LAW OF THE REPUBLIC OF INDONESIA NUMBER 28 YEAR 2009 CONCERNING LOCAL TAXATION AND CHARGES WITH THE BLESSING

OF THE ONE AND ONLY GOD ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering: a. whereas the united State of the Republic of Indonesia constitutes a legal state based on Pancasila and the 1945 Constitution of the Republic of Indonesia, with the purpose to create a living structure for a nation that is safe, orderly, prosperous and just; b. whereas with the enforcement of Law No 32 of 2004 concerning Regional Government as has been amended several times lastly by Law Number 12 of 2008 concerning Second Amendment to Law Number 32 of 2004 concerning Regional Government and Law Number 33 of 2004 concerning Balanced Finances between the Central Government and the Regional Government, therefore the administration of the regional government is carried out by conferring the broadest authorization, accompanied by the provision of rights and obligations in administering regional autonomy in an integrated system of administering the state government;

c.

whereas local taxation and charges constitute important sources of income for a region in order to finance the implementation of regional government;

d.

whereas in order to improve services to the public and for regional independence, it is necessary to carry out expansion of local taxation and charges objects and to provide discretion in the determination of tariff;

e.

whereas policies for local taxation and charges are carried out based on the principles of democracy, quality and fairness, public participation, and accountability with due observance to local potential;

f.

whereas Law Number 8 of 1997 concerning Local taxation and charges as has been amended by Law Number 34 of 2000 concerning Amendment to Law Number 18 of 1997 concerning Local taxation and charges, needs to be adjusted with the policies of regional autonomy;

g.

whereas based on the considerations as referred to in letter a, letter b, letter c, letter d, letter e, and letter f, it will be necessary to establish a Law concerning Local taxation and charges;

With reference to: Article 5 paragraph (10, Article 18,

Article 18A, Article 18B, Article 20 paragraph (2), Article 22D, and Article 23A of the 1945 Constitution of the Republic of Indonesia; With Joint Approval THE PEOPLES REPRESENTATIVES OF THE REPUBLIC OF INDONESIA And THE PRESIDENT OF THE REPUBLIC OF INDONESIA HAVE DECIDED: To determine: A LAW CONCERNING LOCAL TAXATION AND CHARGES.

CHAPTER I GENERAL PROVISIONS Article 1 In this Law, the definition of: 1. Autonomy Region, hereinafter referred to as Region, shall mean a unity of legal communities with territorial borders, authorized to organize and tend to matters of the government and the interest of the local communities in accordance with their own initiatives based on

community aspirations within the system of the united State of the Republic of Indonesia. 2. Central Government, hereinafter referred to as

Government, shall mean the President of the Republic of Indonesia who holds the authority of the state government of the Republic of Indonesia as referred to in the 1945 Constitution of the State of the Republic of Indonesia. 3. Regional Government shall mean the administering of government matters by the Regional Government and the Regional Peoples Representatives in accordance with the principles of autonomy and Duty of Assistance with the broadest principles of autonomy within the system and the principles of the united State of the Republic of Indonesia as referred to in the 1945 Constitution of the Republic of Indonesia. 4. Regional Government shall mean the governor, district head, or mayor, and Regional apparatus as elements administering Regional Governments. 5. Regional Peoples Representatives, as an hereinafter element in

abbreviated to DPRD, shall mean the regional peoples representatives institution administering Regional Governments.

6.

Regional Head shall mean the governor for provincial Regions or the district head for Regional districts or mayor for Regional towns.

7.

Official shall mean the employee designated with certain duties in the field of local taxes and/or local charges in accordance with statutory regulations.

8.

Regional Regulations shall mean statutory regulations established by the provincial DPRD and or regional district/town with the joint approval of the Regional Head.

9.

Regional Head Regulations shall mean Governor Regulations and/or District Head/Mayor Regulations.

10.

Local Tax, hereinafter referred to as Tax, shall mean obligatory contribution to the Region owed by private individuals or entities of enforced nature based on the Law, without receiving direct compensation and used for the needs of the Region mostly for the welfare of the people.

11.

Entity shall mean a group of people and/or capital that constitutes a unity, whether doing business or not doing business covering, limited liability companies,

partnership companies, other companies, state owned entities (BUMN) or regional entities (BUMD), with any name and in any form, firms, joint ventures, cooperatives, pension funds, associations, groups, foundations, mass organizations, socio-political organizations, or other organizations, institutions and other forms of entities including collective investment contracts and permanent business entities. 12. Motor Vehicle Tax shall mean tax on ownership and/or control of motor vehicles. 13. Motor vehicles shall mean all wheeled vehicles with their trailers used on all types of land roads and moved by technical equipment in the form of motors or other equipment with the function to change a certain source of energy to become power to move the relevant motor vehicles, including heavy equipment and large equipment that in their operations use wheels and motors and are not affixed permanently, as well as motor vehicles operated on water. 14. Excise for Transferring Ownership of Motor Vehicle shall mean tax on transfer of right of ownership of motor vehicles as a consequence of an agreement between two parties or a one-sided action or a situation that occurs due to a sale purchase, an exchange, a grant, a

heritage, or incorporation into a business entity. 15. Motor Vehicle Fuel Tax shall mean tax on the use of liquid or gas fuel used for motor vehicles. 16. Fuel for Motor Vehicles shall mean all types of liquid or gas fuel used for motor vehicles. 17. Surface Water Tax shall mean tax on the removal and/or use of surface water. 18. Surface water shall mean all water available on ground surface, excluding seawater, whether at sea or on land. 19. Cigarette tax shall mean collection on cigarette levies collected by the Government. 20. Hotel tax shall mean tax on services provided by

hotels. 21. Hotels shall mean facilities of services providers covering covering services motels, for inns, accommodation/rest tourist cottages, including tourist other related services with a collection of payment, hostels, lodgings, bed-and-breakfasts and other similar types, as well as rooms for rent with a total of more

than 10 (ten) rooms. 22. Restaurant tax shall mean tax for services provided by restaurants. 23. Restaurants shall mean facilities of providers of food and/or beverages with a collection of payment, which also covers restaurants, cafeterias, canteens, foodstalls, bars, and similar types including catering services. 24. Entertainment tax shall mean tax on the organization of entertainment. 25. Entertainment performances, shall games mean and/or all types of shows, by

festivities

enjoyed

collecting payment. 26. Advertising tax shall mean tax on the placement of advertisements. 27. Advertisements shall mean things, tools, acts or media that in forms and varieties of types are designed for commercial purposes to introduce, suggest, promote, or to attract public attention to the goods, services, persons, or entities, which can be seen, read, heard, felt, and/or enjoyed by the public.

28.

Street Lighting Tax shall mean tax on the use of electricity, whether self-produced or acquired from other sources.

29.

Tax on Non-Metal Mineral and Rock shall mean taxes on activities in the removal of non-metal minerals and rocks, for use whether from natural sources within and/or on ground surface.

30.

Non Metal and Non-Rock Minerals are minerals that are non-metal and non-rock as referred to in the statutory regulations in the field of minerals and coal.

31. Parking tax shall mean tax on operating parking lots beyond roads, whether provided in relation to a main business or provided as a business, including the provision of location for temporary entrustment of motor vehicles. 32. Parking shall mean the temporary condition of a motor vehicle that is stationary. 33. Ground Water tax shall mean tax on the removal and/or use of ground water. 34. Ground water shall mean water found in layers of ground

or rocks below ground surface. 35. Swallows nests. 36. Swallows shall mean fauna included in the collocalia species, namely collocalia fuchliap haga, collocalia maxina, collocalia esculanta, and collocalia linchi. 37. Rural and Urban Land and Building Tax shall mean tax on land and/or buildings owned, controlled and/or used by private persons or Entities, with the exception of land used for the business activities of plantations, forestry, and mining. 38. Land shall mean ground surface covering land and inland waters as well as sea in district/town areas. 39. Buildings shall mean technical constructions permanently erected on or affixed to land and/or in-land waters and/ or sea. 40. Tax Object Sale Value, hereinafter abbreviated to Nests Tax shall mean tax on activities

related to the removal and/or exploitation of swallows

NJOP, shall mean the average price acquired from the occurrence of a normal sale purchase transaction, and should there be no sale purchase transaction, the NJOP

shall be determined through the price comparison with other similar type objects, or a newly acquired value, or a substitute NJOP. 41. Excise on Acquirement of Right on Land and Building shall mean tax on acquirement of right on land and/or building. 42. Acquirement of Right on Land and/or Building shall mean a legal action or event resulting in the acquiring of right on land and/or building by a private person or Entity. 43. Right on Land and/or Building shall mean right on land, including the right of managing such, as well as buildings on such, as referred to in the law concerning lands and buildings. 44. Tax Subjects shall mean taxable private persons or Entities. 45. Taxable Subjects shall mean private persons or Entities, covering tax payers, persons deducting taxes, persons collecting taxes, with tax rights and obligations in accordance with the rules as per regional statutory regulations.

46.

Tax Period shall mean a period of 1 (one) calendar month or another period regulated by Regional Head Regulation for a maximum of 3 (three) calendar months, which becomes the basis for Taxable Subjects to calculate, remit and report on owed taxes.

47.

Tax Year shall mean a period of time lasting 1 (one) calendar year, unless the Taxable Subject uses a fiscal year dissimilar to the calendar year.

48.

Owed Taxes shall mean taxes that must be paid at a time during the Tax Period, in a Tax Year, or in a Part of a Tax Year in accordance with the provisions of statutory regulations on local taxes.

49.

Collection shall mean a series of activities commencing from accumulation of object data and tax subjects or charges, the determination of amount of taxes or charges owed up to the activities of tax or retribution collection thereof. towards Taxable Subjects or parties to pay charges as well as the supervision of payments

50.

Letter

of

Notification

on

Local

Taxes

hereinafter

abbreviated to SPTPD, shall mean a letter that by Taxable Subjects are used to report the calculation and/or tax payment, tax object and or non-tax object

and or assets and liabilities in accordance with the provisions of statutory regulations on local taxes. 51. Letter of Notification of Tax Object, hereinafter

abbreviated to SPOP, shall mean a letter used by the Taxable Subject to report subject and object data on Rural and Urban Land and Building Tax in accordance with the provisions in statutory regulations on local taxes. 52. Letter of Local Tax Payment, hereinafter abbreviated to SSPD, shall mean evidence of payment or remittance of taxes carried out by using a form or carried out in another manner to the local treasury through the location of payment designated by the Regional Head. 53. Letter of Determination of Local Taxes, hereinafter abbreviated to SKPD, shall mean a letter of determination of taxes that determines the principal amount of taxes owed. 54. Letter of Notification of Owed Taxes, hereinafter

abbreviated to SPPT, shall mean a letter used to inform the amount of Rural and Urban Land and Building owed, to Taxable Subjects. 55. Letter of Determination of Local Taxes Insufficiently

Paid, hereinafter abbreviated to SKPDKB, shall mean a letter determining the amount of principal taxes, total credited taxes, total amount of insufficiently paid principal taxes, the amount of administrative sanctions, and total taxes still owed. 56. Letter of Statement of Additional Local Taxes

Insufficiently Paid, hereinafter abbreviated to SKPDKBT, shall mean a letter of determination of taxes determining additions to the total determined amount of taxes. 57. Letter of Determination of Zero Local Taxes, hereinafter abbreviated to SKPDN, shall mean a letter of determination of taxes determining total principle taxes equal to total tax credit or un-owed taxes and no tax credit. 58. Letter of Determination of Local Taxes Paid In Excess, hereinafter abbreviated to SKPDLB, shall mean a letter of determination of taxes determining total amount of taxes paid in excess since total tax credits are higher than owed taxes or should not be owed. 59. Local Tax Collection Letter, hereinafter abbreviated to STPD, shall mean a letter to collect taxes and/or administrative sanctions in form of interest and/or fines.

60.

Letter of Decision of Correction shall mean a letter of decision that corrects typos, errors in calculations and/or mistakes in the application of certain provisions in the statutory regulations of local taxes contained in the Letter of Notification of Owed Taxes, Letter of Determination on Local Taxes, Letter of Determination of Taxes Insufficiently Paid, Letter of Decision on Additions to Insufficiently Paid Local Taxes, Letter of Determination of Zero Local Taxes, Letter of Determination of Local Taxes Paid In Excess, Letter of Collection of Local Taxes, Letter of Decision on Corrections, or Letter of Decision of Objection.

61.

Letter of Decision of Objection shall mean a letter of decision on objection against Letter of Notification of Owed Taxes, Letter of Determination on Local Taxes, Letter of Determination of Taxes Insufficiently Paid, Letter of Decision on Additions to Insufficiently Paid Local Taxes, Letter of Determination of Zero Local Taxes, Letter of Determination of Local Taxes Paid In Excess, or against deductions or collections by third parties, submitted by Taxable Subjects.

62.

Decision of Appeal shall mean a decision of a tax court against a Letter of Decision of Objection submitted by Taxable Subjects,

63.

Book-keeping shall mean a process of recording carried out in an organized manner to collect data and financial information covering, assets, liabilities, capital, income and expenses, as well as total acquired price and delivery of goods or services, which is closed by a compilation of a financial statement in form of balance sheet and profit and loss statement for the period of such Tax Year.

64.

Local Charges hereinafter referred to as Charges shall mean Local collections as payment for services or granting of certain permits specifically provided and/ or given by the Regional Government for the interests of private persons or Entities.

65.

Services shall mean activities of the Regional Government in form of efforts and services that cause goods, facilities or other benefits to be enjoyed by private persons or Entities.

66.

Public Services shall mean services provided or given by the Regional Government for the purpose of public interest and use that can be enjoyed by private persons or Entities.

67.

Business Services shall mean services provided by the Regional Government by adopting commercial principles

since basically such can also be provided by the private sector. 68. Certain Permits shall mean certain activities of the Regional Government in the framework of granting permit to private persons and Entities referred to as guidance, regulation, control and supervision over activities, space usage, as well as the use of natural resources, goods, infrastructure, facilities or certain facilities in order to protect public interests and safeguard the preservation of the environment. 69. Those subject to charges shall mean private persons or Entities that according to the statutory regulations on charges are required to carry out payments of charges, including charges. 70. Period of Retribution shall mean a certain period of time that constitutes the deadline/time limit for those subject to charges to use certain services and permits from the relevant Regional Government. 71. Letter of Local Retribution Payment, hereinafter parties that collect or deduct certain

abbreviated to SSRD, shall mean evidence of payment or remittance of retribution carried out by using a form or carried out in another manner to the local treasury

through the location of payment as designated by the Regional Head. 72. Letter of Determination of Local Retribution,

hereinafter abbreviated to SKRD, shall mean a letter of determination of retribution that determines the total principal retribution owed. 73. Letter of Determination of Local Retribution Paid In Excess, hereinafter abbreviated to SKRDLB, shall mean a letter of determination of retribution that determines the amount of retribution paid in excess since the total retribution credit is higher than the owed retribution or should not be owed. 74. Letter of Collection of Local Retribution, hereinafter abbreviated to STRD, shall mean a letter to collect retribution and/or administrative sanctions in form of interest and/or fines. 75. Audit shall mean a series of activities in collecting and processing data, information, and/or evidence that is carried out in an objective and professional manner based on a standard of audit to test the compliance in the fulfillment of local taxation and charges obligations and/or for other purposes in the framework to carry out the provisions of statutory regulations on local

taxation and charges. 76. Criminal investigations in the field of local taxation and charges shall mean a series of actions carried out by Investigators to seek and collect evidence which through such evidence shall bring to light any criminal acts in the field of local taxation and charges that occurred as well as finding the wrongdoers. CHAPTER II TAXES First Part Types of Taxes Article 2 (1) Types of provincial Taxes consist of: a. b. c. d. e. (2) Motor Vehicle Tax; Excise/Tax For Transfer of Ownership of Motor Vehicle; Motor Vehicle Fuel Tax; Surface Water Tax; Cigarette Tax.

Types of district/town taxes consist of: a. Hotel Tax;

b. c. d. e. f. g. h. i. j. k.

Restaurant Tax; Entertainment Tax; Advertising Tax; Street Lighting Tax; Tax on Non-Metal Mineral and Rock; Parking Tax; Ground Water Tax; Tax on Swallows Nests; Rural and Urban Land and Building Tax; Excise/Tax Building. for Acquiring Right on Land and

(3)

Regions are prohibited from collecting taxes other than types of Taxes as referred to in paragraph (1) and paragraph (2).

(4)

Types of Taxes as referred to in paragraph (1) and paragraph (2) can remain uncollected if the potential is less than adequate and/or adjusted with Regional policy promulgated by Regional Regulation.

(5)

Specifically for Regions of the same level as provincial regions, which however are not divided into district/ town regions with autonomy, the types of taxes that can be collected shall constitute a consolidation of Taxes for provincial regions and Taxes for district/ town regions.

Second Part Motor Vehicle Tax Article 3 (1) The object of Motor Vehicle Tax shall be the ownership and/or the control over Motor Vehicles. (2) Included in the interpretation of Motor Vehicles as referred to in paragraph (1) are wheeled motor vehicles together with their trailers, which are operated on all types of land roads and motor vehicles that are operated on water with a volume measurement of GT 5 (5 Gross Tonnage) up to GT 7 (7 Gross Tonnage). (3) Exceptions from the interpretation of Motor Vehicles as referred to in paragraph (2) are: a. b. c. trains; Motor Vehicles that are solely used for the States Defense and Security; Motor Vehicles owned and/or controlled by embassies, consulates, foreign country representatives on the principle of reciprocity and international institutions that are provided with tax exemption facilities by the Government; and d. other Tax objects as promulgated by Regional

Regulation. Article 4 (1) The Tax Subjects for Motor Vehicles shall be private persons or Entities owning and/or controlling Motor Vehicles. (2) (3) The Taxable Subjects for Motor Vehicles shall be private persons or Entities owning Motor Vehicles. In the case of Tax Subjects in the form of Entities, the management or proxy of such Entities shall represent the tax obligations. Article 5 (1) The basis for imposition of Motor Vehicle Tax shall be the result of multiplication of 2 (two) main elements: a. b. The Sale Value of the Motor Vehicle; and the weight that relatively reflects the level of road damages and/or pollution of the environment as a consequence of using Motor Vehicles. (2) Specifically for Motor Vehicles used beyond public

roads, including heavy equipment and large equipment as well as vehicles on water, the basis for imposition of Motor Vehicle Tax shall be the Sale Value of the Motor Vehicle.

(3)

The weight as referred to in paragraph (1) letter b is declared in coefficient with a value of 1 (one) or more than 1 (one), with the following interpretation: a. a coefficient equal to 1 (one) shall mean the road damages and/or pollution of the environment caused by the usage of such Motor Vehicle are deemed to be still within the limits of tolerance; and b. a coefficient larger than 1 (one) shall mean the use of such Motor Vehicle is deemed to have surpassed the limits of tolerance.

(4)

The Sale Value of a Motor Vehicle is determined based on the General Market Price of a Motor Vehicle.

(5)

The General Market Price as referred to in paragraph (4) is the average price acquired from various accurate data sources.

(6)

The Sale Value of a Motor Vehicle as referred to in paragraph (4) is determined based on the General Market Price in the first week of the month of December of the previous Tax Year.

(7)

In the event the General Market Price of a Motor Vehicle is unknown, the Sale Value of a Motor Vehicle can be determined based on a part of or all the following

factors: a. b. c. d. e. f. g. The price of a Motor Vehicle with similar cylinder content and/or power unit; the use of Motor Vehicles for public or private use; the price of a Motor Vehicle with the same brand; the price of a Motor Vehicle with the same year of manufacturing; the price of a Motor Vehicle with manufacturer of the Motor Vehicle; the price of a Motor Vehicle of the same type; the price of a Motor Vehicle based on the Notification of Import of Goods document (PIB). (8) The Weight as referred to in paragraph (1) letter b is calculated based on the following factors: a. pressure of wheel axle, which is differentiated on the basis of total axis, wheels and weight of Motor Vehicle; b. type of fuel used by Motor Vehicle, which is differentiated according to diesel oil, oil-based fuel, gas, electricity, solar energy, or other types of fuel; and c. type, use, year of manufacture, and characteristics of Motor Vehicle engine based on 2-cycle or 4-cycle engines, and cylinder content.

(9)

The basic calculation for the imposition of Motor Vehicle Tax as referred to in paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), and paragraph (8) is stated in a table promulgated by Regulation of the Minister of Home Affairs after acquiring the consideration of the Minister of Finance.

(10) The basic calculation for the imposition of Motor Vehicle Tax as referred to in paragraph (9) is reviewed every year. Article 6 (1) The Tariff for private Motor Vehicle Tax is determined as follows: a. for ownership of first Motor Vehicle, the lowest shall be 1% (one percent) and the highest shall be 2% (two percent); b. for ownership of second Motor Vehicle and so on, the tariff can be determined in a progressive manner the lowest being 2% (two percent) and the highest being 10% (ten percent). (2) Ownership of Motor Vehicles is based on the same name and/or address.

(3)

The tariff of Motor Vehicle Tax for public transportation, ambulances, religious Indonesian fire-engines, motor vehicles for sociomotor other affairs, Police, socio-religious Regional vehicles, and

vehicles of the Government/Indonesian Armed Forces/ Governments, vehicles as determined by the Regional Government, is determined to be the lowest at 0.5% (zero point five percent) and the highest at 1% (one percent). (4) The tariff of Motor Vehicle Tax for heavy equipment and large equipment is determined to be the lowest at 0.1% (zero point one percent) and the highest at 0.2% (zero point two percent). (5) The tariff Motor Vehicle Tax is promulgated by Regional Regulation. Article 7 (1) The principal range of Motor Vehicle Tax owed is

calculated by manner of multiplying the tariff as referred to in Article 6 paragraph (5) with the basic imposition of taxes as referred to in Article 5 paragraph (9). (2) Taxes on Motor Vehicles owed are collected in the

regional

territories

where

the

Motor

Vehicles

are

registered. (3) Collection of Tax on Motor Vehicles is carried out simultaneously with the issuance of Letter of License Number for Motor Vehicle (STNK). (4) Collection of taxes the following year shall be carried out at the regions treasury or bank as designated by the Regional Head. Article 8 (1) Tax on Motor Vehicles are imposed for a Tax Period of 12 (twelve) consecutive months calculated from the time of registration of the Motor Vehicles. (2) (3) Tax on Motor Vehicles is paid all at once in advance. For Motor Vehicles that due to Force Majeure have Tax Periods of less than 12 (twelve) months, restitution on taxes can be made on taxes already paid for the portion of the Tax Year not undertaken. (4) Further provisions concerning procedures for the

implementation of restitution are arranged by Governor Regulation.

(5)

From the proceeds of receipt of Tax on Motor Vehicles, at least 10% (ten percent), including profit sharing with the district/town, shall be allocated for development and or maintenance of roads and improvement of mode and facilities for public transportation. Third Part Excise/Tax for Transfer of Ownership of Motor Vehicles Article 9

(1)

The Tax Object for Excise/Tax for Transfer of Ownership of Motor Vehicles shall be the delivery of ownership of Motor Vehicles.

(2)

Included in the meaning of Motor Vehicles as referred to in paragraph (1) are motor vehicles and their trailers, which are operated on all types of land roads and motor vehicles operated on water with a volume measurement of GT 5 (5 Gross Tonnage) up to GT 7 (7 Gross Tonnage).

(3)

Exempted from the meaning of Motor Vehicles as referred to in paragraph (2) are: a. b. trains; Motor Vehicles that are solely used for the States

Defense and Security; c. Motor Vehicles owned and/or controlled by embassies, consulates, foreign country representatives on the principle of reciprocity and international institutions that are provided with tax exemption facilities by the Government; and d. other Tax objects as promulgated by Regional Regulation. (4) Control over a Motor Vehicle for more than 12 (twelve) months can be deemed as a delivery. (5) Control over a Motor Vehicle as referred to in paragraph (4) excludes the control over Motor Vehicles due to sale purchase agreements. (6) Included in the delivery of Motor Vehicles as referred to in paragraph (1) shall be the import of Motor Vehicles from overseas for permanent use in Indonesia, with the exception of: a. b. c. d. for personal use by the concerned private person; for trading; for re-export from the customs territory of Indonesia; for use in exhibitions, research, as sample, and for international-class sports.

(7)

Exceptions as referred to in paragraph (6) letter c shall not apply if during 3 (three) consecutive years there is no re-export from the customs territory of Indonesia. Article 10

(1)

The Tax Subjects for Excise/Tax on Transfer of Ownership of Motor Vehicles shall be private persons or Entities that are able to receive delivery of Motor Vehicles.

(2)

Taxable Subjects for Excise/Tax on Transfer of Ownership of Motor Vehicles shall be private persons or Entities receiving delivery of Motor Vehicles. Article 11

The basis for imposition of Excise/Tax on Transfer of Ownership of Motor Vehicles shall be the Sale Value of Motor Vehicle as referred to in Article 5 paragraph (9). Article 12 (1) The Tariff for Excise/Tax on Transfer of Ownership of Motor Vehicles shall be determined at the highest respectively as follows:

a. b.

first delivery, the amount of 20% (twenty percent); and second delivery and so forth, the amount of 1% (one percent).

(2)

Specifically for Motor Vehicles such as heavy equipment and large equipment that do not use public roads the tax tariff shall be determined the highest respectively as follows: a. b. first delivery, the amount of 0.75% (zero point seventy five percent); and second delivery and so forth, the amount of 0.075% (zero point zero seventy five percent).

(3)

The Tariff for Excise/Tax on Motor Vehicles is promulgated by Regional Regulation. Article 13

(1)

The

Principal

Range

of

Excise/Tax

on

Transfer

of

Ownership of Motor Vehicles owed is calculated by manner of multiplying the tariff as referred to in Article 12 paragraph (3) with the basis of imposition of taxes as referred to in Article 11. (2) Excise/Tax for Transfer of Ownership of Motor Vehicles owed is collected at the regional territory where the

Motor Vehicles are registered. (3) Payment of Excise/Tax on Transfer of Ownership of Motor Vehicles is carried out at the time of registration. Article 14 Tax Subjects for Excise/Tax on Transfer of Ownership of Motor Vehicles are required to register the delivery of Motor Vehicles the latest within 30 (thirty) working days from the time of delivery.

Article 15 (1) Private persons or Entities delivering Motor Vehicles shall report in writing such deliveries to the governor or the designated official within a period of 30 (thirty) working days from the time of delivery. (2) The written report as referred to in paragraph (1), shall at least contain: a. b. c. name and address of private person or Entity receiving delivery; date, month and year of delivery; police license number of the motor vehicle;

d. e.

attached photocopy of the Letter of License Number for Motor Vehicle (STNK); and specifically for motor vehicles on water, additionally passes and vessel passes numbers. Fourth Part Motor Vehicle Fuel Tax

Article 16 Tax Objects for Fuel of Motor Vehicles shall be Fuel for Motor Vehicles provided or deemed to be used for motor vehicles, including fuel used for vehicles on water. Article 17 (1) Tax subjects for Fuel of Motor Vehicles shall be

consumers of Fuel for Motor Vehicles. (2) Taxable subjects for Fuel of Motor Vehicles shall be private persons or Entities using Fuel for Motor Vehicles. (3) Collection of Motor Vehicle Fuel Tax shall be carried out by the providers of Fuel for Motor Vehicles. (4) Providers of Fuel for Motor Vehicles as referred to in

paragraph (3) shall be producers and/or importers of Fuel for Motor Vehicles, whether for sale or for own use.

Article 18 The basis for imposition of Motor Vehicle Fuel Tax shall be the Sale Value of Fuel for Motor Vehicles prior to being imposed with Value Added Tax. Article 19 (1) The Tariff for Motor Vehicle Fuel Tax is determined at the highest to be 10% (ten percent). (2) Specifically for the tariff of Motor Vehicle Fuel Tax for public vehicles fuel, this can be determined at the lowest to be 50% (fifty percent) lower than the tariff for Motor Vehicle Fuel Tax for private vehicles. (3) The Government can change the tariff for Motor Vehicle Fuel Tax already determined in a Regional Regulation through a Presidential Regulation. (4) The authorization of the Government to change the tariff for Motor Vehicle Fuel Tax shall be carried out in the event:

a.

there is an increase in the price of world oil exceeding 130% (one hundred thirty percent) of the assumption of world oil price determined by Law pertaining to the current State Budget; or

b.

stabilization of the price of oil-based fuel is necessary for a maximum period of 3 (three) years from the promulgation of this Law.

(5)

In the event world oil price as referred to in paragraph (4) letter a returns back to normal, the Presidential Regulation as referred to in paragraph (3) shall be revoked within a period of the latest 2 (two) months.

(6)

The tariff for Motor Vehicle Fuel Tax is promulgated by Regional Regulation. Article 20

The principal range of Tax on Motor Vehicles owed is calculated by manner of multiplying the tariff of taxes as referred to in Article 19 paragraph (6) with the basic imposition of taxes as referred to in Article 18. Fifth Part Surface Water Tax Article 21

(1)

Tax Objects on Surface Water shall be the removal and/ or use of Surface Water.

(2)

Exceptions from Tax Objects on Surface Water are: a. removal and/or use of Surface Water for basic household needs, irrigation for peoples farming and fisheries, with due observance to the preservation of the environment and the statutory regulations; and b. other removal and/or use of Surface Water as promulgated by Regional Regulation.

Article 22 (1) Tax Subjects on Surface Water shall be private persons or Entities that can carry out removal and/or usage of Surface Water. (2) Taxable Subjects on Surface Water shall be private persons or Entities that carry out removal and/or usage of Surface Water. Article 23

(1)

The basis of imposition of Surface Water Tax shall be the Acquired Value of Surface Water.

(2)

The Acquired Value of Surface Water as referred to in paragraph (1) is stated in Rupiah calculated by considering a portion or all of the following factors: a. b. c. d. e. f. g. type of water source; location of water source; purpose of removal and/or usage of water; volume of water removed and/or used; quality of water; surface area of location for removal and/or usage of water; and level of damages to the environment caused by the removal and/or usage of water.

(3)

The use of factors as referred to in paragraph (2) is adjusted to the condition of each respective Region.

(4)

The Amount of Acquired Value of Surface Water as referred to in paragraph () shall be promulgated by Governor Regulation. Article 24

(1)

The Tariff of Surface Water Tax is determined to be the

highest at 10% (ten percent). (2) The Tariff of Surface Water Tax is promulgated by Regional regulation. Article 25 (1) The principal range of Tax on Water owed is calculated by manner of multiplying the tariff as referred to in Article 24 paragraph (2) with the basic imposition of taxes as referred to in Article 23 paragraph (4). (2) Surface Water Tax owed is collected at the regional territory where the water is located. Sixth Part Cigarette tax Article 26 (1) The Object on Cigarette tax is the consumption of cigarettes. (2) Exempted from objects of Cigarette tax as referred to in paragraph (1) are cigarettes that are not imposed with excises based on statutory regulations in excises.

Article 27 (1) (2) Subjects of Cigarette tax are cigarette consumers. Taxable Subjects of Cigarette tax are entrepreneurs of cigarette factories/producers and importers of cigarettes with permits in the form of Entrepreneur Index Number on Goods subject To Excises. Article 28 The basis for imposition of Cigarette tax is excises

determined by the Government on cigarettes. Article 29 The Tariff for Cigarette tax is determined at 10% (ten percent) of the cigarette excises. Article 30 The principal range of Cigarette tax owed is calculated by manner of multiplying the tariff on taxes as referred to in Article 29 with the basic imposition of taxes as referred to in Article 28. Article 31

Of the revenue of Cigarette tax, whether the provincial or district/town share, at least 50% (fifty percent) shall be allocated to fund public Health/Medical Services and law enforcement by the authorized apparatus. Seventh Part Hotel Tax Article 32 (1) The object of Hotel Tax is the services provided by Hotels with payment, including support services as supplementary to Hotels with the characteristics of providing ease and comfort, including sports and entertainment facilities. (2) Support telex, services Internet, as referred for to in paragraph and (1)

constitute

facilities

telephone, laundry

facsimile, ironing,

photocopy,

transportation, and other similar facilities provided or managed by Hotels. (3) Excluded from objects of Hotel Tax as referred to in paragraph (1) are: a. dormitory accommodation services carried out by the Government or Regional Government;

b. c. d.

Rental services of apartments, condominiums, and the like; accommodation services at education or religious activities centers; accommodation dormitories, services old folks at hospitals, nurse and homes, orphanages

other social homes of the like; and e. services of travel bureaus or tour travel carried out by Hotels that can be used by the public. Article 33 (1) Subjects of Hotel Tax are private persons or Entities carrying out payments to private persons or Entities operating Hotels. (2) Taxable Subjects on Hotel Tax are private persons or Entities operating Hotels. Article 34 The basis of imposition of Hotel Tax is the total payment or the amount that should be paid to the Hotel. Article 35 (1) The Tariff of Hotel Tax is determined to be the highest

at 10% (ten percent). (2) The Tariff of Hotel Tax is promulgated by Regional Regulation. Article 36 (1) The principal range of Hotel Tax owed is calculated by manner of multiplying the tariff as referred to in Article 35 paragraph (2) with the basic imposition of taxes as referred to in Article 34. (2) Hotel Tax owed is collected at the regional territory where the Hotels are located. Eighth Part Restaurant Tax Article 37 (1) Objects of Restaurant Tax are the services provided by Restaurants. (2) Services provided by Restaurants as referred to in paragraph (1)cover services in the sale of food and/or beverages consumed by buyers at the places of services or in other places.

(3)

Excluded from objects of Restaurant Tax as referred to in paragraph (1) are services provided by Restaurants with a sale value not exceeding a certain limit as promulgated by Regional Regulation. Article 38

(1)

Subjects to Restaurant Tax are private persons or Entities buying food and/or beverages from Restaurants.

(2)

Taxable Subjects to Restaurant Tax are private persons or Entities operating Restaurants. Article 39

The basis of imposition of Restaurant Tax is total payments received or that should be received by Restaurants. Article 40 (1) The Tariff of Restaurant Tax is determined to the highest at 10% (ten percent). (2) The Tariff for Restaurant Tax is promulgated by Regional Regulation.

Article 41 (1) The principal range of Restaurant owed is calculated by manner of multiplying the tariff as referred to in Article 40 paragraph (2) with the basic imposition of taxes as referred to in Article 39. (2) Restaurant Tax owed is collected at the regional

territories where the Restaurants are located. Ninth Part Entertainment Tax Article 42 (1) The for object of Entertainment Entertainment Tax for covers which services is

organizing

payment

collected. (2) Entertainment comprises: a. b. c. d. e. film shows; presentations fashion; contests on beauty, body building, and the like; exhibitions; discotheques, karaoke, night clubs, and the of art, music, dances and/or as referred to in paragraph (1)

like; f. g. h. i. j. (3) circuses, acrobats and magic shows; games of billiards, golf and bowling; horse games; parlors for massage, reflexology, steam bath/spa and fitness centers; and sports tournaments. races, motor vehicle races and skill

The organization of Entertainment as referred to in paragraph (2) can be exempted by Regional Regulation. Article 43

(1)

The subjects for Entertainment Tax are private persons or Entities enjoying Entertainment.

(2)

Taxable subjects for Entertainment Tax are private persons or Entities organizing Entertainment. Article 44

(1)

The basis of imposition of Entertainment Tax is the total amount of money received or which the organizers of Entertainment should receive.

(2)

The total amount of money, which should be received as

referred to in paragraph (1), includes price discounts and complimentary tickets provided to the recipients of Entertainment services. Article 45 (1) The Tariff for Entertainment Tax is determined at the highest to be 35% (thirty five percent). (2) Specifically for Entertainment in form of fashion shows, beauty contests, discotheques, karaoke, night clubs, skill games, massage parlors, and steam bath/spa, the tariff for Entertainment Tax can be determined at the highest to be 75% (seventy five percent). (3) Specifically for Entertainment in form of people/

traditional arts, the tariff for Entertainment Tax is determined at the highest to be 10% (ten percent). (4) The Tariff on Entertainment Tax is promulgated by Regional Regulation. Article 46 (1) The principal range of Entertainment Tax owed is

calculated by manner of multiplying the tariff as referred to in Article 45 paragraph (4) with the basic

imposition of taxes as referred to in Article 44. (2) Entertainment Tax owed is collected in the regional territory where the Entertainment is organized. Tenth Part Advertising Tax Article 47 (1) The objects of Advertising Tax are all conducts of Advertisements. (2) Objects cover: a. b. c. d. e. f. g. h. i. j. Advertisements on billboards/videotrons/ megatrons and the like; Advertisements on cloth; Advertisements that are affixed, stickers; Advertisements on leaflets; Mobile advertisements; including those on vehicles; Advertisements in the air; Floating advertisements; Voice advertisements; Film/slide advertisements; Advertisements in demonstrations. of Taxes as referred to in paragraph ()

(3)

Excluded as objects for Advertising Tax are: a. the conducting of Advertisements radio, monthly through and the the Internet, weekly like; b. labels/brands of products that are affixed to the traded products, with the function to differentiate from other similar products; c. identification name of business or profession installed affixed to the building as place of business or profession carried out in accordance with the provisions that regulate identification names of such business or profession; d. e. Advertisements organized by the Government or the Regional Government; and the organization of other Advertisements as promulgated by Regional Regulation. television, daily newspaper,

newspaper,

newspaper

Article 48 (1) Subjects of Advertising Tax are private persons or Entities using Advertisements. (2) Taxable Subjects of Advertising Subjects are private persons or Entities carrying out Advertisements.

(3)

In the event Advertisements are carried out alone directly by private persons or Entities, the Taxable Subjects for Advertising shall be those private persons or Entities. Article 49

(1)

The basis for imposition of Advertising Tax is the Rental Value of the Advertisement.

(2)

In the event Advertising is carried out by third parties, the Rental Value of Advertisements as referred to in paragraph (1) is determined based on the contract value of the Advertisement.

(3)

In the event Advertising is conducted alone, the Rental Value of Advertisements as referred to in paragraph (1) is calculated by considering the factors on type, material used, location of placement, time, duration of placement, total, and measurement of Advertising media.

(4)

In the event the Rental Value of Advertisements as referred to in paragraph (2) is unknown and/or deemed unreasonable, the Rental Value of Advertisements is determined by using the factors as referred to in

paragraph (3). (5) The method for calculation of Rental Value of

Advertisements as referred to in paragraph (3) is promulgated by Regional Regulation. Eleventh Part Street Lighting Tax Article 52 (1) The object for Street Lighting Tax shall be the use of electricity, whether own produce or acquired from other sources. (2) Own produce electricity as referred to in paragraph (1) covers all electric power generators. (3) Exempted a. b. from objects for Street Lighting Tax as

referred to in paragraph (1) are: the use of electricity by Government and Regional Government instances; the use of electricity in places used by embassies, consulates, and foreign representatives based on the principle of reciprocity; c. the use of electricity as own produce with certain capacity that does not require permit from the

relevant technical institution; and d. the use of other electric power regulated by Regional Regulation. Article 53 (1) Subjects for Street Lighting Tax are private persons or Entities that can use electricity. (2) Taxable Subjects for Street Lighting Tax are private persons or Entities using electricity. (3) In the event Electricity is provided by other sources, then Taxable Subjects for Street Lighting Tax are the providers of electricity. Article 54 (1) The basis for imposition of Street Lighting Tax is the Sale Value of Electricity. (2) The Sale Value of Electricity as referred to in paragraph (1) is determined as follows: a. In the event the Electricity originates from other sources with payment, the Sale Value of Electricity shall be the total bill on permanent cost/load plus cost of kWh usage/variables invoiced in the

electricity bill; b. in the event the electric power is own produce, the Sale Value of Electricity is calculated based on the available capacity, level of electricity used, period of time of usage of electricity, and electricity unit price applicable in the concerned Regional territory. Article 55 (1) The Tariff for Street Lighting Tax is determined at the highest to be 10% ten percent). (2) On the use of electricity from other sources by

industries, natural oil and gas mines, the tariff for Street Lighting Tax is determined at the highest to be 3% (three percent). (3) For the use of electricity as own produce, the tariff for Street Lighting Tax is determined at the highest to be 1.5% (one point five percent). (4) The Tariff on Street Lighting Tax is promulgated by Regional Regulation. Article 56

(1)

The principal range of Street Lighting Tax owed is calculated by manner of multiplying the tariff as referred to in Article 55 paragraph (4) with the basic imposition of taxes as referred to in Article 54.

(2)

Street Lighting Tax owed is collected in the regional territory where the electricity is used.

(3)

From the proceeds of receipt of Street Lighting Tax, a portion is allocated for the supply of street lighting. Twelfth Part Tax on Non-Metal Mineral and Rock Article 57

(1)

Objects for Tax on Non-Metal Mineral and Rock are activities covering the removal of Non-Metal and NonRock Minerals comprising: a. b. c. d. e. f. g. asbestos; slate; semi-precious gem stones; limestone; pumice; gem stones; bentonit;

h. i. j. k. l. m. n. o. p. q. r. s. t. u. v. w. x. y. z. aa. ab. ac. ad. ae. af. ag. ah.

dolomite; feldspar; rock salt (halite); graphite; granite/andesit; gypsum; calcite; kaolin; leusit; magnetite; mica; marble; nitrate; obsidian; ochre; sand and gravel; quartz sand; perlit; phosphate; talc; fullers earth; diatomic earth; clay; alum; trass/rock used for cement; yarosife; zeolite;

ai. aj. ak.

basalt; trakkit; and Other Non-Metal and Non-Rock Minerals in accordance with the provisions of statutory regulations.

(2)

Exempted from objects of Tax on Non-Metal Mineral and Rock as referred to in paragraph (1) are the following: a. activities Non-Rock covering removal of Non-Metal are not and used Minerals that clearly

commercially, such as activities of removing earth for household purposes, erecting power/telephone posts, b. planting/installing power/telephone cables, planting/installing water/gas pipes; activities covering removal of Non-Metal and NonRock Minerals comprising derivatives from other mining activities that are not commercially used; and c. removal of other Non-Metal and Non-Rock Minerals as promulgated by Regional Regulation. Article 58 (1) Subjects for Tax on Non-Metal Mineral and Rock are private persons or Entities that can remove Non-Metal and Non-Rock Minerals.

(2)

Taxable Subjects for Tax on Non-Metal Mineral and Rock are private persons or Entities removing Non Metal or Non Rock Minerals. Article 59

(1)

The basis for imposition of Tax on Non-Metal Mineral and Rock shall be the Sale Value of Proceeds of Removing Non-Metal and Non-Rock Minerals.

(2)

The Sale Value as referred to in paragraph (1) is calculated by multiplying the volume/tonnage of results of removal with the market value or standard price of each respective type of Non-Metal and Non-Rock Mineral.

(3)

The market value as referred to in paragraph (2) is the average price prevailing in the location of the concerned regional territory.

(4)

In the event the market value of the results of production of Non-Metal and Non-Rock Minerals as referred to in paragraph (3) is difficult to obtain, then the standard price as determined by the authorized instance in the field of Non-Metal and Non-Rock Minerals, shall apply. Article 60

(1)

The

Tariff

for

Tax

on

Non-Metal

Mineral

and

Rock

is determined at the highest to be 25% (twenty five percent). (2) The Tariff for Tax on Non-Metal Mineral and Rock is promulgated by Regional Regulation. Article 61 (1) The principal range of Tax on Non-Metal Mineral and Rock owed is calculated by manner of multiplying the tariff on taxes as referred to in Article 60 paragraph (2) with the basic imposition of taxes as referred to in Article 59. (2) Tax on Non-Metal Mineral and Rock owed are collected in the regional territory where the Non-Metal and NonRock Minerals are being removed. Thirteenth Part Parking Tax Article 62 (1) The Object for Parking Tax is the operating of Parking lots/spaces other than the bodies of roads, whether

provided in relation to the main business or provided as a business, including the provision of space for entrusting motor vehicles. (2) Excluded from the tax object as referred to in paragraph (1) are: a. b. c. the operation of Parking lots/spaces by the Government and Regional Government; the operation of Parking lots/spaces by offices used by their own employees; the operation of Parking lots/spaces by embassies, consulates, and foreign country representatives on the principle of reciprocity; d. the operation of other Parking lots/spaces is regulated by Regional Regulation. Article 63 (1) Subjects of Parking Tax are private persons or Entities that can operate parking services for motor vehicles. (2) Taxable subjects of Parking Tax are private persons or Entities operating Parking lots/spaces. Article 64 (1) The basis for imposition of Parking Tax is the total

amount of payment or the amount that should be paid to the operator of Parking lots/spaces. (2) The basis for imposition of Parking Tax as referred to in paragraph (1) can be promulgated by Regional Regulation (3) The total amount that should be paid as referred to in paragraph (1) includes discounts on the Parking price and complimentary Parking provided to recipients of Parking services. Article 65 (1) The Tariff for Parking Tax is determined at the highest to be 30% (thirty percent). (2) The Tariff on Parking Tax is promulgated by Regional Regulation. Article 66 (1) The principal range of Parking Tax owed is calculated by manner of multiplying the tariff as referred to in Article 65 paragraph (2) with the basic imposition of taxes as referred to in Article 64.

(2)

Parking Tax owed is collected in the regional territory where the Parking lots/spaces are located. Fourteenth Part Ground Water Tax Article 67

(1)

Tax Objects on Ground Water shall be the removal and/ or use of Ground Water.

(2)

Exceptions from Tax Objects on Ground Water are: a. removal and/or use of Ground Water for basic household needs, irrigation for peoples farming and fisheries, and religious matters; and b. other removal and/or use of Ground Water as regulated by Regional Regulation. Article 68

(1)

Tax Subjects on Ground Water shall be private persons or Entities that can carry out removal and/or usage of Ground Water.

(2)

Taxable Subjects on Ground Water shall be private persons or Entities that carry out removal and/or usage of Ground Water.

Article 69 (1) The basis of imposition of Ground Water Tax shall be the Acquired Value of Ground Water. (2) The Acquired Value of Ground Water as referred to in paragraph (1) is stated in Rupiah calculated by considering a portion or all of the following factors: a. b. c. d. e. g. type of water source; location of water source; purpose of removal and/or usage of water; volume of water removed and/or used; quality of water; and level of damages to the environment caused by the removal and/or usage of water. (3) The use of factors as referred to in paragraph (2) is adjusted to the condition of each respective Region. (4) The Amount of Acquired Value of Ground Water as referred to in paragraph () shall be promulgated by District Head/Mayor Regulation. Article 70

(1)

The Tariff of Ground Water Tax is determined to be the highest at 20% (twenty percent).

(2)

The Tariff of Ground Water Tax is promulgated by Regional regulation. Article 71

(1)

The principal range of Taxes on Water owed is calculated by manner of multiplying the tariff as referred to in Article 70 paragraph (2) with the basic imposition of taxes as referred to in Article 69 paragraph (4).

(2)

Ground Water Tax owed is collected at the regional territory where the water is removed. Fifteenth Part Swallows Nests Tax Article 72

(1)

Tax Objects on Swallows Nests shall be the removal and/or the exploitation of Swallows Nests.

(2)

Exceptions from Tax Objects on Swallows Nests are: a. removal and/or exploitation already imposed with Non Taxable State Revenue (PNBP);

b.

other activities and/or exploitation of Swallows Nests as promulgated by Regional Regulation. Article 73

(1)

Tax

Subjects

on

Swallows

Nests

shall

be

private

persons or Entities that can carry out removal and/or exploitation of Swallows Nests. (2) Taxable Subjects on Swallows Nests shall be private persons or Entities that carry out removal and/or exploitation of Swallows Nests.

Article 74 (1) The basis of imposition of Swallows Nests Tax shall be the Sale Value of Swallows Nests. (2) The Acquired Value of Swallows Nests as referred to in paragraph (1) is calculated based on multiplication of the general market price of Swallows Nests prevailing In the concerned region and the volume of Swallows Nests. Article 75

(1)

The Tariff of Swallows Nests Tax is determined to be the highest at 10% (ten percent).

(2)

The Tariff of Swallows Nests Tax is promulgated by Regional regulation. Article 76

(1)

The principal range of Taxes on Water owed is calculated by manner of multiplying the tariff as referred to in Article 75 paragraph (2) with the basic imposition of taxes as referred to in Article 74.

(2)

Swallows Nests Tax owed is collected at the regional territory where the removal and/or exploitation of Swallows Nests are conducted. Sixteenth Part Rural and Urban Land and Building Tax Article 77

(1)

Objects for Rural and Urban Land and Building Tax are Land and/or Buildings owned, controlled, and/or used by private persons or Entities, with the exception of areas used for the business activities of plantations, forestry and mining.

(2)

Included in the interpretation of Building are: a. roads within the environment that are located in one building complex such as hotel, factory, and their emplacements, which constitute an integral part of the complex of such Building; b. c. d. e. f. g. h. i. toll roads/freeways; swimming pools; expensive fences; sports venues; ship docks, berths; luxurious gardens; places for retaining/refineries for oil, water and gas, oil piping; and towers.

(3)

Tax Objects that are not imposed with Rural and Urban Land and Building Tax are tax objects that: a. b. are used by the Government and Regions for government administration; are used solely to serve non-profit public interests in the fields of religious affairs, social affairs, health, national education and culture; c. d. used for cemeteries, archaeological remains or the like; constitute protected forests, natural preserved forests, tourism forests, national parks,

shepherding land controlled by villages, and state land that is still clear and free of any rights; e. f. used by diplomatic representatives and consulates bases on the principle of reciprocity; and is used by international entities or representatives of international institutions as promulgated by Regulation of the Minister of Finance. (4) The amount of the Sale Value of Non-Taxable Tax Objects is determined at the lowest to be Rp.10,000,000.00 (ten million Rupiah) for each Taxable Subject. (5) The Sale Value of Non-Taxable Tax Objects as referred to in paragraph (4) is promulgated by Regional Regulation. Article 78 (1) The Subjects of Rural and Urban Land and Building Tax are private persons or Entities that actually own rights on Land and/or acquire right on benefits on Land, and/or own, control and/or acquire right on benefits on Building. Article 79 (1) The basis of imposition of Rural and Urban Land and

Building Tax is the NJOP. (2) The amount of NJOP as referred to in paragraph (1) is determined every 3 (three) years, with the exception for certain tax objects that can be determined each year in accordance with the relevant areas development. (3) The determination of the NJOP as referred to in paragraph (2) is carried out by the Regional Head. Article 80 (1) The Tariff for Rural and Urban Land and Building Tax is determined at the highest to be 0.3% (zero point three percent). (2) The Tariff for Rural and Urban Land and Building Tax is promulgated by Regional Regulation.

Article 81 The principal range of Rural and Urban Land and Building Tax owed is calculated by manner of multiplying the tariff as referred to in Article 80 paragraph (2) with the basic imposition of taxes as referred to in Article 79 paragraph (3) after being deducted by the Sale Value of Non-Taxable Tax Objects as referred to in Article 77 paragraph (5).

Article 82 (1) The Tax Year shall be a period of 1 (one) calendar year. (2) The time to determine taxes owed shall be in accordance with the condition of the tax object on the date of 1st January. (3) The venue of taxes owed shall be the territorial region covering the location of the tax object. Article 83 (1) (2) Data gathering is carried out by using SPOP. SPOP as referred to in paragraph (1) must be filled in clearly, accurately and completely as well as signed and submitted to the Regional Head whose working are covers the location of the tax object, the latest 30 (thirty) working days after the date of receipt of the SPOP by the Tax Subject. Article 84 (1) Based on the SPOP, the Regional Head shall issue the

SPPT. (2) The Regional Head can issue an SKPD in the event of the following: a. The SPOP as referred to in Article 83 paragraph (2) is not submitted and after the Taxable Subject has been reminded in writing by the Regional Head as stated in the Reminder Letter; b. based on the results of audit or other information it is apparent that total taxes owed exceed total taxes calculated based on the SPOP submitted by the Tax Subject. Seventeenth Part Excise on Acquired Right on Land and Building Article 85 (1) Tax and objects Building of Excise on Acquired Rights Right on Land on Land

are

Acquired

and/or

Buildings. (2) Acquired Rights on Land and/or Buildings as referred to in paragraph (1) cover the following: a. transfer of right due to: 1) sale purchase;

2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) b. 1) 2) (3)

exchange; grant; will grant; inheritance; incorporated into a company or other legal entity; separation transfer; appointment of buyer in auction/bid; implementation of judges ruling that has permanent legal force; business merger; business amalgamation; business development; or gift continuance of release of right; or other than release of right. of rights leading towards

granting of new right due to:

Rights on land as referred to in paragraph (1) are: a. b. c. d. e. f. right of ownership; right on use of land (hak guna usaha); right on use of building (hak guna bangunan); right to use; right of ownership on apartment unit; and right of management.

(4)

Tax objects that are not imposed with Excise on Acquired Right on Land and Buildings are those acquired by the following: a. b. diplomatic representatives and consulates based on the principle of reciprocity; the state for administering the government and/or for the implementation of development for public interest; c. entities or representatives of international institutions as promulgated by Regulation of the Minister of Finance with the condition not to operate any business or conduct other activities beyond the function and duties of such entities and representatives of organizations; d. private persons or Entities due to conversion of right or due to other legal actions without any change of name; e. private persons or Entities due to property as donation for religious or community use (wakaf); and f. private persons or Entities for religious use. Article 86

(1)

Subjects for Excise on Acquired Right on Land and Building are private persons or Entities acquiring Rights on Land and/or Buildings.

(2)

Taxable Subjects for Excise on Acquired Right on Land and Building are private persons or Entities acquiring Rights on Land and/or Buildings. Article 87

(1)

The basis of imposition of Excise on Acquired Right on Land and Building is the Acquired Value of the Tax Object.

(2)

The Acquired Value of the Tax Object as referred to in paragraph (1), in the event of the following: a. b. c. d. e. f. g. h. a sale purchase, shall be the transaction price; an exchange, shall be the market value; a grant, shall be the market value; a will grant, shall be the market value; an inheritance, shall be the market value; incorporation into a company or other legal entity, shall be the market value; a separation of rights that causes transfer, shall be the market value; a transfer of rights due to implementation of judges ruling that has permanent legal force, shall be the market value; i. granting of new right on land as a continuance of the release of right, shall be the market value;

j. k. l. m. n. o.

granting of new right on land other than the release of right, shall be the market value; merging value; amalgamation of business, shall be the market value; development value; gift, shall be the market value; and/or appointment of buyer in an auction/bid, shall be the transaction price mentioned in the minutes of the auction/bid. of business, shall be the market of businesses, shall be the market

(3)

If the Acquired Value of Tax Objects as referred to in paragraph (2) letters a to n is unknown or lower than the NJOP used in the imposition of Land and Building Taxes in the year of occurrence of acquirement, the basis of imposition used shall be the NJOP of Land and Building Taxes.

(4)

The Amount of Acquired Value on Un-taxed Tax Objects is determined to be the lowest at Rp.60, 000,000.00 (sixty million Rupiah) for each Taxable Subject.

(5)

In the event the acquired rights due to inheritance or will grant received by private persons still related through blood in a straight line one degree upwards

and one degree downwards with the giver of the will grant, including husband/wife, the Acquired Value of Un-taxed Tax Objects is determined to be the lowest at Rp.300,000,000.00 (three hundred million Rupiah). (6) The Acquired Value of Un-taxed Tax Objects as referred to in paragraph (4) and paragraph (5) is promulgated by Regional Regulation. Article 88 (1) The Tariff of Excise on Acquired Right on Land and Building is determined to be the highest at 5% (five percent). (2) The Tariff of Excised on Acquired Rights on Land and Building is promulgated by Regional Regulation. Article 89 (1) The principal range of Excise on Acquired Right on Land and Building owed is calculated by manner of multiplying the tariff as referred to in Article 88 paragraph (2) with the basic imposition of taxes as referred to in Article 87 paragraph (1 after being deducted by the Acquired Value of Un-taxed Tax Objects as referred to in Article 87 paragraph (6).

(2)

Excise on Acquired Right on Land and Building owed are collected at the regional territory where the Land and/or Buildings are located. Article 90

(1)

The time Excise on Acquired Right on Land and Building are owed, as determined for: a. b. c. d. e. sale purchase, shall be effective from the date the deeds are drawn up and signed; exchange; shall be effective from the date the deeds are drawn up and signed; grant, shall be effective from the date the deeds are drawn up and signed; will grant, shall be effective from the date the deeds are drawn up and signed; inheritance, shall be effective from the date the concerned party registers his/her transfer of right to the land agency office; f. incorporation into a company or other legal entity, shall be effective from the date the deeds are drawn up and signed; g. separation of rights causing a transfer, shall be effective from the date the deeds are drawn up and signed; h. a judges ruling, shall be effective from the date the courts ruling has permanent legal force;

i.

granting of new rights on Land as a continuance of the release of rights, shall be effective from the date of issuance of letter of decision from the grantor of rights;

j.

granting of new rights other than release of rights, shall be effective from the date of issuance of letter of decision from the grantor of rights;

k. l. m. n. o.

merging of businesses, shall be effective from the date the deeds are drawn up and signed; amalgamation of business, shall be effective from the date the deeds are drawn up and signed; development of business, shall be effective from the date the deeds are drawn up and signed; gift, shall be effective from the date the deeds are drawn up and signed; and auction/bid, shall be effective from the date of appointment of winner of the auction/bid.

(2)

Taxes owed must be settled in full at the time of occurrence of rights as referred to in paragraph (1). Article 91

(1)

The Official for Drawing Up Land Deeds/Notary can only sign deeds on transfer of Rights on Land and/or Building after the Taxable Subject submits evidence of payment of taxes.

(2)

The Head of the office in charge of state auction services can only sign the minutes of auctions/bids on Acquired Rights on Land and/or Buildings after the Taxable Subject submits evidence of payment of taxes.

(3)

The Head of the land agency office in charge can only register Rights on Land or register transfer of Right on Land after the Taxable Subject submits evidence of payment of taxes. Article 92

(1)

The Official for Drawing Up Land Deeds/Notary and head of the office in charge of state auction services shall report the drawing up of deeds or minutes on Acquired Rights on Land and/o Buildings to the Regional Head the latest on the 10th (tenth) of the following month.

(3)

Procedures or reporting by the officials as referred to in paragraph (1) are regulated by the Regional Head. Article 93

(1)

The Official for Drawing Up Land Deeds/Notary and the and head of the office in charge of state auction services, who violate the provisions as referred to in Article 9

paragraph (1) and paragraph (2) shall be imposed with sanctions in form of fines amounting to Rp.7,500,000.00 (seven million five hundred thousand Rupiah) for each violation. (2) The Official for Drawing Up Land Deeds/Notary and the head of the office in charge of state auction services, who violate the provisions as referred to in Article 92 paragraph (1) shall be imposed with administrative sanctions in the form of fines amounting to Rp.250,000.00 (two hundred fifty thousand Rupiah) for each report. (3) The head of the office in charge of state auction services, who violates the provisions as referred to in Article 92 paragraph (3) shall be imposed with sanctions in accordance with the provisions of the statutory regulations. CHAPTER III PROFIT SHARING OF PROVINCIAL TAXES Article 94 (1) Out of the proceeds of provincial Taxes revenue as referred to in Article 2 paragraph (1), a portion shall be for the district/town in the relevant provincial territory subject to the following provisions:

a.

30% (thirty percent) of the proceeds of revenue from Motor Vehicle Tax and Excised on Transfer of Ownership of Motor Vehicles shall be submitted to the district/town;

b.

70% (seventy percent) of the proceeds of Motor Vehicle Fuel Taxes shall be submitted to the district/town;

c. d.

70% (seventy percent) if the proceeds of Cigarette tax shall be submitted to the district/town; and 50% of the proceeds of Surface Water Tax shall be submitted to the district/town.

(2)

Specifically for proceeds of Surface Water Tax from water sources located in only 1 (one) district/town territory, 80% (eighty percent) of the proceeds of such Surface Water Tax shall be submitted to the concerned district/town.

(3)

The district/town portion as referred to in paragraph (1) is determined with due observance to the aspect of equal spreading and/or potential among districts/ towns.

(4)

Further

provisions

pertaining

to

profit

sharing

of

proceeds of provincial Tax revenue for districts/towns as referred to in paragraph (1) and paragraph (2) shall be promulgated by Regional Regulation of the

Province. CHAPTER IV PROMULGATION AND CONTENT REGULATED IN THE REGIONAL REGULATIONS PERTAINING TO TAXES Article 95 (1) (2) Taxes are determined by Regional Regulation. Regional Regulations concerning Taxes are not

retroactive. (3) Regional Regulations concerning Taxes shall at least regulate provisions pertaining to: a. b. c. d. e. f. g. h. i. (4) name, object, and Tax Subject; basis of imposition, tariff, and method of calculating taxes; territory of collection; Tax Period; determination; procedures for payment and billing; expiry; administrative sanctions; and the effective date. Regulations pertaining to Taxes can also

Regional

regulate provisions pertaining to: a. granting of reduction, relief, and release in certain b. c. cases on principal taxes and or the sanctions thereof; procedures for waiver of tax receivables that have expired; and/or the principle of reciprocity, in form of granting reduction, relief and waiver of taxes to embassies, consulates and representatives of foreign countries in accordance with international custom. CHAPTER V COLLECTION OF TAXES First Part Procedures of Collection Article 96 (1) It is prohibited to outsource or contract Collection of Taxes. (2) Each Taxable Subject is required to pay Taxes owed based on the tax determination letter or to be paid himself/ herself by the Tax Subject based on the statutory regulations on taxes.

(3)

Taxable Subjects are in compliance with tax obligations based on the determination of the Regional Head if such is paid by using the SKPD or other equalized document.

(4)

Other documents that are equalized as referred to in paragraph (3) are in the form of tickets and notes of calculation.

(5)

Taxable Subjects are in compliance with their own tax obligations if such is paid by using SPTPD, SKPDKB, and/or SKPDKBT, Article 97

(1)

Within a period of 5 (fives) years after the time of taxes owed, the Regional Head can issue: a. SKPDKB in the event: 1) if based on the results of audit or other information, the taxes owed have not been or have been insufficiently paid; 2) if the SPTPD is not submitted to the Regional Head within a certain period of time and after being reminded in writing, such was not submitted as required to in the reminder letter; 3) if the obligation of completing the SPTPD

was not carried out, the taxes owed shall be calculated by position. b. The SKPDKBT if new data is discovered and/or data initially uncovered, causing an increase in total taxes owed. c. SKPDN if total taxes owed equals the amount of total credit on taxes or taxes not owed and there is no credit on taxes. (2) The total of taxes insufficiently paid owed in the SKPDKB as referred to in paragraph (1) letter a number 1) and number 2) shall be imposed with administrative sanction in form of interest amounting to 2% (two percent) a month calculated from the taxes insufficiently paid or late in payment for a period of a maximum of 24 (twenty four) months effective from the time the taxes are owed. (3) The total amount of taxes insufficiently paid owed in the SKPDKBT as referred to in paragraph (1) letter b shall be imposed with administrative sanction in form of a 100% (one hundred percent) increase of the total amount of insufficiently paid taxes mentioned. (4) The increase as referred to in paragraph (3) shall not be imposed if the Taxable Subject reports himself/ herself prior to any implementation of audit.

(5)

The total amount of taxes owed in the SKPDKB as referred to in paragraph (1) letter a number 3) shall be imposed with administrative sanction in form of an increase of 25% (twenty five percent) of the principal taxes added by an administrative sanction in form of interest amounting to 25 (two percent) a month calculated from the insufficiently paid or late payment of taxes for a maximum period of time of 24 (twenty four) months effective from the time the taxes are owed. Article 98

Further provisions pertaining to types of Taxes that can be collected based on the determination of the Regional Head or paid by the Taxable Subject himself/herself and other provisions in relation to the collection of Taxes, are regulated by Government Regulation. Article 99 (1) Procedures for the issuance of SKPD or other equalized documents, SPTPD, SKPDKB, and SKPDKBT as referred to in Article 96 paragraph (3) and paragraph (5) are regulated by Regulation of the Regional Head. (2) Further provisions concerning procedures on completing

and submitting SKPD and other equalized documents, SPTPD, SKPDKB, and SKPDKBT as referred to in Article 96 paragraph (3) and paragraph (5) are regulated by Regulation of the Regional Head. Second Part Tax Collection Letter Article 100 (1) The Regional Head can issue an STPD in the event: a. b. taxes in the current year have not yet or have been insufficiently paid; the results of scrutiny of the SPTPD show insufficient payment due to error in writing and/ or error in calculation; c. The Taxable Subject is imposed with administrative sanction in form of interest and/or fine. (2) The total amount of insufficiently paid taxes owed in the STPD as referred to in paragraph (10 letter a and letter b. shall be added with administrative sanctions in form of interest amounting to 2% (two percent) each month for a maximum of 15 (fifteen) months effective from the date the taxes are owed. (3) The SKPD that has not been paid or has been insufficiently

paid after the due date of payment, shall be imposed with administrative sanction in form of interest amounting to 2% (two percent) a month and collected through an STPD. Third Part Procedures for Payment and Collection Article 101 (1) The Regional Head shall determine the due date for payment and deposit of taxes owed at a maximum of 30 (thirty) working days after the time the taxes are owed and a maximum of 6 (six) months effective from the date of receipt of the SPPT by the Taxable Subject. (2) The SPPT, SKPD, SKPDKB, SKPDKBT, STPD, Letter of Decision of Correction, Letter of Decision of Objection, and Ruling on Appeal, which cause an increase in the total taxes to be paid shall constitute the basis of tax collection and must be settled in full with a maximum period of 1 (one) month after the date of issuance. (3) The Regional Head at the request of the Taxable

Subject upon completion of the set conditions may give approval to the Tax Subject to pay in installments or to postpone payment of taxes, with the imposition of

interest amounting to 2% (two percent) per month. (4) Further provisions pertaining to procedures of

payment, deposit, place of payment, installments, and postponement of tax payments are regulated by Regulation of the Regional Head. Article 102 (1) Taxes owed based on SPPT, SKPD, SKPDKB, SKPDKBT, STPD, Letter of Decision of Correction, Letter of Decision of Objection, and Ruling on Appeal, which are not paid or are insufficiently paid by the Taxable Subject in a timely manner, can be collected through a Letter of Force. (2) Collection of Taxes through Letter of Force is carried out based on the statutory regulations. Fourth Part Objections and Appeals Article 103 (1) Taxable Subjects can file for appeals only to the Regional Head or the designated official against: a. SPPT;

b. c. d. e. f. g.

SKPD; SKPDKB; SKPDKBT; SKPDLB; SKPDN; and Deductions or collections by third parties based on the provisions of statutory regulations on regional/local taxes.

(2)

Objections are to be submitted in writing in the Indonesian thereof. language accompanied by clear reasons

(3)

Objects must be submitted within a maximum period of 3 (three) months from the date of the letter, date of deduction or collection as referred to in paragraph (1), unless the Taxable Subject can show that such period of time cannot be complied with due to conditions beyond his/her control.

(4)

Objections may be submitted if the Taxable Subject has paid at least the amount approved by the Taxable Subject.

(5)

Objections that do not comply with the requirements as referred to in paragraph (1), paragraph (2), paragraph (3), and paragraph (4) shall not be deemed as Letters

of Objection and thus shall not be considered. (6) Receipts of letters of objection provided by the

Regional Head or the designated official or evidence of delivery of letters of objection through registered mail shall constitute evidence of receipt of letters of objection. Article 104 (1) The Regional Head within a maximum period of 12 (twelve) months from the date of receipt of the Letter of Objection, must make a decision on the objection so filed. (2) The decision of the Regional Head on the objection can be in form of acknowledging wholly or partially, rejecting, or increasing the amount of taxes owed. (3) If the period of time as referred to in paragraph (1) has passed and the Regional Head has still not made a decision, the said objection so filed shall be deemed as granted. Article 105 (1) Taxable Subjects can submit requests for appeal only to the Tax Court against decisions pertaining to their

objections that are determined by the Regional Head. (2) Files for appeals as referred to in paragraph (1) are submitted in writing in the Indonesian language, with clear reasons within a period of 3 (three) months from the time the decision is received, and attached with a copy of such letter of decision on objection mentioned. (3) Filing of requests for appeal shall postpone the

obligation to pay taxes up to 1 (one) month from the date of issuance of Decision on Appeal. Article 106 (1) If the file for appeal or request for appeal is wholly or partially granted, the excess payment of taxes shall be returned added by compensation of interest amounting to 2% (two percent) per month for a maximum period of 24 (twenty four) months. (2) Compensation of interest as referred to in paragraph (1) shall be calculated from the month of full settlement up to the issuance of the SKPDLB. (3) In the event the objection of the Taxable Subject is rejected or only partially granted, the Taxable Subject

shall be imposed with administrative sanction in the form of a fine amounting to 50% (fifty percent) of the total taxes based on the Decision on Objection deducted by taxes already paid prior to filing objection. (4) In the event the Taxable Subject files a request of appeal, imposed. (5) In the event the request for appeal is rejected or only partially granted, the Taxable Subject shall be imposed with administrative sanction in the form of a fine amounting to 100% (one hundred percent) of the total taxes based on the Decision on Objection deducted by taxes already paid prior to filing objection. Fifth Part Correction, Cancellation, Reduction in Determination, and Waiver or Reduction of Administrative Sanctions Article 107 (1) At the request of the Taxable Subject or due to his/her position, The Regional Head may correct the SPPT, SKPD, SKPDKB, SKPDKBT, or STPD, SKPDN, or SKPDLB, where in their issuances typos and/or errors in calculation and/ the administrative sanction of 50% (fifty percent) as referred to in paragraph (3) shall not be

or errors in application of certain provisions in the statutory regulations on local taxes, are discovered. (2) The Regional Head can: a. reduce or waive administrative sanctions in form of interest, fines and increases in taxes owed in accordance with statutory regulations on local taxes, in the event such sanctions are imposed due to the unintentional error of the Taxable Subject and not due to his/her error; b. c. d. reduce or cancel SPPT, SKPD, SKPDKB or STPD, SKPDN or SKPDLB, which are incorrect; reduce or cancel STPD; cancel the results of audit or tax determination carried out or issued not in accordance with the set procedures; e. reduce the determination of taxes owed based on the consideration of the paying capability of the Taxable Subject or certain conditions of the tax object. (3) Further provisions pertaining to procedures on reduction or waiver of administrative sanctions and reduction or waiver of tax determination as referred to in paragraph (2) are regulated by Regulation of the Regional Head. CHAPTER IV

CHARGES First Part Objects and Categories of Charges Article 108 (1) Objects of Charges are: a. b. c. (2) Public Services; Business Services; and Certain Permits.

Charges imposed on public services as referred to in paragraph (1) letter a are categorized as Public Services Retribution.

(3)

Charges imposed on business services as referred to in paragraph (1) letter b are categorized as Business Services Retribution.

(4)

Charges imposed on certain permits Permits Retribution. Second Part Public Services Retribution

as referred to

in paragraph (1) letter c are categorized as Certain

Article 109 Objects of Public Services Retribution are services provided or given by the Regional/Local Government for the purpose of public interest and benefit and which private persons or Entities can enjoy. Article 110 (1) Types of Public Services Retribution are: a. b. c. Retribution for Health/Medical Services; Retribution Services Retribution Deeds; d. e. f. g. h. i. j. k. Retribution for Burial and Cremation Services; Retribution for Parking Services at Sides of Public Roads; Retribution for Market Services; Retribution for Motor Vehicle Testing; Retribution Equipment; Retribution for Compensation of Printing Maps; Retribution Toilets; Retribution on Liquid Waste Management/ for the Supply and/or Suction of for Inspection of Fire Fighting for Compensation of Printing Residential Identity Cards and Civil Registry for Garbage Disposal/ Cleanliness

Processing; l. m. n. (2) Retribution Services; Retribution on Education Services; Retribution on Telecommunications Tower Control. on calibration and re-calibration

Types of Charges as referred to in paragraph (1) cannot be collected if the potential revenue thereof is low and/or it is national/regional policy to provide such services free of charge.

Article 111 (1) Objects of Retribution for Health/Medical Services

as referred to in Article 110 paragraph (1) letter are Health/Medical Services at public health centers (puskesmas), mobile public health centers (puskesmas keliling), support public health centers (puskesmas pembantu), medical treatment halls (balai pengobatan), regional general hospitals (rumah sakit umum daerah), and other Health/Medical Services venues of similar type that are owned and/or managed by the Regional Government, with the exception of registration services.

(2)

Exempted

from

objects

of

Health/Medical

Services

Charges are health/medical services conducted by the Government, BUMN, BUMD, and the private sector. Article 112 (1) Objects of Retribution for Garbage Disposal/ Cleanliness Services as referred to in Article 110 paragraph (1) letter b are services for garbage disposal/cleanliness operated a. b. by the Regional Government, covering the following: removal/collection of garbage from the source to the temporary landfill location; transportation of garbage from the source and/or the temporary landfill to the final location of the landfill; c. (2) provision of location for landfill.

Exempted from objects of Retribution as referred to in paragraph (1) are services for cleaning public roads, parks, religious places, social venues and other public places. Article 113

Objects

of

Retribution

for

Compensation

of

Printing

Residential Identity Cards and Civil Registry Deeds as

referred to in Article 110 paragraph (1) letter c are the following services: a. b. c. d. e. f. g. resident identity cards; residential information card; work identity card; temporary resident identity card; seasonal resident identity card; family card; and civil registry deeds covering marriage certificates, divorce deeds, deed of legalization and acknowledgement of children, deed on change of name for foreign citizens, and death certificates. Article 114 Objects of Retribution for Burial and Cremation Services as referred to in Article 110 paragraph (1) letter d are services for burial and cremation covering: a. b. services for burial/funeral including digging and

filling, cremation; and lease of burial or cremation grounds owned or managed by the Regional Government. Article 115 Objects of Retribution for Parking Services at Sides of Public

Roads as referred to in Article 110 paragraph (1) letter e cover the provision of parking services at the sides of public roads determined by the Regional Government in accordance with the provisions of the statutory regulations. Article 116 (1) Objects of Retribution for Market Services as referred to in Article 110 paragraph (1) letter f cover the provision of traditional/simple market facilities, in form of yards, market stalls, kiosks managed by the Regional Government, and particularly provided for traders. (2) Exempted from objects of Retribution as referred to in paragraph (1) are services for market facilities managed by BUMN,BUMD, and the private sector. Article 117 Objects of Retribution for Motor Vehicle Testing as referred to in Article 110 paragraph (1) letter g cover services on the testing of motor vehicles, including motor vehicles on water, in accordance with the provisions of statutory regulations, which are carried out by the Regional Government.

Article 118 Objects of Retribution for Inspection of Fire Fighting Equipment as referred to in Article 110 paragraph (1) letter h cover services for the inspection and/or testing of fire fighting equipment, equipment for overcoming fires, and lifesaving equipment by the Regional Government on fire fighting equipment, equipment for overcoming fires, and life-saving equipment owned and/or used by the general public. Article 119 Objects of Retribution for Compensation of Printing Maps as referred to n Article 110 paragraph (1) letter i cover the provision of maps made by the Regional Government. Article 120 (1) Objects of Retribution for the Supply and/or Suction of Toilets as referred to n Article 110 paragraph (1) letter j cover the services for supply and/or suction of toilets carried out by the Regional Government. (2) Exempted from Charges as referred to in paragraph (1) are services for supply and/or suction of toilets provided, owned and/or managed by BUMN, BUMD and the private sector.

Article 121 (1) Objects of Charges on Liquid Waste Management/Processing as referred to n Article 110 paragraph (1) letter k cover the services for liquid waste management/ processing of households, offices and industries, provided, owned and/or managed in a specific manner by the Regional Government in form of a liquid waste processing installation. (2) Exempted from Charges as referred to in paragraph (1) are services on liquid waste management/processing provided, owned and/or managed by the Government, BUMN, BUMD, the private sector, and disposal of liquid waste directly into rivers, through drainage and/or other disposal facilities. Article 122 Objects of Retribution on calibration and re-calibration Services as referred to in Article 110 paragraph (1) letter l are: a. b. services on testing of measuring tools, measuring tool, weighing tool, and their accoutrements; testing on goods in wrapped condition, which is required in accordance with the provisions of statutory

regulations. Article 123 (1) Objects of Retribution on Education Services as referred to in Article 110 paragraph (1) letter m are services for the implementation of education and technical training by the Regional Government. (2) Exempted from Charges as referred to in paragraph (1) are the following: a. b. c. d. services for elementary and middle education carried out by the Regional Government; education/training organized by the Government; education/training organized by BUMN, BUMD; and education/training sector. Article 124 The Object of Retribution on Telecommunications Tower Control as referred to in Article 110 paragraph (1) letter n covers the usage of space for telecommunications towers with due observance to the aspects of spatial lay-out, safety and public interest. Article 125 organized by the private

(1)

The Subjects for Public Services Retribution shall be private persons or Entities using / enjoying the concerned public services.

(2)

The Parties Subject to Public Services Retribution shall private persons or Entities, which according to the statutory regulations of Charges are required to pay for Charges, including parties collecting or withholding Public Services Retribution. Third Part Business Services Retribution Article 126

The Objects for Business Services Retribution shall be services provided by the Regional/Local Government by adhering to the principles of commerciality, which include: a. services using / utilizing assets of the Region that have not been optimally used; and/or b. services by the Regional Government, provided that such have not been adequately provided for by the private sector.

Article 127 Types of Business Services Retribution are: a. b. c. d. e. f. g. h. i. j. k. Retribution for the Utilization of Regional Assets; Retribution for Wholesale Markets and/or Shops; Retribution for Auction Venues; Retribution for Terminals; Retribution for Parking Spaces; Retribution for Hotels / Lodgings / Villas; Retribution for Animals Slaughterhouses; Retribution for Port Services; Retribution for Recreational and Sports Centers; Retribution for Waters Crossing; and Retribution Businesses. Article 128 (1) The Object for the Retribution for Utilization of Regional Assets, as referred to in Article 127 letter a, shall be the utilization of regional assets. (2) Exempted from the definition of utilization of regional assets, as referred to in paragraph (1), is the utilization of land that does not alter the function of the said land. for Sale of Produces of Regional

Article 129 (1) The Object for the Retribution for Wholesale Markets and/or Stores, as referred to in Article 127 letter b, shall be the providing of wholesale markets facilities for various types of produces and markets/stores facilities that are leased, which are provided for / implemented by the Regional Government. (2) Exempted from the definition of object of Retribution, as referred to in paragraph (1), are market facilities provided, owned, and/or managed by BUMN, BUMD, and private sector. Article 130 (1) The Object for the Retribution for Auction Venues, as referred to in Article 127 letter c, shall be the providing of auction venues specifically provided by the Regional Government to auction fish, livestock, land produces, and forest products, including auction services and also other facilities provided in the auction venues. (2) Included as the Object for Retribution as referred to in paragraph (1) are venues leased by the Regional

Government from other parties to be used as auction venues. (3) Exempted from the Object for Retribution, as referred to in paragraph (1), are auction venues provided, owned, and/or managed by BUMN, BUMD, and the private sector. Article 131 (1) The Objects for the Retribution for Terminals, as referred to in Article 127 letter d, shall be the services of providing parking space for personal vehicles and public buses, business activities venues, and other facilities surrounding the terminals, which are provided, owned, and/or managed by the Regional Government. (2) Exempted from the Objects for Retribution, as referred to in paragraph (1), are the terminals provided, owned, and/or managed by BUMN, BUMD, and private sector. Article 132 (1) The objects for Retribution for Parking Space, as referred to in Article 127 letter e, shall be services for parking space provided, owned, and/or managed by the Regional Government.

(2)

Exempted from the Objects for Retribution, as referred to in paragraph (1), are parking space services provided, owned, and/or managed by BUMN, BUMD, and private sector. Article 133

(1)

The objects for Retribution for Hotels / Lodgings / Villas, as referred to in Article 127 letter f, Hotels / Lodgings / Villas services provided, owned, and/or managed by the Regional Government.

(2)

Exempted from the Objects for Retribution, as referred to in paragraph (1), are Hotels / Lodgings / Villas services provided, owned, and/or managed by BUMN, BUMD, and private sector. Article 134

(1)

The objects of Retribution for Animals Slaughterhouses, as referred to in Article 127 letter g, are animals slaughterhouse facilities, including livestock health examination before and after slaughter, provided, owned, and/or managed by the Regional Government.

(2)

Exempted from the Objects for Retribution, as referred to in paragraph (1), are Animals Slaughterhouses

facilities provided, owned, and/or managed by BUMN, BUMD, and private sector. Article 135 (1) The objects for Retribution for Parking Space, as referred to in Article 127 letter h, shall be Port Services, including other facilities within the dock, provided, Government. (2) Exempted from the Objects for Retribution, as referred to in paragraph (1), are Port Services provided, owned, and/or managed by BUMN, BUMD, and private sector. Article 136 (1) The objects for Retribution for Recreational and owned, and/or managed by the Regional

Sports Centers, as referred to in Article 127 letter i, shall be services in recreational, tourism, and sports centers provided, owned, and/or managed by the Regional Government. (2) Exempted from the objects for Retribution, as referred to in paragraph (1), are services for recreation, tourism, and sports centers provided, owned, and/or managed by BUMN, BUMD, and private sector.

Article 137 (1) The objects for Retribution for Waters Crossing, as referred to in Article 127 letter j, shall be services for crossing people or goods using vessels provided, owned, and/or managed by the Regional Government. (2) Exempted from the objects for Retribution, as referred to in paragraph (1), are crossing services managed by BUMN, BUMD, and private sector. Article 138 (1) The objects for Retribution for Sales of Produces of Regional Businesses, as referred to in Article 127 letter k, shall be Sales of Produces of Businesses of the Regional Government. (2) Exempted from the objects for Retribution, as referred to in paragraph (1), are sales of produces by the Government, BUMN, BUMD, and private sector. Article 139 (1) The Subjects of Business Service Retribution shall be private persons or Entities using/enjoying the

concerned business service. (2) The Parties Subject to Business Services Retribution shall be private persons or Entities, which according to the statutory regulations of Charges are required to pay Charges, including as parties collecting or withholding Business Service Charges. Fourth Part Certain Permits Retribution Article 140 The objects of Certain Permits Retribution shall be certain permits services by Regional Government for private persons or Entities, for the purpose of managing and monitoring activities of space usage, utilization of certain natural resources, goods, infrastructures, and facilities in order to protect public interest and preserve the environment. Article 141 Types of Certain Permits Retribution are: a. b. c. Retribution for Building Construction Permit; Retribution for Permits for Venues Selling Alcoholic Beverages; Retribution for Disturbance Permits;

d. e.

Retribution for Routing Permits; and Retribution for Fishery Business Permits. Article 142

(1)

The Object for Retribution for Building Construction Permit, as referred to in Article 141 letter a, shall be the granting of permit for building construction.

(2)

The granting of permit as referred to in paragraph (1) shall include the activities of supervising designs and monitoring the implementation of construction to be in accordance with the building technical plans and lay out plans, with due observance to the building foundation coefficient (KDB), building area coefficient (KLB), and supervision of the utilization of the building, which includes examination in the event of fulfilling the safety requirements for the occupants of the building.

(3)

Exempted from the objects for Retribution, as referred to in paragraph (1), is the granting of permit for buildings owned by the Government of Regional Government. Article 143

The object of Retribution for Permits for Venues Selling Alcoholic Beverages, as referred to in Article 141 letter b, shall be the granting of permit to sell alcoholic beverages in a certain venue. Article 144 (1) The object for Retribution for Disturbance Permit, as referred to in Article 141 letter c, shall be the granting of permit for a place for business / activity to private persons or Entities, which may cause threats of danger, losses, and/or disturbance, including continuous monitoring and controlling of business activities to prevent disturbance on order, safety, or public health, maintaining the order of the environment, and fulfilling the norms of safety and health at work. (2) Exempted from the objects for Retribution, as referred to in paragraph (1), are the places of business / activities stipulated by the Government or Regional Government. Article 145 The object for Retribution for Routing Permit, as referred to in Article 141 letter d, shall be the granting of permit to

private persons or Entities to provide public transportation services on one or several certain routes. Article 146 The object for Retribution for Fishery Business Permit, as referred to in Article 141 letter e, shall be the granting of permit to private persons or Entities to engage in business activities of catching and cultivating fish. Article 147 (1) The Subjects of Certain Permits Retribution shall be private persons or Entities granted with certain permits by the Regional Government. (2) The Parties Subject to Certain Permits Retribution shall be private persons or Entities, who, according to the statutory regulations of Charges, are required to pay Charges, including as parties collecting or withholding Certain Permits Retribution. Article 148 The procedures of the granting of the certain permit as referred to in Article 141 shall be in accordance with the statutory regulations.

Fifth Part Types, Details, Objects, and Criteria of Charges Article 149 (1) Types of General Services Retribution and Certain Permit Retribution, as referred to in Article 110 paragraph (1) and Article 141, for provinces and districts are in accordance with the authority of the respective Regional as regulated in the statutory regulations. (2) Types of Business Services Retribution, as referred to in Article 127, for provinces and districts, are in accordance with services provided by respective Regional. (3) Details of types of objects of respective Charges, as referred to in Article 110 paragraph (1), Article 127, and Article 141 are regulated in the concerned Regional Regulations. Article 150 Types of Charges other than the ones stipulated in Article 110 paragraph (1), Article 127, and Article 141, with stipulation that they meet the following criteria:

a.

Public Services Retribution: 1. Public Services Retribution that is not tax and nor 2. Business Services Retribution nor Special Permit Retribution; The concerned services constitute the authority of the Regional in the event of implementation of decentralization; 3. The services mentioned provide special benefits for private persons or Entities required to pay Charges, aside from serving public interest and benefits; 4. The services mentioned are provided only for private persons or Entities paying the charges by providing relief for incapable people; 5. 6. Charges are not may in be contrary collected of the national and policies concerning their implementation; Retribution effectively efficiently, and it also constitutes one of the potential sources of Regional income; and 7. Collection of Charges enables better providing of such services.

b.

Business Services Retribution 1. Business Services Retribution are not tax nor Business Services Retribution nor are they Special Permit Charges; and 2. the concerned services are commercial services

that should be provided by the private sector but still inadequate, or assets owned / controlled by the Region yet to be fully utilized by the Regional Government. c. Certain Permits Retribution: 1. The permits mentioned include the governmental authority given to the Region in the event of decentralization principle; 2. 3. The permits mentioned are necessary in order to protect public interest; and The costs imposed on the Region in the implementation of such permits and the costs to overcome the negative impacts of the granting of such permits are quite significant, therefore it is appropriate to fund the aforementioned from the permits charges; are stipulated by the Government Regulations. Sixth Part Methods of Calculation of Charges Article 151 (1) The amount of owed Charges shall be calculated by manner of multiplying the level of services utilization with the Charges tariff.

(2)

The level of services utilization as referred to in paragraph (1) shall be the number of services utilization applied as the basis for allocation of costs borne by the Regional Government in providing the concerned services.

(3)

Should

the

level

of

the

services

utilization

as

referred to in paragraph (1) be difficult to measure, therefore the level of services utilization may be estimated based on the formula established by the Regional Government. (4) The formula as referred to in paragraph (3) should reflect the costs borne by the Regional Government in providing such services. (5) Tariff of Charges as referred to in paragraph (1) shall be a certain value in Rupiah or percentage established to calculate the amount of owed Charges. (6) Tariff of Charges as referred to in paragraph (1) may be established as uniformed or varied based on level, in accordance with the principles and targets of stipulation of tariff of charges. Seventh Part Principles and Targets of Stipulation of Tariff of

Charges Article 152 (1) The Principles and Targets of Stipulation of Tariff of Public Services Retribution shall be stipulated with due observance to the costs of providing the concerned services, capability of the community, aspects of justice, and effectiveness of control over such services. (2) Costs as referred to in paragraph (1) shall include operational and maintenance costs, interest costs, and capital expenditure. (3) The stipulation of tariff is conducted with due

observance to the costs in providing the services, the stipulation of tariff is only to cover part of the costs. (4) Charges for Compensation of Printing Residential

Identity Cards and Retribution for Compensation of Printing Maps shall only calculate the printing and administration costs. Article 153

(1)

The principles and targets in stipulation of the tariff of Business Services Retribution are based on the purpose of gaining adequate profit.

(2)

Adequate profit as referred to in paragraph (1) shall be the profit gained when such business services are done efficiently and market price oriented. Article 154

(1)

The principles and targets in stipulation of the Certain Permits Retribution shall be based on the purpose to cover part or all costs in granting the concerned permits.

(2)

The costs in granting the permits as referred to in paragraph (1) shall include issuance of permit documents, monitoring on the field, law enforcement, administration, and costs of negative impact of granting such permits. Article 155

(1)

Tariff of Charges shall be reviewed at the longest once in every 3 (three) years.

(2)

Review of such Charges Tariff as referred to in paragraph

(1) shall be conducted with due observance to the price index and economic development. (3) Stipulation of Tariff of Charges as referred to in paragraph (2) shall be stipulated by the Regulations of Head of District. CHAPTER VII STIPULATION AND CONTENT REGULATED IN REGIONAL REGULATIONS ON CHARGES Article 156 (1) (2) Charges are determined by Regional Regulations. Regional Regulations concerning Charges are not

retroactive. (3) Regional Regulations concerning Charges shall at least regulate provisions pertaining to: a. b. c. d. Name, object, and the Parties Subject to Charges; Group of Charges; Method in measuring the level of utilization of the concerned services; Principles applied in stipulating the structure and the level of tariff of Charges;

e. f. g. h. i. j. k. (4)

Structure and level of Tariff of Charges; Territory of collection; Stipulation of payment, location of payment, installments, and postponement of payment; Administrative penalty; Billing; Waiver of Charges receivables that have expired; Effective date. Regulations concerning Charges may also

Regional a. b.

regulate provisions pertaining to: Period of Charges; Granting of relief, reduction, and release in certain matters on principal Charges and/or the sanctions thereof; and/or c. Procedures for waiver of Charges receivables that have expired. (5) Reduction and relief as referred to in paragraph (4) letter b shall be granted with due observance to the capability of the Parties Subject to Charges. (6) Release from Charges as referred to in paragraph (4) letter b shall be granted with due observance to the function of Charges objects. (7) Regional Regulations for types of Charges that are

included in the Certain Permits Retribution must first be socialized to the community before promulgation. (8) Further stipulations of concerning of the methods and of

mechanisms

implementation

socialization

Regional Regulations as referred to in paragraph (7) are regulated with Regulations of Head of District. CHAPTER VIII MONITORING AND CANCELLATION REGIONAL REGULATIONS CONCERNING TAXATION AND CHARGES Article 157 (1) Draft of provincial Regional Regulations concerning Taxation and Charges jointly approved by the governor and provincial DPRD must be submitted to the Minister of Domestic Affairs and Minister of Finance before its promulgation, at the longest 3 (three) business days from the date of the said approval. (2) Draft of district/town Regional Regulations concerning Taxation and Charges jointly approved by the district heads/mayors and district/town DPRD must be submitted to the governor and Minister of Finance, at the longest 3 (three) business days from the date of the said approval.

(3)

Minister of Domestic Affairs shall conduct an evaluation on the Draft of the Regional Regulations as referred to in paragraph (1) to assess the adequacy of the said Draft of Regional Regulations with the stipulations of this Law, public interest, and/or other superior statutory regulations.

(4)

The

Governor

shall

conduct

an

evaluation

on

the

Draft of the Regional Regulations as referred to in paragraph (2) to assess the adequacy of the said Draft of Regional Regulations with the stipulations of this Law, public interest, and/or other superior statutory regulations. (5) Minister of Domestic Affairs and the governor, in conducting the evaluation as referred to in paragraphs (3) and (4), shall coordinate with the Minister of Finance. (6) The results of evaluation, which have been coordinated with the Minister of Finance as referred to in paragraph (5), may be in the form of approval or rejection. (7) The results of evaluation as referred to in paragraph (6) shall be conveyed by Minister of Domestic Affairs to the governor for the provincial Draft of Regional

Regulations and by the governor to the district heads / mayors for the district/town Draft of Regional Regulations within a period of at the longest 15 (fifteen) business days after the receipt of the said Draft of Regional Regulations. (8) The results of evaluation in the form of rejection as referred to in paragraph (6) shall be conveyed along with the reason for the rejection. (9) In the event that the results of the evaluation are in the form of approval as referred to in paragraph (6), the said Draft of Regional Regulations may be promulgated immediately. (10) In the event that the results of the evaluation are in the form of rejection as referred to in paragraph (6), the said Draft of Regional Regulations may be revised by the governor, district head / mayor together with the concerned DPRD, to thereafter be returned to the Minister of Domestic Affairs and Minister of Finance, for the provincial Draft of Regional Regulations, and to the governor and Minister of Finance, for district/ town Draft of Regional Regulations. Article 158

(1)

Regional Regulations that have been promulgated by the governor/district head/mayor are to be submitted to the Minister of Domestic Affairs and Minister of Finance at the longest 7 (seven) business days after such promulgation.

(2)

In the event that the Regional Regulations are in contrary recommend to public interest and/or of the other said superior Regional statutory regulations, the Minister of Finance shall the cancellation Regulations to the President through the Minister of Domestic Affairs.

(3)

Conveyance

of

cancellation

recommendation

by

the

Minister of Finance to the Minister of Domestic Affairs as referred to in paragraph (2) shall be conducted at the longest 20 (twenty) business days after the receipt of Regional Regulations as referred to in paragraph (1). (4) Based on the cancellation recommendation conveyed by the Minister of Finance, the Minister of Domestic Affairs shall submit a request for cancellation of the said Regional Regulations to the President. (5) The decision to cancel the Regional Regulations as referred to in paragraph (4) is stipulated with the

Presidential Decree at the longest 60 (sixty) business days after the receipt of the Regional Regulations as referred to in paragraph (1). (6) At the longest 7 (seven) business days after the decision to cancel as referred to in paragraph (5), the District Head must terminate the implementation of the Regional Regulations, and thereafter the DPRD, together with the District Head, shall revoke the said Regional Regulations. (7) Should the province/district/town not accept the

decision to cancel the Regional Regulations as referred to in paragraph (5) with reasons supported by the statutory regulations, District Head may submit an objection to the Supreme Court. (8) Should the objection as referred to in paragraph (7) be granted, partly or wholly, the said ruling of the Supreme Court shall stipulate the Presidential Decree as null and without legal power. (9) Should the Government not issue the Presidential

Regulation to cancel the Regional Regulations as referred to in paragraph (5), the said Regional Regulations shall be deemed as effective.