Minister of Industry Regulation

No. 34/M-IND/PER/9/2017

On

Four-wheeled Motorized Vehicles or More Industry

By the Grace of the God Almighty

Minister of Industry of the Republic of Indonesia

Considering:

a. Whereas, in order to increasing investment in the filed of manufacturing, starting from the
national production of components to produce a globally competitive four-wheeled
motorized vehicles industry, for the purpose of developing and advancing the manufacturing
of four-wheeled motorized vehicle industry;
b. Whereas, for the purpose of supporting the development and advancement of four-wheeled
motorized vehicles industry as stated in letter a, and it is necessary to re-regulate the
provisions of the level of completeness and decomposition of imported vehicles as arranged
on Minister of Industry Regulation Number 59/M-IND/PER/5/2010 on Motorized Vehicle
Industry;
c. Whereas based on the considerations as stated in letter a and b, it is necessary to stipulate
the Regulation of Minister of Industry on four-wheeled vehicle or more industry.

Considering:

1. Law Number 3/2014 on Industry (State Gazette of Republic of Indonesia Number 4/2014,
Supplement to State Gazette of Republic of Indonesia Number 5492);
2. President of the Republic of Indonesia Regulation Number 29/2015 on Ministry of Industry
(State Gazette of the Republic of Indonesia Number 54/2015);
3. Minister of Industry of the Republic of Indonesia Number 107/M-IND/PER/11/2015 on
Organizational and Functioning of Ministry of Industry (State Gazette of the Republic of
Indonesia Number 1806/2015)

DECIDING:

To stipulate: REGULATION OF THE MINISTER OF INDUSTRY ON FOUR-WHEELED MOTORIZED VEHICLES

OR MORE INDUSTRY.

CHAPTER I

GENERAL PROVISIONS

Article 1

The following terms apply to this Minister Regulation:

1. Four-wheeled or More Motorized Vehicle is a motorized vehicle as defined in Sub Post
8701.20, Post 87.02, Post 87.03, Post 87.04 and Post 87.05
2. Four-wheeled or More Motorized Vehicle Company Industry is an industrial company
established and operating in Indonesia to conduct motorized vehicle manufacturing process
and having industrial business license with KBLI 29100 for Four-wheeled or More Motorized
Vehicle.
3. A
4. Sedan is motorized vehicle with the characteristics of having three (3) boxes which consists of
enginee chamber, passenger cabin and baggage room with permanent separators with no
more than 2 (two) rows of seats.
5. Passenger Car (4x2) is a motorized vehicle other than sedan which used to transport less than
10 (ten) Passengers with two-wheeled drive system.
6. Passenger Car (4x4) is a motorized vehicle for passenger transportation other than sedan
which used to transport less than 10 (ten) Passengers with four-wheeled drive system.
7. Bus is motorized vehicle for transportation of ten or more passengers, including the driver.
8. Goods transportation vehicle is motorized vehicle for goods Transportation.
9. Road Tractor for Semi Trailer or Tractor Head is a constructed vehicle which used mainly for
towing.
10. A
11. Four-wheeled or More Motorized Vehicle in Completely Knocked Down / CKD, hereinafter
stated as CKD Motorized vehicle is a four-wheeled or more motorized vehicle or motorcycle
in a knocked down condition which consists of at least the Main components of Motorized
vehicle which used for manufacturing motorized vehicle.
12. Four-wheeled or More Motorized Vehicle in Incompletely Knocked Down / IKD, hereinafter
stated as IKD Motorized vehicle is four-wheeled or more motorized vehicles in a incompletely
knocked down condition which used for manufacturing motorized vehicle.
13. Motorized vehicle Components is a parts of the motorized vehicle needed to function a
motorized vehicle.
14. Main Components of Motorized vehicle is a parts of the motorized vehicle which having core
function of motorized vehicle.
15. Body connection is activity on body assembly process which can be conducted by jointed,
glued, screwed, riveted, and other similar ways.
16. A
17. A
18. Motorized Vehicle Identification Number hereinafter stated as VIN is a combination of
alphanumerical characters installed/printed on the motorized vehicle by the Four-wheeled or
More Motorized vehicle Company Industry for purposes of identification according to SNI 09-
1411-2000 or its revision.
19. A
20. Letter of Stipulation of Company Code is a document issued by the Director General which
confirms the Four-wheeled or More Motorized vehicle Industry Company Industry is entitled
to apply Motorized Vehicle Identification Number (VIN).
21. Company Code consist of the first 3 (three) characters of 17 (seventeen) characters on VIN.
22. Letter of Recognition of Agent licensee of Motorized vehicle is a recognition letter given by
the Minister to national company to conduct the assembly/production/manufacture of
motorized vehicle.
 23. Minimum Description is the condition of minimum description which shall be fulfilled by the
goods description so it could be imported by CKD Motorized Vehicle or IKD Motorized Vehicle
scheme.
24. Minimum Completeness is the minimum amount of type on goods description which could be
imported with CKD Motorized Vehicle scheme.
25. A
26. Vehicle Set Value is the price of one set of CKD Motorized Vehicle or IKD Motorized Vehicle
which used for assembly purposes by the Four-wheeled or More Motorized Vehicle Company
Industry, which is calculated based on the import price of CKD Motorized Vehicle or IKD
Motorized Vehicle plus insurance premium and the cost of cargo to the designated port.
27. A
28. Letter of Approval of Non IKD Importation is a letter states that a Four Wheeled or More
Motorized vehicle Company Industry may import components that already manufactured
nationally and listed on ___.
29. The Director General is Director General whom having duties, function, and authorities to
conduct the development on Four-Wheeled or More Motorized vehicle Industry for the
Ministry which conducts government affairs in the field of industry.
30. The Director is a Director who has the duties, functions and authority to conduct the
development/coaching on Four-Wheeled or More Motorized vehicle Industry for the Ministry
which conducts government affairs in the field of industry.

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Article 21

Vehicle Set Value for IKD Motorized Vehicle as stipulated in Article 19 paragraph (3) point c is applied
at least Rp150.000.000,000 (one hundred and fifty million rupiah).

Article 22

(1) Unconnected and unpainted body condition as stipulated in Article 20 paragraph (2) could be
excluded for IKD Motorized Vehicle which used for motorized vehicle production as stipulated in
Article 19 paragraph (3) point c.
(2) IKD Motorized Vehicle imports with the body condition as stipulated in paragraph (1) is given with
the following conditions:
a. Maximum import quantity is 5.000 (five thousand) set / type / year; or
b. Import quantity is over 5.000 (five thousand) set / type / year where the difference over 5.000
(five thousand) set / type / year is designated for export.
(3) The exception for IKD Motorized Vehicle as stipulated in article (1) shall fulfill the Minimum
Description and Maximum Completeness as stipulated in Article 20 paragraph (1) and paragraph
(3).
(4) Minimum Description and Maximum Completeness as stipulated in paragraph (3) is listed in Table
I-D; Table I-F; and Table I-H in Attachment I which is an inseparable part of this Ministerial
Regulation.
(5) IKD Motorized Vehicle imports with the body conditions as stipulated in paragraph (1) shall fulfill
the provisions of Vehicle Set Value as stipulated in Article 21.

Article 23
(1) Four-wheeled or More Motorized Vehicle Company Industry using the IKD Motorized Vehicle for
the production of vehicle type as stipulated in Article 19 paragraph (3) point c shall use the
Motorized Vehicle Components from within the country.
(2) The use of Motorized Vehicle Components from within the country as stipulated in paragraph (1)
is done by:
a. Self production of Motorized Vehicle Components;
b. Subcontract the production of Motorized Vehicle Components to other party from within the
country; and/or
c. Using the Motorized Vehicle Components which produced from within the country.
(3) The use of Components from within the Country as stipulated in paragraph (1) and paragraph (2)
is done with the maximum period of 5 (five) years since the issuance of Letter of Approval of IKD
Motorized Vehicle Importations.
(4) The use of Components from within the Country is listed in the planning documents on the use of
Motorized Vehicle Components from within the country.
(5) The list of Motorized Vehicle Components from within the country which has produced by the
manufacturer from within the country as stipulated in paragraph (2) point c is listed in Attachment
II which is an inseparable part of this Ministerial Regulation.

Article 24

The obligation to use Motorized Vehicle Components from within the country as stipulated in Article
23 is done by Company Industry which manufacture Four-wheeled or More Motorized Vehicle as
stipulated in Article 19 paragraph (3) point c is in the form of:

a. Sedan, using at least 7 (seven) type of Motorized Vehicle Components;

b. Sedan with the body condition which has been connected and painted, using at least 5 (five) type
of Motorized Vehicle Components;
c. Passenger Vehicle (4x2), using at least 7 (seven) type of Motorized Vehicle Components;
d. Passenger Vehicle (4x2), with the body condition which has been connected and painted using at
least 5 (five) type of Motorized Vehicle Components;
e. Passenger Vehicle (4x4), using at least 7 (seven) type of Motorized Vehicle Components;
f. Passenger Vehicle (4x4), with the body condition which has been connected and painted using at
least 5 (five) type of Motorized Vehicle Components.

Article 25

The importations of IKD Motorized Vehicle as stipulated in Article 19 is done by the Letter of Approval
from the Director General.

Article 26

(1) Proposal for the Letter of Approval as stipulated in Article 25 is proposed to the Director General
using the form listed in Format C of Attachment III which is an inseparable part of this Ministerial
Regulation and attach the following documents:
a. Copy of Industry Business License;
b. Copy of Letter of Appointment on Company Code;
c. Copy of TDP;
d. Copy of Brand Registration Letter from the agency/institution which carry out the
governmental function in intellectual property, or an agreement to manufacture a Motorized
Vehicle with the principals brand;
e. List of manufacturing tools;
 f. IKD Motorized Vehicle importation plan for 1 (one) year;
g. Manufacturing realization on the imported IKD Motorized Vehicle; and
h. A legalized subcontracting agreement by the notary, for Industry Company which
subcontracted the manufacture process to the industry company from within the country.
(2) In the event of Four-wheeled or More Motorized Vehicle Company Industry performed an IKD
Motorized Vehicle importations for vehicle types as stipulated in Article 19 paragraph (3) point c,
the proposal of Letter of Approval as stipulated in paragraph (1) with the plan to use Motorized
Vehicle Components from within the country enclosed.

Article 27

(1) The Director General perform an examination on such proposal as stipulated in Article 26.
(2) Such examination as stipulated in paragraph (1) at least includes:
a. Examination on company legality;
b. Examination on import plan and realization;
c. Examination on production plan and realization; and
d. Examination on the use of Motorized Vehicle Components from within the country plan and
realization.

Article 28

(1) Based on such examination as stipulated in Article 27, the Director General issues the Letter of
Approval on IKD Motorized Vehicle importations with the longest period of time of 5 (five) working
days after the requirements accepted completely and correctly.
(2) Such Letter of Approval as stipulated in paragraph (1) is valid for 1 (one) year period since the date
of issuance.

Article 29

Four-wheeled or More Motorized Vehicle Company Industry which did not perform the provisions of
the Use of Components from within the Country as stipulated in Article 23 and Article 24 is charged
with an administrative sanction in a form of:

a. Revocation of Letter of Approval as stipulated in Article 28; and

b. Non-issuance for the next Letter of Approval.

CHAPTER III

Excluded Components for IKD Motorized Vehicle

Article 30

(1) Four-wheeled or More Motorized Vehicle Company Industry could manufacture the excluded
components for IKD Motorized Vehicle as stipulated in Article 20 paragraph (3) point b and
paragraph (5) by:
a. Self manufacture the Motorized Vehicle Components;
b. Subcontract the manufacture of Motorized Vehicle Components to other party from within
the country;
c. Using the Motorized Vehicle Components which manufactured by the manufacturer from
within the country; and/or
d. Importations.
(2) Such importations as stipulated in paragraph (1) point d is done in accord with the components
own post tariff.
(3) Such importations as stipulated in paragraph (1) point d could be performed after the issuance of
Letter of Approval of Non IKD Importation from the Director General.

Article 31

The proposal of Letter of Approval of Non IKD Importation as stipulated in Article 30 is proposed to
the Director General using the form attached in Format E in Attachment III which is an inseparable
part with this Ministerial Regulation and enclose the following documents:

a. Copy of Industry Business License;

b. Copy of Letter of Appointment on Company Code;
c. Copy of TDP;
d. Copy of Brand Registration Letter from the agency/institution which carry out the governmental
function in intellectual property, or an agreement to manufacture a Motorized Vehicle with the
principals brand;
e. Excluded components from IKD Motorized Vehicle importation plan;
f. Production realization on IKD Motorized Vehicle performed; and
g. Statement letter which states the reason on excluded components importations from IKD
Motorized Vehicle.

Article 32

(1) The Director General conduct an examination on such proposal as stipulated in Article 31.
(2) Such examination as stipulated in paragraph (1) at least includes:
a. Examination on company legality;
b. Examination on import plan and realization; and
c. Examination on production plan and realization.

Article 33

(1) Based on the examination result as stipulated in Article 32, the Director General issues the Letter
of Approval of Non IKD Importation in at least 5 (five) working days after the requirements are
completely and correctly accepted.
(2) Such Letter of Approval of Non IKD Importation as stipulated in paragraph (1) is valid for 1 (one)
year period since the date of issuance.
(3) The Director General could delegate the authority to issue such Letter of Approval of Non IKD
Importation as stipulated in paragraph (1) to the Director.
(4) Letter of Approval of Non IKD Importation uses the format as attached in Format F in Attachment
III which is an inseparable part of this Ministerial Regulation.

Article 34

Components importations based on the Letter of Approval of Non IKD Importation could be conducted
along with the importations of IKD Motorized Vehicle based on the Letter of Approval and enclosed in
1 (one) customs notification documents.

CHAPTER IV

Report and Supervision

Part One

Report
 Article 35

(1) Four-wheeled or More Motorized Vehicle Company Industry with such Letter of Approval as
stipulated in Article 18, Article 28, and/or Article 33 shall report the import and manufacture
realization to the Director General periodically every 6 (six) month since the issuance of Letter of
Approval.
(2) Four-wheeled or More Motorized Vehicle Company Industry with the Letter of Approval using the
IKD Motorized Vehicle to manufacture such vehicle type as stipulated in Article 19 paragraph (3)
point c, shall give the report of the use of Motorized Vehicle Components from within the country
realization to the Director General periodically every 1 (one) year since the issuance of Letter of
Approval.
(3) Four-wheeled or More Motorized Vehicle Company Industry which did not convey such report as
stipulated in paragraph (1) or paragraph (2) is charged with administrative sanction by a non-
issuance of Letter of Approval for the next period.

Part Two

Supervision

Article 36

(1) The Director General conduct an examination to the Four-wheeled or More Motorized Vehicle
Company Industry as an act of compliance to the implementation of this Ministerial Regulation.
(2) Such supervision as stipulated in paragraph (1) is conducted periodically once every 1 (one) year
and any time if necessary.
(3) When conducting such supervision as stipulated in paragraph (1), the Director General could
coordinate with the related institution, Province Government, and/or Local Government.
(4) Four-wheeled or More Motorized Vehicle Company Industry which did not fulfill the provisions in
this Ministerial Regulation is charged with an administrative sanction of a non-issuance of Letter
of Approval for the next period.

Article 37

(1) The ministry which conduct the governmental function in customs and excises could conduct a
supervision and examination on the Four-wheeled or More Motorized Vehicle Company Industry
which manufactures a CKD Motorized Vehicle or IKD Motorized Vehicle.
(2) Such supervision and examination as stipulated in paragraph (1) could be conducted to other
company within the country which partly or wholly accept the implementation of manufacture
process as stipulated in Article 4 paragraph (1) point b.

Chapter VI

Closing

Article 38

(1) Lower limit of the Vehicle Set Value as stipulated in Article 13 paragraph (3) and Article 21 could
be amended:
a. In the quickest period of time of 2 (two) years after the enforcement of this Ministerial
Regulation; and
 b. In the event of changes in rupiah exchange rate to United States dollar of 25% (twenty five
percent) compared to the middle exchange rate of Bank Indonesia by the end of year 2016 of
Rp13.436,00 (thirteen thousand four hundred thirty six rupiah) for 1 (one) United States
Dollar.
(2) Such change of price as stipulated in paragraph (1) is set through a Ministerial Regulation.

Article 39

By the time of the enforcement of this Ministerial Regulation, the Ministry of Industry Regulation No.
59/M-IND/PER/5/2010 on Motorized Vehicle Industry (Indonesian State Gazette year 2010 No. 257),
as long as the provisions on Four-wheeled or More Motorized Vehicle Company Industry, is revoked
and deemed invalid.

Article 40

This Ministerial Regulation is valid 3 (three) months after the issuance.