Regulation Of The Minister Of Industry Number 03/m-Ind/per/1/2014 2014

Original Language Title: Peraturan Menteri Perindustrian Nomor 03/M-IND/PER/1/2014 Tahun 2014

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Back NEWS REPUBLIC of INDONESIA No. 46, 2014 KEMENPERIN. Domestic Products. Item/Jasa. The Government. A GRANT. The guidelines.

REGULATION of the MINISTER of INDUSTRY of the REPUBLIC of INDONESIA number 03/M-IND/PER/1/2014 REGARDING GUIDELINES for the INCREASED USE of DOMESTIC PRODUCTS in GOVERNMENT PROCUREMENT OF GOODS/services that are NOT FINANCED FROM the BUDGET of the STATE EXPENDITURES and INCOME/REVENUE and BUDGET SHOPPING AREA with the GRACE of GOD ALMIGHTY MINISTER of INDUSTRY of the REPUBLIC of INDONESIA, Considering: a. that in order to enhance the capabilities and capacity as well as the optimal role of producer goods and service companies in the country in support of national importance , the need to encourage the increased use of domestic production;
b. that, in order to implement the provisions of the second dictum presidential instruction No. 2 of 2009 on the use of domestic products In Government procurement of goods/services, the need to draw up guidelines for the increased use of domestic production;
c. that based on considerations as referred to in letter a and letter b, need to establish the regulation of the Minister of industry about the use of the guidelines on domestic products In Government procurement of goods/services that are not financed from the Budget of the State Expenditures and Income/revenue and Budget Shopping Area;
Remember: 1. Act No. 5 of 1984 on Industry (State Gazette of the Republic of Indonesia number 22 in 1984, an additional Sheet of the Republic of Indonesia Number 3274);
2. Act No. 18 of 1999 about construction services (State Gazette of the Republic of Indonesia Number 54 in 1999, an additional Sheet of the Republic of Indonesia Number 3794);
3. Act No. 22 of 2001 concerning oil and Gas (State Gazette of the Republic of Indonesia year 2001 Number 136, Supplement State Gazette Indonesia 4152);
4. Act No. 19 of 2003 about State-owned enterprises (State Gazette of the Republic of Indonesia number 70 in 2003, an additional Sheet of the Republic Indonesia 4297);
5. Act No. 4 of 2009 about Mineral and Coal Mining (State Gazette of the Republic of Indonesia number 4 in 2009, an additional Sheet of the Republic Indonesia 4959);
6. Presidential regulation Number 67 in 2005 about the Government's Cooperation with the Agency's efforts in the provision of Infrastructure as it has several times changed the last presidential regulation Number 56 in 2011;
7. Presidential regulation Number 47 in 2009 on the establishment of Ministries and organizations as it has several times changed the last presidential regulation Number 91 in 2011;
8. Presidential regulation Number 24 of 2010 about the position, duties and functions of the Ministries as well as the Organization, duties and functions of the Echelon I Ministries as it has several times changed the last presidential regulation Number 92 in 2011;
9. Presidential regulation Number 54 in 2010 about Government procurement of goods/services as it has several times changed the last presidential regulation Number 70 in 2012;
10. Presidential Decree Number 83/P in 2009 on the establishment of a United Indonesia Cabinet II Period of 2009-2014 as amended by presidential decree number 59/P in 2011;
11. Regulation of the Minister of industry Number 105/M-IND/PER/10/2010 about the Organization and the Work of the Ministry of industry;
Decide: define: REGULATION of the MINISTER of INDUSTRY REGARDING GUIDELINES for the INCREASED USE of DOMESTIC PRODUCTS in GOVERNMENT PROCUREMENT OF GOODS/services that are NOT FINANCED FROM the BUDGET of the STATE EXPENDITURES and INCOME/REVENUE and BUDGET SHOPPING area.
CHAPTER I GENERAL PROVISIONS Section I Definitions article 1 In this ministerial regulation is: 1. Industry is the economic activity that manipulate raw materials, raw materials, intermediate goods, and finished goods into goods with higher value for its use, including the activities of an engineering and architecture industry.
2. Domestic products are goods/services including architecture and an engineering produced or carried out by industrial companies which invest and produce in Indonesia.
3. Government procurement of goods/services that are not financed from STATE BUDGET/procurement BUDGETS are financed from the budget of State-owned enterprises, Regional-owned enterprise, a Non Governmental ministries, Public Service Agencies, Universities, the legal entity of the same employment contract, Contractor business entity business license holder of mining (IUP) or contract Work/Work Entrepreneurs coal mining Agreement (Cca), as well as procurement in the framework of cooperation of Government and private sector.
4. The goods are any good things tangible or intangible, movable or immovable, which can be traded, worn, used or exploited by users of the goods, the specifications set by the user.
5. The service is a service job that includes construction services including integrated construction services, consultancy services, and other services, the technical planning and user defined specifications as well as the process of its implementation is supervised by the user.
6. Integrated construction services (Engineering, Procurement Services and Construction/service EPC), hereinafter called the EPC services, planning services, procurement of materials and equipment, service implementation and oversight services of the implementation of a integrated.
7. Level the domestic Component, hereinafter referred to TKDN, is the magnitude of domestic components in composite goods, the goods, services, the combined services, as well as the combined goods and services.
8. Weighting the benefits the company, hereinafter referred to as BMP, is the value of the award to companies that invest in Indonesia because of empowering micro and small businesses as well as cooperatives through partnership, maintain health, safety, and environment (K3L), having a certificate of quality management system, and provide on-site maintenance and after-sales service.
9. Verification is an activity that is performed by an independent Surveyor to count close to TKDN goods/services and BMP with the data which is taken or collected from the business activities of industrial companies or providers of goods/services.
10. The list of goods/services inventory of domestic production is a list of domestic-made products, which contain the name and address of the manufacturer, product type, specification, standard, capacity, product TKDN, and close to the BMP published by the Minister.
11. Clarifications were requested further explanation of the activity by the user to the Ministry of industry of product TKDN in the list of goods/services inventory of domestic production.
12. The user authorizes the holder of the official use of the budget at the State-owned enterprises/business entity belonging to the area of Non Government agencies, ministries, Bank Indonesia, Lps, the financial services authority, public service Agencies, Universities, the legal entity of the same employment contract, Contractor business entity holder of IUP/Works Contracts/Agreements Employment Entrepreneur coal mining, and Government and private cooperation projects.
13. Goods/Services Provider is an individual or business entity that the activities of its business providing goods/construction works/services/Consultancy Services etc.
14. The manufacturer is a business entity or individual person that its business activities to produce goods/services.
15. The preference Price is a value adjustment or normalization of the price against the price of the offer in the process of procurement of goods/services.
16. The contractor is a business entity or a business form, which was given the authority to carry out exploration and exploitation in the area work based on a contract of cooperation with Special Work Unit business activities Upstream Oil and Gas;
17. the Minister is the Minister of the organizing Affairs of the Government in the field of industry.
The second part of the scope of article 2 (1) the scope of the setting in the guidelines of the increased use of domestic products In Government procurement of goods/services that are not financed from STATE BUDGET/GRANT include: a. domestic products;
b. Service Pemanfataan service company In the country;
c. levels of Domestic Component and Weight Benefits company;
d. list of goods/services inventory of domestic production;
e. verification of TKDN;
f. Monitoring, evaluation, and reporting; and g.  Sanctions.
(2) the use of domestic products in government procurement of goods/services that are not financed from STATE BUDGET/GRANT applies to the procurement of goods/services that affect the finances of the State, which include: a. State-owned enterprises/business entity belonging to the region;
b. Non Governmental ministries, Bank Indonesia, Lps, and the financial services authority;
c. public service Body (BLU);
d. College of State legal entities;
e. Contractor Partnership Contract (KKKS);
f. business entity business license holder of mining (IUP) or contract Work/Work Entrepreneurs coal mining Agreement (Cca); and g.  The pattern of the cooperation of Government and private;
CHAPTER II DOMESTIC PRODUCTS is considered Part of the use of domestic products of article 3 (1) the use of domestic products In Government procurement of goods/services that are not financed from STATE BUDGET/GRANT is an effort to drive growth and empowering the existing industries in Indonesia, including the granting of awards for the producers in the country.
(2) the award referred to in subsection (1) in the form of liability the use of domestic products and/or the granting of preferences rates on goods/services procurement process of Government which are not financed from STATE BUDGET/BUDGETS.

(3) the liability of the use of domestic products and/or the granting of a preference price as referred to in paragraph (2) from the procurement planning by the users, in the implementation of procurement by procurement Committee, and supervision by the internal and external supervisory institutions.
The second part of provision of the domestic product of article 4 (1) the inclusion of requirements for the use of domestic products in the planning stages of procurement referred to in article 3 paragraph (3) include the following: a. the preparation of public procurement plans;
b. preparation of the technical specifications or terms of reference; and c.  the preparation of Estimated Own Price (HPS).
(2) preparation of the technical specifications or terms of reference referred to in subsection (1) letter b, mandatory refers to the ability of the domestic industry.
(3) preparation of HPS as referred to in paragraph (2) Letter c, the obligatory reference to the reasonableness of the prices of domestic products.
(4) in the preparation of procurement documents, the Committee lists the mandatory requirements in the procurement of domestic products that must be used.
(5) the implementation of a technical evaluation by the Committee taking into account the mandatory procurement capabilities of domestic industry.
(6) supervision of the use of domestic products as mentioned in article 3 paragraph (3) was done with attention to consistency and commitment TKDN of goods/services providers at the moment following the auction in accordance with the provisions of the legislation.
Article 5 of the plan of government procurement of goods/services that are not financed from the STATE BUDGET, BUDGETS of users grouped/goods/services provided: a. the goods are required i.e. domestic production of goods that must be used which fulfill the requirements of necessity and have nothing TKDN the summation and product BMP is greater than or equal to 40% (forty-perseratus) and has nothing much to TKDN goods is greater than or equal to 25% (twenty-five perseratus);
b. goods maximized i.e. domestic production of goods that meet needs and requirements have a summation is nothing TKDN nothing much to BMP and less than 40% (forty-perseratus) and has nothing more TKDN than or equal to 15% (fifteen perseratus); and c.  the goods i.e. goods empowered domestic production that meets the requirements of necessity and have nothing TKDN the goods less than 15% (fifteen perseratus) and less than or equal to 10% (ten perseratus);
Article 6 (1) Government procurement of goods that are not financed from STATE BUDGET/NATIONAL import is prohibited if: a. the goods have been manufactured within the country;
b. domestic production goods has met technical requirements according to needs; and c.  amount/volume of goods production in the country has met the requirement.
(2) in terms of the provisions in paragraph (1) letter b and the letter c is not sufficient, then the only drawback can be imported.
Article 7 (1) procurement of goods are required to be done through auction is limited and can only be followed by domestic manufacturers who produce goods according the technical requirements and specifications as required or distributors designated by the manufacturer in the country with the requirements referred to in article 5 letters a brand holder sole agents or domestic products without price preferences treatment.
(2) procurement of goods implemented through limited auctions is maximized by giving the first opportunity to domestic manufacturers who produce goods according the technical requirements and specifications as required or distributors designated by the manufacturer in the country with the requirements referred to in article 5 of the letter b or brand holder sole agents of domestic products.
(3) procurement of goods implemented through public auction empowered accordingly technical requirements and specifications as required or distributors designated by the manufacturer in the country with the requirements as stipulated in article 5 subparagraph c or brand holder sole agents inviting foreign products.
(4) in the case of procurement of goods is carried out by means of a joint, then the procurement of goods can be followed by domestic producers, or distributors designated by the manufacturer in the country with the requirements referred to in article 5 or the brand holder sole agents product or supplier who has obtained a letter of support from the manufacturer in the country.
Article 8 (1) the goods are required, the goods are maximized, and empowered as stipulated in article 5 it is forbidden to enter in one package of procurement.
(2) in case there are more than 1 (one) type of goods have the same goods group category, procurement of goods can be done within one (1) package.
(3) excluded from the provisions in paragraph (1), and subsection (2), if the process of procurement done in itemize.
(4) the procurement of goods is done with the use of electronic procurement systems and give priority to electronic purchasing system in accordance with the electronic catalogue that was published and developed by the agency that organizes the Affairs of Government in the area of procurement of goods/services.
CHAPTER III the UTILIZATION of the SERVICES of SERVICE COMPANIES is considered Part of DOMESTIC service companies In the country article 9 (1) mandatory Procurement services include service companies In the country.
(2) Domestic service companies as referred to in subsection (1) is a business entity that produces services in accordance with established laws and regulations as well as working and domiciled in the territory of the unitary State of Republic of Indonesia with an ownership stake of more than 50% (fifty perseratus) by the State-owned enterprises, regional and/or Individual citizens of Indonesia, which has the rights to dividends, voting rights and the right to determine the members of the Board of Directors designates the/and/or amend the articles of Association of the company, as well as at least 2/3 (two thirds) of the total number of Directors berwarganegara Indonesia.
Article 10 (1) of domestic service companies as referred to in article 9 paragraph (2) could form a consortium/cooperative operations with other Domestic services company or with the national service companies in the ability of one of the service companies In the country insufficient.
(2) Domestic service company or consortium of service companies In the country with the national service companies as referred to in paragraph (1) may cooperate with foreign firms in the form of a consortium/cooperative operations or held a subcontract some jobs to foreign service companies.
Article 11 (1) of domestic service companies should be a us-led consortium (lead firm) in the Consortium/partnership operations for the construction of on-shore.
(2) Domestic service companies or consortia mandatory Domestic service companies working on at least 50% (fifty perseratus) execution of the work based on the value of the contract in terms of doing a consortium with the national service companies and/or with the foreign service companies.
(3) in the work of construction services off-shore, a mandatory Domestic service companies do the job at least 30% (thirty-perseratus) of the minimum limit as stipulated in paragraph (2) in accordance with the size of the contract value.
(4) the implementation of the physical work of construction services should be carried out in the territory of the Republic of Indonesia at least 50% (fifty perseratus) according to the size of the value of the service.
Article 12 (1) Prospective participants of the procurement services of the register as a service company In the country is obligated to submit an affidavit as a service company In the country with the attach: a. deed issued by a notary or a certificate legalized photocopy by the notary in question;
b. affidavit of truth issued by legal consultant; or c.  affidavit that in the letter of support referred to in letter a and letter b there is no engineering effort or manipulation of the actual condition.
(2) the notary deed or an affidavit of truth of the facts, issued by legal consultants as referred to in paragraph (1) letter a and letter b must contain a statement that: a. shares that have voting rights (voting rights), dividend rights and the right of control management is owned by the individual citizens of Indonesia, Central Government, local governments, STATE-OWNED ENTERPRISES and/or OWNED COMPANIES that cumulatively proportionately more than 50% (fifty perseratus); and/or b.  at least 2/3 (two thirds) of the total number of Board members is Indonesia citizen (WNI), including the Commander-in-Chief of the company and a member of the Board of Directors is responsible for the financial management and business strategy.
(3) If during procurement process found evidence that actual circumstances differ from the contents of the affidavit referred to in subsection (1) and paragraph (2), the status of a service company In the country is not recognized.
(4) If during the validity period of the contract found evidence that actual circumstances differ from the contents of the affidavit referred to in subsection (1) and paragraph (2), participants of the procurement services subject to sanctions.
Article 13 (1) If a participant in a procurement services of the huge effort to register as a service company In the country is not willing to meet the conditions referred to in article 12, the status as a service company In the country is not recognized.
(2) participants of the procurement services of the great effort that is not willing to meet the conditions referred to in subsection (1) is not included in the procurement process.
The second part of the national service companies of article 14 (1) in the event that there are no Domestic services company who participated in the procurement of services as referred to in article 9 paragraph (1), the procurement of services performed include service companies nationwide.

(2) the national service companies as referred to in subsection (1) is a business entity that produces services in accordance with established laws and regulations as well as working and domiciled in the territory of the unitary State of Republic of Indonesia with an ownership stake of more than 50% (fifty perseratus) up to 90% (ninety-perseratus) owned by foreign companies or foreign citizens.
(3) the national service companies can cooperate with Foreign Firms in the form of a consortium or subcontract some work to hold Companies of foreign Services, provided: a. in the case conducted Consortium with Foreign Service companies, service companies Nationwide mandatory carrying out work with a value of at least 50% (fifty perseratus) correspond to the size of the contract value;
b. to work offshore construction services, execution of the work at least 30% (thirty-perseratus) of the limits referred to in paragraph (2) letter a, in accordance with the size of the contract value; and/or c.  the implementation of the physical work of construction service of at least 50% (fifty perseratus) must be carried out in the territory of the Republic of Indonesia in accordance with the size of the value of the service.
The third part of the foreign service company of article 15 (1) in the event that there are no Domestic service companies and/or service companies nationwide are participating in the provision of services referred to in article 9 and article 14, the process continued with the procurement service includes Foreign Service companies.
(2) Foreign Service companies as referred to in subsection (1) is the business entity established and incorporated the law outside the territory of the unitary State of Republic of Indonesia.
CHAPTER IV COMPONENT LEVEL in the COUNTRY and is considered part of the COMPANY'S BENEFITS WEIGHT levels of Domestic component of article 16 (1) TKDN as referred to in article 2 paragraph (2) Letter c covers: a. TKDN on wares;
b. TKDN on composite goods;
c. TKDN on services;
d. TKDN on combined services; and e.  TKDN on combined goods and services.
(2) the combined TKDN Product items for government procurement of goods/services that are not financed from STATE BUDGET/BUDGETS calculated for one activity execution of auctions by suppliers.
(3) close to TKDN each item combined in the calculation of the goods referred to in subsection (2) refers to an inventory list of goods/services domestic production.
Article 17 (1) Product TKDN product TKDN and combined services services for government procurement of goods/services that are not financed from STATE BUDGET/BUDGETS calculated for one activity execution of auctions by the service provider.
(2) Product TKDN services and combined services on each activity can be calculated based on the stages of the work in accordance with the characteristics of her work.
(3) the results of the calculation is nothing TKDN nothing much to merge services and TKDN services as referred to in paragraph (1) be evaluated close to his TKDN at each stage of the work until the work is completed.
Article 18 (1) close to TKDN the combined goods and services for government procurement of goods/services that are not financed from STATE BUDGET/BUDGETS calculated for one activity execution of auctions by the providers of goods/services.
(2) close to TKDN the combined goods and services at each activity can be calculated based on the stages of the work in accordance with the characteristics of her work.
(3) Product TKDN product TKDN calculation of goods in the combined goods and services as referred to in paragraph (1) refers to an inventory list of goods/services domestic production while the product TKDN services based on the results of the calculations themselves.
(4) the results of the tally close to TKDN the combined goods and services as referred to in paragraph (1) be evaluated close to his TKDN at each stage of the work until the work is completed.
The second part Weights Company Benefits article 19 (1) the BMP granted to Producers of goods, providers of services, or the combined Provider of goods and services based on the determinants of the set.
(2) a quantity close to BMP to government procurement of goods/services that are not financed from STATE BUDGET/GRANT refers to an inventory list of goods/services domestic production.
The third part of price Preferences article 20 (1) the provider of the goods/services of the Government that are not financed from STATE BUDGET/BUDGETS which offer goods/services as referred to in article 7 paragraph (1) is given preference in price in accordance with each close to TKDN goods/services without taking into account the value of the BMP.
(2) the preference Price is only given to companies producing goods/services in the country with close to TKDN goods greater than or equal to 25% (twenty-five perseratus) TKDN product service or commitment is greater than or equal to 30% (thirty-perseratus).
(3) given the highest price Preference of 15% (fifteen perseratus) against elements of domestic production goods in the procurement of goods or construction integrated services procurement (EPC services) in accordance with the product TKDN of goods as referred to in paragraph (2).
(4) Preference is given the highest price 7.5% (seven comma five perseratus) against domestic services in integrated construction service procurement (EPC services), other services, consultancy or service in accordance with the product TKDN a service referred to in subsection (2).
(5) For the procurement of construction services are integrated (service EPC), in addition to a price preference given in accordance with the product TKDN as referred to in paragraph (3) and subsection (4), Domestic EPC services company granted additional price preferences based on the status of the company as follows: a. in the amount of 7.5% (seven comma five perseratus) if done entirely by Domestic EPC services company and at least 50% (fifty-perseratus) from the offer price was carried out in the territory of Indonesia.
b. a 5% (five perseratus), when carried out by a consortium of EPC services company with the following conditions: 1) Domestic EPC service company acting as the leader of the Consortium (lead firm);
2) at least 50% (fifty-perseratus) from the bid was done by Domestic EPC Services company; and 3) at least 50% (fifty-perseratus) from the offer price was carried out in the territory of Indonesia.
Chapter V an INVENTORY LIST of goods/services Article 21 (1) the Minister publishes a list of the goods/services inventory of domestic production as a reference over TKDN product items and close the BMP in Government procurement of goods/services that are not financed from STATE BUDGET/BUDGETS.
(2) close to TKDN goods and close BMP as intended in paragraph (1) is the product that has been verified by an independent surveyor and institutions has been marked invalid.
(3) the Committee for the procurement of goods/services can do the clarification of the truth is nothing TKDN listed in an inventory list of goods/services domestic production to the Ministry of industry.
Section 22 (1) the list of goods/services inventory of domestic production as referred to in article 9 paragraph (1) is published on-line on the internet site of the Ministry of industry and updated whenever there are changes and additions to the data.
(2) the list of goods/services inventory of domestic production as referred to in paragraph (1) may also be published in book form and/or optical discs (CD-ROM).
(3) the list of goods/services inventory of domestic production which was published in book form or an optical disc (CD-ROM) as referred to in paragraph (2) updated and evaluated each year.
(4) in the event that there is a difference there is nothing TKDN or close to BMP in an inventory list of goods/services domestic production which is published on-line as referred to in paragraph (1) with an inventory list of goods/services domestic production which was published in book form or CD-ROM as mentioned in subsection (2), apply TKDN or close to close BMP on the list of goods/services inventory of domestic production as referred to in paragraph (1).
Article 23 (1) the list of goods/services inventory of domestic production is submitted or disseminated by the Ministry of industry to the user and the provider of goods/services or related to government procurement of goods/services that are not financed from STATE BUDGET/GRANT or other parties that require.
(2) where necessary, the Committee for the procurement of goods/services can do the clarification of the truth is nothing TKDN listed in an inventory list of goods/services domestic production to the Ministry of industry.
CHAPTER VI VERIFICATION TKDN Article 24 (1) and TKDN is nothing close to the BMP is verified by an independent surveyor appointed by the Minister.
(2) the verification referred to in paragraph (1) is performed based on the conditions and the procedures for calculating TKDN and close to close BMP specified by the Minister.
(3) close to TKDN goods and product verification results of the BMP as referred to in paragraph (2), ditandasahkan by Officials appointed by the Secretary-General of the Ministry of industry.
(4) the results of the verification of the calculation is nothing TKDN and BMP are already getting legitimate sign referred to in subsection (3) shall be listed in an inventory list of goods/services domestic production.
Article 25 (1) in case there are any doubts against the results of the tally close to TKDN referred to in article 17, paragraph (2) of article 18 paragraph (1), and article 19, paragraph (1) may be made re-verification product TKDN at the request of the user.
(2) the verification referred to in paragraph (1) is carried out using data owned by the providers of goods/services, the data is owned by industrial goods/services, or data in an inventory list of goods/services domestic production.
(3) the verification referred to in paragraph (1) in the process of procurement of goods/services can be made at the time of execution of the work or after the execution of the work is completed.

(4) the cost of the verification referred to in paragraph (1) charged to the applicant, unless otherwise stated in the auction.
Article 26 up close TKDN Verification of goods as referred to in article 24 paragraph (1) may be made on products that have been produced or are examples of products that represent the order.

Article 27 (1) of the Ordinance valid marking close to TKDN goods or close the BMP implemented in accordance with the provisions of Annex I of the regulation of the Minister.
(2) Product TKDN product of goods and BMP are valid for 3 (three) years.
(3) in case the verification stuff done nothing against TKDN before expiration as referred to in paragraph (3), applies the new verification results with valid for 3 (three) years.
(4) Manufacturers have earned the mark of legitimate product TKDN can specify a value close to TKDN on its results.
Article 28 the provisions and procedures for calculating TKDN and close to close BMP set with regulation of the Minister.

CHAPTER VII MONITORING, evaluation, and REPORTING of article 29 (1) of the Ministry of industry conduct monitoring against close TKDN as referred to in article 2 paragraph (2) Letter c.
(2) Monitoring as referred to in paragraph (1) are conducted each year.
(3) in terms of product TKDN as stipulated in article 25 paragraph (1) does not comply with the results of the verification, the Ministry of industry can revoke the legitimate product TKDN sign and issue of goods/services Inventory List P3DN.
Article 30 (1) P3DN Team do an evaluation of the use of domestic production over the implementation of government procurement of goods/services that are not financed from STATE BUDGET/a GRANT referred to in article 2 paragraph (2).
(2) the results of the evaluation Team P3DN as referred to in subsection (1) is used to optimize the implementation of P3DN.
Article 31 (1) the use of domestic production in government-procurement of goods/services that are not financed from STATE BUDGET/a GRANT referred to in article 2 paragraph (2) was reported by the leadership of STATE-OWNED ENTERPRISES/LOCAL Non Government Institutions, ministries, Bank Indonesia, Lps, the financial services authority, BLU, Universities, legal entity KKKS, business entity or holder of the IUP Contract Work/Cca, and the head of Government and private cooperation projects to the Minister as Chair of the national P3DN each year at the latest on the second week of January at the following year.
(2) the Minister as Chair of the national P3DN reported the results of the use of domestic production in government-procurement of goods/services to the President each year at the latest on the second week of February next year.
(3) the Format of the Report the leadership of STATE-OWNED ENTERPRISES/LOCAL Non Government Institutions, ministries, Bank Indonesia, Lps, the financial services authority, BLU, Universities, legal entity KKKS, business entity or holder of the IUP Contract Work/Cca, and the head of Government and private partnership projects, as referred to in paragraph (1) are listed in annex II to this regulation of the Minister.
CHAPTER VIII SANCTIONS Article 32 users and Organizers of procurement that deviate from the provisions in the regulations of the Minister can be penalized in accordance with administrative regulations.

Article 33 (1) the provider of the goods/services may be subject to a sanction if: a. create and/or deliver documents and/or other information related to the incorrect product TKDN; and/or b.  based on the results of the checks found the existence of a discrepancy in the use of the goods/services of domestic production.
(2) the sanctions referred to in paragraph (1) be: a. administrative sanctions; and b.  the financial sanctions.
(3) administrative Sanctions referred to in paragraph (2) letter a in the form of: a. a written warning;
b. temporary closure;
c. the inclusion in the blacklist;
d. the freezing of business license; and/or e.  business license revocation.
(4) any act or action referred to in subsection (1), subject to a sanction referred to in subsection (2).
(5) the sanctions referred to in paragraph (2) letter a is done by Committee of procurement in accordance with the provisions of the legislation.
(6) the financial sanctions as referred to in paragraph (2) letter b is done by the user.
(7) the financial Sanctions as referred to in paragraph (2) letter b in the form of payment is equal to the difference between the reduction product TKDN deals with the implementation of TKDN highest close to 15% (fifteen perseratus).
CHAPTER IX miscellaneous PROVISIONS Article 34 implementation of the procurement of goods/services domestic production conducted by contractors and sub contractors EPC services/service EPCI contractors or sub KKKS for the work came from the Government's procurement of goods/services that are not financed from STATE BUDGET/NATIONAL mandatory rules refers to the Minister.

Article 35 the leadership of STATE-OWNED ENTERPRISES, LOCAL GOVERNMENT, Non Governmental ministries, BLU, Universities, legal entity KKKS, business entity business license holder of mining (IUP) or contract Work/Work Entrepreneurs coal mining Agreement (Cca), as well as procurement in the framework of cooperation of Government and private as stipulated in article 2 paragraph (2), in the procurement of goods/services in the respective environment can require nothing much tighter TKDN , as long as not contrary to the provisions of this regulation of the Minister.

Article 36 the provisions regarding the use of domestic products to a particular product or a particular field regulated with regulation of the Minister or other technical along the ministerial regulation does not conflict with the regulations of the Minister.

CHAPTER X the CLOSING PROVISIONS Article 37 of this Ministerial Regulation comes into force on the date of promulgation.

In order to make everyone aware of it, ordered the enactment of this Ministerial Regulation with its placement in the news of the Republic of Indonesia.

Established in Jakarta on January 8, 2006 MINISTER of INDUSTRY of the REPUBLIC of INDONESIA, MOHAMAD s. HIDAYAT of the promulgation in Jakarta on January 13, 2006 MINISTER OF JUSTICE and HUMAN RIGHTS of REPUBLIC of INDONESIA, AMIR SYAMSUDDIN fnFooter ();