cessing raw materials and/or utilizing industrial the environment affected by planned business resources to produce goods which have higher and/or activity. value added or benefit including industrial service. 18. Significant impact is a fundamental environmental 12. Environmental impact analysis, hereinafter called change caused by a business and/or activity Amdal, is a study on the significant impact of a 19. Environmental permit is a permit issued to any- planned business and/or activity on the environ- body carrying out business and/or activity re- ment, needed to make a decision on the realiza- quired to have Amdal or UKL-UPL to protect and tion of business and/or activity. manage the environment as a prerequisite to se- 13. Environmental management effort and environ- cure a business and/or activity permit. mental monitoring effort, hereinafter called UKL- 20. Integrated one-stop service, hereinafter abbrevi- UPL, is the effort to manage and monitor busi- ated into PTSP, is the activity to provide licens- nesses and/or activities which have no significant ing and non-licensing services by receiving the impact on the environment, needed to make a de- delegation of authority from institution or agency cision on the realization of business and/or activ- having licensing and non-licensing authority, with ity the management process started from the phase 14. Statement of readiness for environmental man- of filing applications to the phase of issuing docu- agement and monitoring, hereinafter called SPPL, ments in one place. is a statement of readiness from the management 21. Regional government is governor, regent or may- of business and/or activity to manage and moni- or and regional apparatus work unit (SKPD) as the tor the environment over the impact of the en- organizer of regional government. vironment and effort and/or activity required to 22. Industrial estate evaluating team, hereinafter have Armlet or UKL-UPL. called Ki evaluating team is a team Set up by goy- 15. Ensironniental impact analysis, hereinafter called emoriregentimeyor to arsdit the fulfillment and Andel, is a accurate end deep 'Study of significant completeness of tiftlit118M6 and the operational impact of planned business andfor activity. preparedness of industrial estate. , 16. Environment management plan, hereinafter called 23.Winister is the minister carrying out government RKL, is the effort to handle impacts on the envi- j affairs in the industrial field. ronment as a result nf planned business and/or activity. , CHAPTER 41 17. Environment monitoring plan, hereinafter called THE AUTHORITY TO ISSUE INDUSTRIAL ESTATE Business News 867813-13-2015 2 GOVERNMEI PERMITS AND INDUSTRIAL ESTATE from Governor/Regent/Mayor shall sign industrial EXPANSION PERMITS estate permits and industrial estate expansion

Article 2 permits. The Minister, Governor or Regent/Mayor shall (5) If no PTSP is formed, the authority as referred to facilitate the issuance of industrial estate permits and in paragraphs (3) and (4) shall be realized by the industrial estate expansion permits. regional apparatus working unit (SKPD) oversee- ing industry.

Article 3 (1) The authority to issue industrial estate permits CHAPTER III and industrial estate expansion permits is in the INDUSTRIAL ESTATE PERMITS hands of : Part One a. Regent/Mayor for industrial estates located in Industrial Estate Permits regency/municipality; Article 4 b. Governor for industrial estates located in (1) Any business activity of industrial estate shall : more than one regencies/municipalities; or a. hold an industrial estate permit; and c. the Minister for industrial estates located in b. meet provisions in Technical Guide to Indus- more than one provinces and industrial es- trial Estates. tates within the framework of foreign invest- (2) The Technical Guide to Industrial Estates as re- ment and investment using foreign capital, ferred to in paragraph (1) letter b is to be stipu- originating from the government of other lated in a separate regulation of the Minister. country, based on an agreement signed by the Indonesian government and governments Article 5 of other countries. Industrial estate permits are valid provided (2) The authority to issue industrial estate permits the industrial estate company is still engaged in the and industrial estate expansion permits as re- operation of industrial estate. ferred to in paragraph (1) letter c is delegated to the Head of the Investment Coordinating Board Article 6 (BKPM) for and on behalf of the Minister. (1) The industrial estate permits as referred to in Ar- (3) The authority as referred to in paragraphs (1) and ticle 4 paragraph (1) letter a are issued to indus- (2) is done in PTSP. trial estate companies in the form of legal enti- (41 PTV official receiving The delegation of authority ties established based on the Indonesian law and 4 Business News 867813-13-2015 domiciled in Indonesia. their respective spatial layout plan as referred to (2) The Industrial estate companies as referred to in in paragraph (1). paragraph (1) can be in the form of : (3) The notification as referred to in paragraph (2) a. state-owned company (BUMN) or regional shall be sent no later than 1 (one) month after government-owned company (BUMD); bylaw is stipulated using the form model PIK-X. b. cooperatives; or c. private business companies. Part Two (3) Industrial estate companies as referred to in para- Procedure of Issuing Industrial Estate Permits graph (1) shall manage industrial estate. Article 9 (4) The obligation to carry out the management of To secure the industrial estate permits as re- industrial estate as referred to in paragraph (1) ferred to in Article 4 paragraph (1) letter a applicants can be diverted to other party to carry out the shall hold in-principle permits in conformity with the management of industrial estates. . law and regulation.

Article 7 Article 10 (1) Industrial estate company shall provide a mini- (1) Applications for in-principle permits shall be filed mum of 2% (two percent) of the overall industrial using form model PMK-I, complete with the fol- plots for micro small and medium businesses. lowing documents: (2) If within 2 (two) years micro small and medium a. a photocopy of deed of incorporation vali- businesses do not use the industrial land as re- dated by the Law and Human Rights Minister ferred to in paragraph (1) other industrial com- or by the minister conducting government af- panies can use it on condition land for the other fairs in the field of cooperatives for applicants industrial companies are no longer available. with status as cooperatives and especially for foreign investment the applications shall be

Article 8 complete with qualifications set by the Head (1) In deciding a spatial layout plan, provincial gov- of BKPM; ernments and regency/municipal governments b. a photocopy of taxpayer code number shall provide industry-designated land for the de- (NPWP), except foreign investment; c. sketch velopment of industrial estates. of planned location (village, sub-district, re- (2) Governors and regents/mayors shall inform the gency/municipality, province); and Minister of industry-designated land according to d. a written statement that planned location Business News 8678/3-13-2015 25 is in industry-designated land in conformity h. have industrial estate public order; and with the spatial layout plan. i. provide land for micro small and medium busi- (2) If the applications for in-principle approval as re- nesses. ferred to in paragraph (1) are complete and cor- (2) Industrial estate companies that have not met/ rect, no later than 5 (five) working days after re- do not meet the obligation as referred to in para- ceiving the applications, the official as referred graph (1), can apply for extended in-principle ap- to in Article 3 paragraph (1) or (2) according to proval once within a period of no more than 2 his/her authority shall issue in-principle approval (two) years. using form model PIK-I, with copies addressed to (3) Industrial estate companies that have secured the Minister and Governor/Regent/Mayor. extended in-principle approval as referred to in (3) If the applications for in-principle as referred to paragraph (2), and do not meet the obligation as in paragraph (1) are not complete and correct, no referred to in paragraph (1) shall not be given an later than 5 (five) working days after receiving the industrial estate permit. applications, the official as referred to in Article 3 (4) Industrial estate companies that have secured in- paragraph (1) or (2) according to his/her authority principle approval shall submit a progress report shall return the applications to be completed. on the development of industrial estates every 6 (six) months no later than January 31st in the

Article 11 ensuing year to the authorized official as referred (1) Industrial estate companies that have secured in- to in Article 3 paragraphs (1) and (2) using form principle approval no later than 2 (two) years shall model PMK-II, with copies addressed to the Min- a. have a nuance permit; ister and Governor/Regent/Mayor. b. have a location permit (5) At the time the construction of industrial estates c. provide/control land according to the law and starts, industrial estate companies can file an ap- regulation; plication for the import of equipment and materi- d. hold an environmental permit; als for physical construction and pollution control e. make a 'and site plan; according to the law and regulation. f. clear land; g. realize the planning and construction of sup- Article 12 porting infrastructures and facilities and fit (1 ) industrial estate permits are issued to industrial installations/equipment needed by industrial estate companies that meet the following condi- estate; tions: 26 Business News 867813-13-2015 a. filling an application form for industrial estate tate company and/or each industrial compa- permit using model PMK-III and enclosing a ny; latest progress report on the construction of b. rights and obligations of industrial estate industrial estate using form model PMK-II; company; b. fulfilling the requirement as referred to in Ar- c. rights and obligations of industrial company; ticle 11 paragraph (1); d. rules related to the Amdal study of industrial c. fulfilling provisions on technical guide to in- estate; and dustrial estate; e. other specific rules related to the plan of in- d. part of industrial estate is ready for operation dustrial estate company with the relevant in- at least having supporting infrastructures and dustrial businesses. facilities covering entrance road to industrial (2) The content of industrial estate order as referred estate, road networks and rain waterworks in to in paragraph (1) shall at least cover the main industrial estate and waste water treatment materials as follows: installation for industrial estate, management a. introduction; office; and b. purpose and aim; e. KI evaluating team has made an official report c. explanations on the terms used; of field audit (BAP) stating that the relevant d. types of industries that can operate in the in- company can be given an industrial estate dustrial estate and qualifications; permit. e. supporting infrastructures and facilities made (2) Industrial estate companies that have secured available in the industrial estate; industrial estate permits shall complete the con- f. scope of services provided by the industrial struction of complete supporting infrastructures estate; and facilities as referred to in Article 1 points 8 g. rights and obligations of the industrial estate and 9. company or other company appointed as the operator of the industrial estate;

Article 13 h. rights and obligations of industrial company; (1) Industrial estate order as referred to in Article 11 i. regulation on industrial buildings; and paragraph (1) letter h shall at least contain main j. environmental impact control according to materials as follows : Amdal. a. provisions in the relevant law and regulation (3) Details of main materials as referred to in para- Mat must be complied with by industrial es- graph (2) are contained in Attachment 1 which is Business News 8678/3-13-2015 27 an integral part of this Ministerial Regulation. dustrial estate as referred to in paragraph (1) are (4) The industrial estate order as referred to in para- filed without in-principle approval by filling form graph (1) is an integral part of the agreement on model PMK-IV complete with : the management of industrial estate and the use a. a photocopy of documents as referred to in of land between the industrial estate managing paragraph (1) letters a up to f; and company/industrial estate company and industrial b. original documents as referred to in paragraph companies. (1) letters g and h.

Article 14 (1) Several industrial companies carrying out indus- Article 15 trial activities before the coming into force of (1) No later than 5 (five) working days after receiv- Government Regulation No. 24/2009 on Indus- ing applications for industrial estate permits as trial Estates on their land covering an area of at referred to in Article 12 paragraph (1) letter a and least 20 (twenty) hectares in one expanse in an the conditions as referred to in Article 12 para- industry-designated area to become an industrial graph (1) letters b up to e or provisions in Article estate shall have : 14 paragraph (2) have been met, the KI evaluat- a. environmental permit; ing team has completed a location audit of indus- b. deed of incorporation as industrial estate trial estate to ensure the operational preparedness complete with a letter of approval from in- of the industrial estate. dustrial companies; (2) The result of audit as referred to in paragraph (1) c. taxpayer code number (NPWP); put in the official report of audit (BAP) using d. location sketch (village, sub-district, regency/ form model PIK-II no later than 3 (three) working municipality, province); days shall be conveyed to the official as referred e. written statement that the location is indus- to in Article 3 paragraph (1) or (2) according to try-designated area in conformity with the his/her authority. spatial layout plan; (3) If the result of audit as referred to in paragraph (2) f. industrial estate sketch; recommends the issuance of permit, the official g. industrial estate order; and as referred to in Article 3 paragraph (1) or (2) no h. KI evaluating team has made an official report later than 5 (five) working days after receiving of field audit (BAP). BAP shall issue an industrial estate permit using (2) Applications for industrial estate permits for in- form model PIK-III. 28 Business News 86 78/ 3-13-2015

Article 16 (2) The expansion of industrial estate located in one (1 ) The KI evaluating team as referred to in Article regency/municipality does not require in-principle 12 paragraph (1 ) letter e is set up by governor/ approval. regent/mayor. (2) The KI evaluating team as referred to in paragraph Article 18 (1 ) is made up of elements of regional apparatus Industrial estate expansion permit is issued if task force (SKPD) responsible for : industrial estate company has secured an industrial a. industry; estate permit on condition : b. agrarian affairs; a. the industrial estate company holds an environ- c. layout; mental permit for expanded industrial estate; d. environmental protection and management; b. the industrial estate company holds an expanded and location permit; e. relevant agencies. c. the land designed as expanded area has been (3) The membership of the KI evaluating team as re- controlled, evident from a certificate of aban- ferred to in paragraph (2) also includes elements doned right (SPH); and from the directorate general in charge of industrial d. the land is located in industry-designated area. estates. (4) The work mechanism of KI evaluating team as Part Two referred to in paragraph (1 ) is contained in Attach- Procedure of Issuing Industrial ment III which is an integral part of this Ministe- Estate Expansion Permits rial Regulation. Article 19 (1 ) Application for industrial estate expansion permit CHAPTER IV is filed using form model PMK-V. INDUSTRIAL ESTATE EXPANSION PERMITS (2) The application for industrial estate expansion Part One permit as referred to in paragraph (1 ) is filed to Industrial Estate Expansion Permits the authorized official as referred to in Article 3

Article 17 paragraph (1 ) or (2) complete with location per- (1 ) Any industrial estate company that has held an mit, with copies addressed to the Minister and industrial estate permit and has operated and will Governor/Regent/Mayor. expand industrial estate shall secure an industrial (3) No later than 5 (five) working days after receiv- estate expansion permit. ing the application for industrial estate expansion Business News 8678/3-13-2015 29 permit, the KI evaluating team shall compete a ing days after receiving an official report of au- location audit of industrial estate to ensure that dit (BAP), shall issue a letter of postponement the industrial estate has met provisions in Article along with reasons for the postponement using 18. form model PIK-V. (4) The result of audit as referred to in paragraph (3) (2) In connection with the letter of postponement as put in the official report of audit (BAP) using form referred to in paragraph (1), the industrial estate model PIK-II no later than 3 (three) working days company is given a chance to complete require- has been submitted to the authorized official as ments no later than 6 (six) months after the letter referred to in Article 3 paragraph (1) or (2) ac- of postponement is signed. cording to his/her authority. (3) If after the period of time as referred to in para- (5) If the result of audit as referred to in paragraph (4) graph (1) has passed the industrial estate com- approves the issuance of permit, the authorized pany has not met provisions as referred to in Ar- official as referred to in Article 3 paragraph (1) ticle 12 paragraph (1), Article 14, and Article 18, or (2) no later than 5 (five) working days after the authorized official as referred to in Article 3 the signing of BAP shall issue an industrial estate paragraph (1) or (2) shall reject the application for expansion permit using form model PIK-IV with industrial estate permit or industrial estate expan- copies addressed to the Minister, the Head of the sion permit using form model PIK-VI. Investment Coordinating Board and Governor/Re- gent/Mayor. CHAPTER VI RIGHTS AND OBLIGATIONS OF CHAPTER V INDUSTRIAL ESTATE COMPANIES POSTPONEMENT/REJECTION OF APPLICATIONS Article 21 FOR INDUSTRIAL ESTATE PERMITS AND (1) Industrial estate company can sell or rent indus- INDUSTRIAL ESTATE EXPANSION PERMITS trial plots and/or industrial buildings in industrial

Article 20 estate to industrial companies. (1) If an application for an industrial estate per- (2) The sales of industrial plots and/or industrial mit or industrial estate expansion permit does buildings as referred to paragraph (1) shall be not meet provisions as referred to in Article 12 registered with the local Land Office. paragraph (1), Article 14 and Article 18, the (3) Industrial estate company is entitled to recom- authorized official as referred to in Article 3 penses/income from the operation of industrial paragraph (1) or 121, no later than 5 (five) work- estate for activities including : 30 Business News 8678/3-13-2015 30 a. the sales/rent of industrial plots or industrial e. make efforts related to occupational security and buildings; safety in the industrial estate. b. the operation and maintenance of supporting infrastructures and facilities; CHAPTER VII c. the safeguarding of industrial estate; and TRANSFER OF THE MANAGEMENT OF INDUSTRIAL d. the provision of information services. ESTATES

Article 23

Article 22 (1) Industrial estate company that holds an industrial Any industrial estate company that holds an estate permit and has operated can transfer the industrial estate permit and/or industrial estate expan- management of industrial estate to a company sion permit shall : appointed as the management of industrial estate a. help arrange any application for industrial estate so that the rights and obligations to manage the permit/industrial registration number for industrial industrial estate moves to the company partly companies operating in the industrial estate; or wholly based on a written agreement on the b. comply with provisions in RKL and RPL already transfer of the management of industrial estate approved by the provincial or regency/municipal between both sides. government; (2) The transfer of the management of industrial es- c. enforce industrial estate order to industrial com- tate will be realized if industrial estate company panies operating in the industrial estate; has met the following conditions: d. convey data of industrial estate twice a year us- a. holding an industrial estate permit; ing forms model PMK-VI and model PMK-VII to b. having signed an agreement on the transfer the authorized official as referred to in Article 3 of the management of industrial estate be- paragraph (1) or (2) in accordance with its indus- tween industrial estate company and indus- trial estate permit, with copies addressed to the trial estate managing company; and Minister and Governor/Regent/Mayor with regard c. industrial plots whose management will be to the business activities of the industrial estate transferred have obtained a right to build according to the schedule as follows: (HGB). 1. data in the first semester of the relevant year (3) To manage industrial estate, industrial estate shall be submitted no later than July 31; and company shall meet licensing provisions. 2. annual data shall be submitted every January (4) The validity period of agreement on the transfer Si st of the ensuing year at the latest; of the management of industrial estate is based Business News 8678/3-13-2015 31 on the agreement signed. ment of industrial estate as referred to in Article 24 (5) The agreement on the transfer of the manage- paragraph (1) does not reduce the responsibility of ment of industrial estate as referred to in para- industrial estate company for the management of in- graph (1) shall cover at least the following activi- dustrial estate according to its industrial estate permit. ties: a. complying with the conditions and obliga- CHAPTER VIII tions set forth in the environmental permit ISSUANCE OF INDUSTRIAL PERMITS IN INDUS- of industrial estate according to the law and TRIAL ESTATE regulation; Article 26 b. enforcing industrial estate order to industrial Industrial permits are issued to industrial companies operating in the industrial estate; companies operating in industrial estate based on the c. operating and maintaining supporting infra- Ministerial Regulation on the issuance of industrial structures and facilities; permits, expansion permits and industrial registration d. arranging security in the industrial estate; and numbers. e. providing information services. (6) Industrial estate managing company is entitled to Article 27 recompenses/income received from the manage- (1) Industrial company which manages or utilizes haz- ment of industrial estate. ardous and toxic waste in industrial estate which holds Amdal document and covers the manage-

Article 24 ment of hazardous and toxic waste shall draw up (1) The transfer of the management of industrial es- UKL and UPL. tate to other party as referred to in Article 23 (2) Industrial company which manages or utilizes haz- shall be notified to the party granting the indus- ardous and toxic waste in industrial estate which trial estate permit. holds Amdal document but does not cover the (2) The transfer of the management of industrial es- management of hazardous and toxic water shall tate as referred to in paragraph (1) is realized us- draw up Amdal. ing form model PMK-IX, with copies addressed to (3) Industrial company in industrial estate which has the Minister and Governor/Regent/Mayor. no significant impact and/or can manage signifi- cant impact technologically shall draw up UKL

Article 25 and UPL by observing RKL and RPL for industrial The agreement on the transfer of the manage- estate. 32 Business News 8678/3-13-2015 (4) Industrial company which has an environment im- INDUSTRIAL ESTATE PERMITS AND pact outside provisions on impact as referred to INDUSTRIAL ESTATE EXPANSION PERMITS in paragraph (3) shall make a written statement Article 29 of readiness to manage and monitor the environ- (1) Industrial estate company will be given a written ment. warning if it meets one of the provisions as fol- (5) Industrial company in industrial estate, in addition lows: to fulfilling the obligations as referred to in para- a. the industrial estate company conducts ex- graphs (3) and (4), shall implement provisions in pansion without holding an industrial estate the industrial estate order made based on provi- expansion permit; sions as referred to in Article 13. b. the industrial estate company does not sub- mit data of industrial estate as referred to in

Article 28 Article 22 letter d, 3 (three) times in a row or (1) Industrial company in industrial estate is excepted deliberately submits wrong data; from : c. the industrial company carries out business a. nuance permit; activities which do not accord with provisions b. location permit; set forth in the permit already secured; c. approval of site plan; and d. industrial estate company causes dam- d. Amdal for industrial company which does not age and/or pollution to the environment manage or utilize hazardous and toxic waste. which does not accord with the Amdal I (2) Industrial company in industrial estate shall settle document; other licenses according to the law and regula- e. provisions in the industrial estate permit and/ tion, and complete the construction of factory or industrial estate expansion permit as well buildings and production facilities no later than 4 as technical guide to developing industrial es- (four) years after the certificate of land purchase tate as referred to in Article 12 paragraph (1) has been issued. are not met; and (3) The readiness to settle the licensing as referred f. the construction of complete industrial estate to in paragraph (2) is realized by making a written supporting infrastructures and facilities as re- statement using form model PMK-VIII. ferred to in Article 12 paragraph (2) is not completed. CHAPTER IX (2) The written warning/reprimand as referred to in WARNING, FREEZING AND REVOCATION OF paragraph (1) is issued 3 (three) times in a row Business News 8678/3-13-2015 33 with a time span of 2 (two) months each using CHAPTER X form model PIK-VII. REALIZATION (3) If after the period of written warning as referred Article 30 to paragraph (2) has passed the industrial estate In issuing industrial estate permits and/or in- company has not made/cannot make improve- dustrial estate expansionpermits that become the au- ment according to provisions, its business permit thority of province, Governor shall make an effort to : shall be frozen by a decision on the freezing of a. coordinate the issuance of industrial estate per- industrial estate permit and/or industrial estate mits and/or industrial estate expansion permits expansion permit using form model PIK-VIII. among regional apparatus task forces (SKPD) in (4) The freezing as referred to in paragraph (3) is the province and among regencies/municipalities; valid for 6 (six) months since the decision on the b. strengthen institutional capacity and human re- freezing of business permit is issued. sources in the issuanceof industrial estate permits (5) If during the period of freezing industrial estate and/or industrial estate expansion permits in the company that has its permit frozen as referred province; to in paragraph (3) makes improvements accord- c. provide facilities and infrastructures needed to is- ing to the law and regulation, the decision on the sue industrial estate permits and/or industrial es- freezing of business permit can be revoked/can- tate expansion permits in the province. celled. (6) If during the period of freezing as referred to in Article 31 paragraph (4) industrial estate company does not In issuing industrial estate permits and/or in- make improvements, the industrial estate permit dustrial estate expansion permits that become the and/or industrial estate expansion permit shall be authority of regency/municipality, regent or mayor revoked and declared null and void using form shall make an effort to : model PIK-IX. a. coordinate the issuance of industrial estate per- (7) The authority to issue written warning, freeze mits and/or industrial estate expansion permits and/or revoke industrial estate permit and/or in- among regional apparatus task forces (SKPD) in dustrial estate expansion permit as referred to in the regency/municipality; paragraphs (1), (2), and (6) is in the hand of the b. strengthen institutional capacity and human re- official authorized to issue the permits according sources in the issuance of industrial estate per- to the authority as referred to in Article 3 para- mits and/or industrial estate expansion permits in graph s 11) or 12). the regency/municipality; 34 Business News 8678/3-13-2015 . provide facilities and infrastructures needed to is- dustrial estate permits and/or industrial estate ex- sue industrial estate permits and/or industrial es- pansion permits are used as inputs to revise the tate expansion permits in the regency/municipal- policy of issuing industrial estate permits and/or 1 ity. industrial estate expansion permits. CHAPTER XI Article 34 MONITORING AND EVALUATION (1) Governor shall monitor and evaluate the issuance

Article 32 of industrial estate permits and/or industrial es- (1) To ensure the continuation of synergy and the tate expansion permits done by the regional ap- effectiveness of integrated steps in issuing indus- paratus task force (SKPD) in the province. trial estate permits and/or industrial estate expan- (2) Regent/mayor shall monitor and evaluate the issu- sion permits, provincial and regency/municipal ance of industrial estate permits and/or industrial 1 governments shall conduct monitoring, estate expansion permits done by the regional ap- (2) The monitoring as referred to in paragraph (1) is paratus task force (SKPD) in the regency/munici- intended to see developments and obstacles in pality. the issuance of industrial estate permits and/or industrial estate expansion permits. Article 35 (3) Monitoring is conducted periodically through co- (1) To ensure synergy and effectiveness, monitoring ordination and direct monitoring of the regional and evaluation can be done jointly and/or integrat- apparatus tasks force (SKPID) that issues indus- edly. trial estate permits and/or industrial estate expan- (2) Joint monitoring and evaluation which become sion permits. the authority of the government are conducted by (4) Monitoring is conducted starting from planning to 1 the ministry in charge of carrying out government issuance of industrial estate permits and/or indus- affairs in the industrial field and relevant minis- trial estate expansion permits. tries. (3) Joint monitoring and evaluation which become 1 Article 33 the authority of province are conducted by the (1) The issuance of industrial estate permits and/or regional apparatus task force (SKPD) overseeing , industrial estate expansion permits shall be evalu- industrial affairs and relevant agencies. ated at least once a year. (4) Joint monitoring and evaluation which become the 12) The results of evaluation of the issuance of in- authority of regency/municipality are conducted I Business News 8678/3-13-2015 35 by the regional apparatus task force (SKPD) over- according to the law and regulation. seeing industrial affairs and relevant agencies. CHAPTER XIV OTHER PROVISIONS CHAPTER XII Article 38 REPORTING Any change in the name, address, and/or con-

Article 36 tact person of industrial estate company shall be noti- (1) Governor shall submit a report on the issuance of fied in writing to the official authorized to issue the industrial estate permits and/or industrial estate permit based on this Ministerial Regulation no later expansion permits in the province to the Home than 1 (one) month after the change has been made. Affairs Minister and the Minister (2) Regent/Mayor shall submit a report on the issu- Article 39 ance of industrial estate permits and/or industrial Applications for industrial estate permits estate expansion permits in the regency/munici- and/or industrial estate expansion permits are exempt pality to the governor. from fees. (3) The reporting as referred to in paragraphs (1) and (2) shall be done every year and/or if needed. Article 40 (1) The models of forms used to implement this Min- CHAPTER XIII isterial Regulation are contained in Attachment II DEVELOPMENT AND SUPERVISION which is an integral part of this Ministerial Regula-

Article 37 tion. (1) The Minister shall develop and supervise the issu- (2) The letter head and copies of the models of forms ance of industrial estate permits and/or industrial as referred to in paragraph (1) are adjusted to the estate expansion permits done by provincial gov- authority of the authorized official. ernments. (2) Governor shall develop and supervise the issu- Article 41 ance of industrial estate permits and/or indus- The flow diagram of the procedure of issu- trial estate expansion permits done by provincial ing industrial estate permits and/or industrial estate governments done by regency/municipal govern- expansion permits used to implement this Ministerial ments. Regulation is contained in Attachment IV which is an (3) The development and supervision are conducted integral part of this Ministerial Regulation. 36 I Business News 8678/3-13-2015 CHAPTER XV TRANSITIONAL PROVISIONS

Article 42 (1) In-principle approval held by industrial estate company before this Ministerial Regulation took effect shall remain valid as one of the phases to secure an industrial estate permit based on this Ministerial Regulation. (2) Permanent industrial estate permit/industrial estate permit and/or industrial estate expansion permit held by industrial estate company before this Ministerial Regulation took effect shall remain valid as an industrial estate permit according to this Ministerial Regulation. CHAPTER XVI CONCLUSION

Article 43 With the coming into force of this Ministerial Regulation, all provisions on industrial estates and indus- trial companies operating in industrial estates shall remain valid, provided they do not contradict and have not been replaced based on this Ministerial Regulation.

Article 44 When this Ministerial Regulation begins to take effect: a. Decree of the Industry and Trade Minister No. 50/MPP/Kep/2/1997 on the Procedure of Issuing Industrial Estate Permits and Industrial Estate Expansion Permits, provided they are related to industrial estate per- mits, industrial estate expansion permits, and industrial estate orders; b. Decree of the Industry and Trade Minister No. 78/MPP/Kep/3/2001 on Guide to Minimum Service Standard (PSPM) in the Industrial and Trade Field as already amended by Decree of the Industry and Trade Minister No. 263/MPP/Kep/8/2001, provided they are related to industrial estate permits and industrial estate ex- pansion permits; and c. Circular of the Industry Minister No. 882/ M-IND/9/2007 dated September 19, 2007 to Governors/Re- gents/Mayors; are revoked and declared null and void. Business News 8678/3-13-2015 37

Article 45 This Ministerial Regulation shall begin to take effect on the date of promulgation. 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 13, 2014 THE INDUSTRY MINISTER OF THE REPUBLIC OF INDONESIA, sgd. MOHAMAD S. HIDAYAT Promulgated in Jakarta On February 17, 2014 THE LAW AND HUMAN RIGHTS MINISTER OF THE REPUBLIK INDONESIA, sgd. AMIR SYAMSUDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2014 NO. 224 Editor's Notes : - Attachments are not carried for technical reasons. (S) lt ‘1 Business News 867813-13-2015