DECREE OF THE MINISTER OF INDUSTRY AND TRADE. NO. 9/MPP/Kep/1/2004 DATED JANUARY 10, 2004 RULES ON IMPORT RICE

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1 DECREE OF THE MINISTER OF INDUSTRY AND TRADE NO. 9/MPP/Kep/1/2004 DATED JANUARY 10, 2004 RULES ON IMPORT RICE THE MINISTER OF INDUSTRY AND TRADE OF THE REPUBLIC OF INDONESIA, Considering : a. that, rice is a strategic commodity, i.e. as food for the Indonesian people so that the activities of production, provision, supply, and distribution of rice have become very important in the framework of food security, increase of revenues and welfare of rice farmers, and in the framework of stability of the need for consumption for the society, in general; b. that, for that purpose, a Decree of the said minister on rules on import of rice has been issued. In view of : 1. Bedrijfsreglementering Ordonnantie of 1934 ((Statute Book of 1938 No. 86), which has been amended and added; 2. Law No. 16/1992 on Animal, Fish and Plan Quarantines (Statute Book of 1992 No. 56, Supplement to Statute Book No. 3482); 3. Law No. 23/1992 on Health (Statute Book of 1992 No. 100, Supplement to Statute Book No. 3495); 4. Law No. 7/1994 on Ratification of Agreement Establishing The World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564); 5. Law No. 10/1995 on Customs Affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612); 6. Law No. 7/1996 on Food (Statute Book of 1996 No. 99, Supplement to Statute Book No. 3656); 7. Law No. 5/1999 on Prohibition of Monopoly Practice and Unfair Competition (Statute Book of 1999 No. 33, Supplement to Statute Book No. 3806); 8. Law No. 8/1999 on Consumer Protection (Statute Book of 1999 No. 42, Supplement to Statute Book No. 3821); 9. Government Regulation No. 68/2002 on Food Security (Statute Book of 2002 No. 142, Supplement to Statute Book No. 4254); 10. Presidential Decree No. 260/1967 on Confirmation of Duties and Responsibilities of Minister of Trade in the Field of Foreign Trading; 11. Presidential decree No. 228/M/2001 on Establishment of Gotong Royong (Mutual Cooperation) Cabinet; 12. Presidential Decree No. 102/2001 on Status, Duties, Functions, Authorities, Organizational Structures, and Work Procedures of Departments; 13. Presidential decree No. 109/2001 on Organizational Units and Duties of Echelon I of Departments; 14. Decree of the said Minister No. 229/MPP/Kep/7/1999 on General Provisions in the Field of Import; 15. Decree of the said Minister No. 230/MPP/Kep/7/1997 on Goods, which Import Procedure is Ruled as Amended Several Times and Latest by Decree of the said Minister No. 520/MPP/Kep/8/2003; 16. Decree of the said Minister No. 86/MPP/Kep/3/2001 on Organization and Work Procedures of Department of Trade and Industry; 17. Decree of the said Minister No. 141/MPP/Kep/3/2002 on Special Importer's Identification (NPIK); 19. Decree of the said Minister No. 40/MPP/Kep/1/2003 on Importer's Identification Number (API). DECIDES :

2 To stipulate : DECREE OF THE SAID MINISTER ON RULES ON IMPORT OF RICE In this Decree, the meaning of : 1. Rice is : Article 1 a. Peeled rice (paddy or unhulled rice) : - HS : others; b. Peeled unhulled rice : - HS : Thai hom mali rice; - HS : others; c. Rice, which is milled partly or entirely, husked, polished or not : - Beras wangi; - HS No : intact; - HS No : not more than 5% is broken; - HS No : more than 5% but less than 10% is broken; - HS No : more than 10% but less than 25% is broken; - HS No : others; - HS No : half-cooked rice; - HS No : basmati rice; - HS No : Thai hom mali rice; - Others; - HS No : intact; - HS No : not more than 5% is broken; - HS No : more than 5% but less than 10% is broken; - HS No : more than 10% but less than 25% is broken; - HS No : others; d. HS No : broken rice. 2. Importer is a company being holder of API that imports goods (either private or state/regional enterprise). 3. Recommendation is a letter issued by the institution/unit relevant to providing of technical information; and it shall not be construed as an import permit/approval. 4. Minister of the Minister of Trade and Industry. 5. Director General is the Director General for Foreign Trading of the Department of Trade and Industry. Article 2 Rice, as specified in Article 1 paragraph 1, shall only be imported by an importer who has obtained acknowledgement if Rice Importer & Producer (hereinafter called "IP Beras") and by an importer who has obtained an appointment as Registered Importer of Rice (hereinafter called "IT Beras"). Article 3 (1) The import of rice shall be prohibited within one (1) month prior to harvest, during harvest, and two (2) months after harvest.

3 (2) The stipulation of "harvest", as specified in paragraph (1), shall be done by the Minister of Agriculture. Article 4 (1) The introduction of imported rice by IP Beras and IT Beras, as specified in Article 2, may only be conducted during times other than those set forth in Article 3 paragraph (1). (2) The rice imported by IT Beras, as set forth in paragraph (1), may only be unloaded at the port of destination in accordance with the import approval granted by the Director General. Article 5 (1) Rice imported by IP Beras, as set forth in Article 2, may only be used as raw materials for process of production of the respective industry and shall not be sold-purchased or assigned to another party. (2) The acknowledgement as IP Beras, as specified in Article 2, shall be stipulated by the Director General. (3) To be acknowledged as IP Beras, as specified in paragraph (2), an importer must file a request, in writing, to the Director General, by enclosing : a. Copy of industrial business permit/industrial registration certificate or other similar business permits issued by the authorized institutions; b. Copy of Company Registration Certificate (TDP); c. Copy of Taxpayer's Code Number (NPWP); d. Copy of Importer & producer's Identification Number (API-P) or Limited Importer's Identification Number (API-T); e. Copy of Special Importer's Identification Number (NPIK); f. Recommendation from the Director General of Chemical Industry, Agriculture, and Forest Products (Director General of IKAH) of the Department of Trade and Industry. (4) The Acknowledgement of IP Beras relates to import approval, regarding quantity and type of rice, port of destination, and time of shipment. (5) The Acknowledgement of IP Beras, as set forth in paragraph (2), shall be applicable for a maximum period of one (1) year; and it can be extended. Article 6 (1) Upon written request of the importer, as specified in Article 5 paragraph (3), the Director General shall agree on the issuance of the Acknowledgement of IP Beras, or shall reject such request within ten (1) working days since receipt of the request, at the latest. (2) Format of the Acknowledgement of IP Beras is as set forth in Appendix I of this Decree. Article 7 (1) An importer who has obtained an Acknowledgement of IP Beras, must submit a report, in writing, regarding the import of rice and realization of its utilization to the Director General c.q. the Director of Import of the Department of Trade and Industry, every month, not later than the 15 th day of the following month of each month of import, with a copy furnished to the Director General of IKAH c.q. the Director of Agricultural Industry, Department of Trade and Industry. (2) Format of the report of the IP Beras, as set forth in paragraph (1), is as specified in Appendix II of this Decree. Article 8 (1) The appointment of IT Beras, as specified in Article 2, shall be stipulated by the Director General. (2) To be appointed as IT Beras, as set forth in paragraph (1), an importer must submit a request, in writing, to the Director General, by enclosing :

4 a. Copy of Trading Business Permit (SIUP) or other similar business permits issued by the authorized institutions; b. Copy of Company Registration Certificate (TDP); c. Copy of Taxpayer's Code Number (NPWP); d. Copy of General Importer's Identification Number (API-U); e. Copy of Special Importer's Identification Number (NPIK); f. Copy of Notification of Import of Goods (PIB) as evidence of experience in the field of import for, at least, three (3) years; g. Name and address of distributor/sub-distributor who cooperates with the importer to distribute rice locally, acknowledged by the local Provincial Service responsible in the field of trading (3) The appointment of IP Beras, as set forth in paragraph (1), shall be applicable for one (1) year, at the latest; and it can be extended. Article 9 (1) Upon request, in writing, of the importer, as specified in Article 8 paragraph (2), the Director General shall agree on the issuance of the Appointment of IT Beras or to reject such request, within ten (1) working days since receipt of such request, at the latest. (2) Format of the Appointment of IT Beras is as specified in Appendix III of this Decree. Article 10 (1) Every import of rice by IT Beras must have obtained a prior import approval from the Director General regarding quantity and type of rice, port of destination and time of importation. (2) The import approval, as set forth in paragraph (1), shall be issued after considering the recommendation of the Director General for the Management of Agricultural Product Processing and Marketing (BPPHP) of the Department of Agriculture. (3) Format of the import approval, as set forth in paragraph (2), is as specified in Appendix IV of this Decree. Article 11 (1) An importer who has had an Acknowledgement of IP Beras must submit a report regarding import of rice to the Director General c.q. the Director of Import of the Department of Trade and Industry, every month, not later than the 15 th day of the following month of import with copies furnished to the Director General for BPPHP c.q. the Director for the Management of Food Plant Processing and Marketing of the Department of Agriculture and the Director General of Home Trading c.q. the Director of Market and Distributions Development of the Department of Trade and Industry. (2) Format of the report from IT Beras, as set forth in paragraph (1), is as specified in Appendix V of this Decree. Article 12 (1) Every import of rice by IP Beras or IT Beras must first be verified or technically inspected in the country of loading. (2) The verification or technical inspection, as set forth in paragraph (1), shall also be applicable for import of : - Skinned rice suitable for seedlings (seeds), classified into HS No ; - Glutinous rice (pulut), classified into HS No ; - Rice flour, classified into HS No ; - Other kinds of flours classified into HS No (3) The verification or technical inspection, as set forth in paragraphs (1) and (2), shall be conducted by a surveyor appointed by the Minister.

5 (4) On the implementation of the verification or technical inspection, as set forth in paragraph (3), the surveyor may collect a fee from the importer/import institution/grantor in the framework of import of rice, skinned rice suitable for seedlings (seeds), glutinous rice (pulut), rice flour, and other kinds of flours. (5) To be appointed as conductor of the verification or technical inspection into the import of rice, skinned rice suitable for seedlings (seeds), glutinous rice (pulut), rice flour, and other kinds of flours, the surveyor must fulfill the following requirements : a. Having experience as a surveyor for at least five (5) years; b. Having branches or representative offices or affiliates in other countries. (6) Rules and procedure of implementation of the verification or technical inspection shall be stipulated by the Director General. Article 13 The obligation to implement verification or technical inspection, as set forth in Article 12, shall be declared inapplicable for import of rice, skinned rice suitable for seedlings (seeds), glutinous rice (pulut), rice flour, and other kinds of flours, which are : a. Required for technological research and development; b. Samples; c. Personal goods of passengers or transportation vehicle's crews or border crossers; d. Promotional goods; e. Goods shipped via courier service or by airplanes Article 14 (1) The acknowledgement of IP Beras or the Appointment of IT Beras will be frozen if the IP Beras or IT Beras : a. Does not perform the obligation of submitting the report, as set forth in Article 7 or 11 for two (2) times; or b. Under investigation into criminal acts related to the misuse of the Acknowledgement of IP Beras or Appointment of IT Beras. (2) The freezing of the Acknowledgement of IP Beras or Appointment of IT Beras can be withdrawn after the IP Beras or IT Beras has obtained clarifications from the Director General regarding his or her failure in implementing the obligation as set forth in Article 7 or 11, or if he or she has not been proven as committing criminals acts related to the misuse of the Acknowledgement of IP Beras or Appointment of IT Beras. (3) The freeze of the Acknowledgement of IP Beras or Appointment of IT Beras, as set forth in paragraph (1), or the withdrawal of the foregoing, as set forth in paragraph (2), shall be conducted by the Director General. Article 15 (1) The Acknowledgement of IP Beras or Appointment of IT Beras will be revoked, if the IP Beras or IT Beras: a. Does not perform the obligation of submitting the report, as set forth in Article 7 or 11 for more than two (2) times; b. Changes and or adds and or replaces the content of the Acknowledgement of IP Beras or Appointment of IT Beras or the Approval for Import of Rice; or c. Is declared guilty by the court with regard to the criminal acts related to the misuse of the Acknowledgement of IP Beras or Appointment of IT Beras. (2) The revocation of the Acknowledgement of IP Beras or Appointment of IT Beras, as set forth in paragraph (10), shall be conducted by the Director General.

6 Article 16 An importer who imports rice, and its rice has arrived at the port of destination in the Indonesian territory, on January 20, 2004, at the latest, shall not be imposed by the rules set forth in this Decree. Article 17 The verification or technical inspection conducted by the surveyor shall not reduce the authority of the Director General of Customs and Excise to perform customs inspection. Article 18 (1) In the framework of monitoring over the enforcement of this Decree, a Monitoring Team, which members consist of the related institutions, has been established. (2) Organizational & membership structures and duties of the Monitoring Team shall be decided by the Director General. Article 19 Exemptions from the provisions of this Decree may only be stipulated by the Minister. Article 20 This decree shall come into effect from the date of stipulation. For public cognizance, this Decree shall be published by placing it in the State Gazette of the Republic of Indonesia. Stipulated in Jakarta On January 10, 2004 MINISTER OF TRADE AND INDUSTRY Sgd. RINI M SUMARNO SOEWANDI

7 Appendix I ACKNOWLEDGEMENT OF RICE IMPORTER & PRODUCER No. : Re Application No... dated and perusing the recommendation of Director General of IKAH of Department of Trade and Industry No... dated., pursuant to Decree of the Minister of Trade and Industry No.. dated.., on Rules on Import of Rice, I hereby grant approval of the acknowledgement of : To : Company's Name/Status : Business : Company's Address : Person Responsible : Phone/Fax No. : Industrial Business Permit No. : Limited Importer & Producer's Identification/ : No. (API-P/T) Special Importer's Identification No. (NPIK) : Company Registration Certificate (TDP) No. : Taxpayer's Code No. (NPWP) : Port of Destination : RICE IMPORTER & PRODUCER (HS No. ) QUANTITY OF GOODS :.. ( ) Ton In accordance with the following conditions : 1. The rice shall only be needed for. and shall not be sold-purchased or transferred to another party; 2. You must show the original sheet of this Import Approval to the customs and excise officer for every import of goods for the completion of the Import Realization Control Card (attached) containing verification into quantity and type of imported goods; 3. You must submit a photocopy of the Import Realization Control Card, as set forth in paragraph (2), which has been initialed and chopped by the customs and excise officer, to the Directorate of Import for every import of goods, in two (2) weeks since loading of goods from port of destination, at the latest; 4. Violations against rules on the obligation to submit report can be sanctioned by freeze of Acknowledgement of IP Beras; 5. The Acknowledgement of IP Beras will be revoked if you change, add, and/or replace the content of the said Acknowledgement of IP Beras and are declared guilty by the court as a result of criminal acts related to the misuse of the Acknowledgement of IP Beras; 6. The Acknowledgement of this IP Beras shall be applicable up to (date) Jakarta, DIRECTOR GENERAL OF FOREIGN TRADING

8 Cc : - Minister of Trade and Industry; - Director General of IKAH, Department of Trade and Industry; - Director General of BPPHP, Department of Agriculture; - Inspector General of Department of Trade and Industry; - Director General of Customs and Excise, Department of Finance; - Head of Trade and Industry Service of Province of.. Appendix II REPORT ON REALIZATION AND USAGE OF IMPORT OF RICE (IP-BERAS) (Month :... Year..) Company's Name : Address of Company's : Headquarter Factory's Address : Acknowledgement of IP Beras : No... Date : Quantity : HS No. : Port of Loading : No. Realization of Import PIB Quantity No. Volume Value Realization of Usage Realization of Production Note Jakarta,.. PT/CV (Director)

9 Appendix III APPOINTMENT OF REGISTERED IMPORTER OF RICE No. : Re Application No.. dated.., Re.. and pursuant to Decree of the Minister of Trade and Industry No.. dated.. on Rules on Import of Rice, I hereby grant approval on the appointment of : To : Company s Name/Status : Business : Company's Address : Person Responsible : Phone/Fax No. : Industrial Business Permit No. : General Importer's Identification No. (API-U) : Special Importer's Identification No. (NPIK) : Company Registration Certificate (TDP) No. : Taxpayer's Code No. (NPWP) : REGISTERED IMPORTER OF RICE In accordance with the following conditions : a. The Appointment of Registered Importer of Rice shall not be construed as an Import Approval; b. Shall report any amendments of profile of the company to the Director General of Foreign Trading within thirty (30) days after such amendments, at the latest; c. Shall provide data/information and or is willing to be inspected on site (location of business/office) if required by the authorized official of the Department of Trade and Industry; d. This Appointment of Registered Importer of Rice shall be applicable up to (date); e. Violations against the rules set forth in paragraphs a to d can be sanctioned by freeze, cancellation of Approval of Import of Rice, or revocation of Appointment of Registered Importer of Rice. Jakarta, DIRECTOR GENERAL OF FOREIGN TRADING Cc : - Minister of Trade and Industry; - Director General of IKAH, Department of Trade and Industry; - Director General of BPPHP, Department of Agriculture; - Inspector General of Department of Trade and Industry; - Director General of Customs and Excise, Department of Finance; - Head of Trade and Industry Service of Province of..

10 Appendix IV No. : Jakarta, Enclosures : Re : Approval of Import of Rice Attn. Director Pursuant to Decree of Minister of Trade and Industry No... dated., on Rules on Import of Rice and letter of application of PT. No... dated., Re : the foregoing subject matter, I'd like to inform you that PT., as holder of : Registered Importer of Rice (IT Beras) No. : Industrial Business Permit (SIUP) No. : General Importer's Identification No. (API-U) : Special Importer's Identification No. (NPIK) : Company Registration Certificate (TDP) No. : Taxpayer's Code No. (NPWP) : Has been agreed to import : - Type of rice : - HS No. : - Quantity : - Port of Destination : In accordance with the following conditions : 1. The import of rice must be in compliance with the applicable rules on customs procedure; 2. You must show the original sheet of this Import Approval to the customs and excise officer for every import of rice for the completion of Import Realization Control Card (attached) containing verification into quantity and type of rice that will be imported; 3. You must submit a photocopy of the Import Realization Control Card, as set forth in paragraph (2), which has been initialed and chopped by the customs and excise officer, to the Directorate of Import for every import of goods, within two (2) weeks after loading of goods from port of destination, at the latest; 4. Violations against rules on the obligation to submit report can be sanctioned by freeze of Acknowledgement of IT Beras; 5. The Approval of Import of Rice will be canceled if you change, add, and/or replace the content of the Approval of Import of Rice; 6. This Approval shall be applicable up to.. (date). Please be informed accordingly. DIRECTOR GENERAL OF FOREIGN TRADING Cc : - Minister of Trade and Industry; - Director General of IKAH, Department of Trade and Industry; - Director General of BPPHP, Department of Agriculture; - Inspector General of Department of Trade and Industry; - Director General of Customs and Excise, Department of Finance; - Head of Trade and Industry Service of Province of..

11 Appendix V REPORT ON REALIZATION AND USAGE OF IMPORT OF RICE (IT-BERAS) Company's Name : Address of Company's Headquarter : Appointment of IT Beras : No. Date : Approval of Import of Rice : No. Date : Quantity : HS No. : Port of Unloading : No. Realization of Import Quantity PIB Volume Value No. Realization of Distribution Company's Name Address Quantity Note Jakarta PT/CV (Director)