Regulatory Region Number 1 2013 2013

Original Language Title: Peraturan Daerah Nomor 1 TAHUN 2013 Tahun 2013

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1 BUPATI BADUNG DRAFT LOCAL REGULATIONS BADUNG REGENCY number 1 2013 ABOUT supervision, SALES and DISTRIBUTION, as well as LICENSING of ALCOHOLIC BEVERAGES by the GRACE of GOD ALMIGHTY the REGENT of BADUNG, Considering: a. that controls trading, sales and consumption of alcoholic beverages is very important in order to maintain peace and order of the life of the community; b. that, in order to keep the rights protected peace and order of society, then the need for the construction, setting, surveillance activities in the sale and distribution of alcoholic beverages and the granting of the permit; c. that the applicable local Badung Regency number 6 in 2009 about the Levy Passes Business Trade of alcoholic beverages was incompatible with the provisions of the applicable legislation; d. that based on considerations as referred to in letter a, letter b, letter c, and the need to establish local regulations regarding surveillance, Distribution and sales, as well as Licensing of alcoholic beverages; Remember: 1. Article 18 paragraph (6) of the Constitution of the Republic of Indonesia in 1945; 2. A law of disorder (Hinder Ordonantie, 1926: Staatblad Number 226 as amended by Staatblad 1940: No. 14 and no. 450); 3. Act No. 69 of 1958 on the establishment of areas of level II within level I areas of Bali, West Nusa Tenggara and East Nusa Tenggara (Indonesia Country Sheet Republic of 1958 Number 122, an additional Sheet of the Republic of Indonesia Number 1655); 4. Law number 8 of 1962 concerning Trade in goods Supervision (Gazette of the Republic of Indonesia Number 42 in 1962, an additional Sheet of the Republic of Indonesia Number 2469); 5. Act No. 11 of 1995 about customs (Gazette of the Republic of Indonesia Number 76 in 1995, an additional Sheet of the Republic of Indonesia Number 3613);

2 6. Law Number 32 of 2004 concerning Regional Government (State Gazette of the Republic of Indonesia Number 125 of 2004, an additional Sheet of the Republic of Indonesia Number 4437), as amended several times with the Act No. 12 of 2008 about the second amendment in the Law Number 32 of 2004 concerning Regional Government (State Gazette of the Republic of Indonesia Number 59 in 2008, an additional Sheet of the Republic of Indonesia Number 4844); 7. Act No. 10 of 2009 about Tourism (State Gazette of the Republic of Indonesia number 11 in 2009, an additional Sheet of the Republic of Indonesia Number 5141); 8. Act No. 36 of 2009 about health (State Gazette of the Republic of Indonesia Number 144 in 2009, an additional Sheet of the Republic of Indonesia Number 5063); 9. Act No. 12 year 2011 about the formation of Legislation (State Gazette of the Republic of Indonesia Number 82 in 2011, an additional Sheet of the Republic of Indonesia Number 5234); 10. Presidential Decree No. 3 of 1997 concerning monitoring and control of alcoholic beverages; 11. Minister of Trade Regulation number 43/M-DAG/PER/9/2009 on procurement, Distribution, sales, supervision and control of alcoholic beverages as amended by regulation of the Minister of Commerce Number 53/M-DAG/PER/12/2010 about the changes to the regulation of the Minister of Commerce number 43/M-DAG/PER/9/2009 on procurement, Distribution, sales, supervision and control of alcoholic beverages; 12. Applicable local Badung Regencies District number 4 in 1988 about Investigator civil servant at the local government level II Badung; 13. Applicable local Badung Regency number 4 in 2008 about Government Affairs who became the authority of Badung Regency; With the approval of the REGIONAL HOUSE of REPRESENTATIVES Shared BADUNG REGENCY and REGENT of BADUNG DECIDED: setting: LOCAL REGULATIONS REGARDING surveillance, DISTRIBUTION and SALES, as well as LICENSING of ALCOHOLIC BEVERAGES. .

3. CHAPTER I GENERAL PROVISIONS article 1 In this Area Regulations is: 1. The area is the Badung Regency. 2. Local Government is the Regent and the Region as organizer of local governance. 3. The Regent was Regent of Badung. 4. Department of cooperatives, SMEs, industry and trade hereinafter referred to as Dinas is the Department of cooperatives, SMEs, industry and trade of the Badung Regency. 5. the head of Department is the Head Office of cooperatives, SMEs, industry and trade of the Badung Regency. 6. the designated Official is the head of Department. 7. An alcoholic beverage is a drink containing Ethanol processed from agricultural materials that contain carbohydrates by fermentation and distillation or fermentation without distillation, either by giving preferential treatment in advance or do not add other ingredients, as well as processed by way of mixing the concentrate with ethanol or by dilution of beverages containing ethanol derived from fermentation. 8. Hotel is one of the types of accommodations that uses part or all of the buildings to provide services of lodging, food and drink as well as services to the public, which is managed commercially, as well as comply with the requirements set out in the regulation of this area. 9. restaurant Venture is one type of food service businesses based in part or all of a permanent building, equipped with equipment and supplies to the process of making, storing, serving and selling food and drink to the public. 10. Bar including pubs and nightclubs are as set out in the applicable legislation in the field of tourism. 11. the company is a company that does business in the field of activity of alcoholic beverages which may take the form of individual, Association, or legal entities domiciled in the territory of the Badung Regency. 12. Retailers of alcoholic beverages is a company that performs sales of alcoholic beverages to the final consumer in the form of packs available. 13. Direct seller of alcoholic beverages is a company that performs sales of alcoholic beverages to the final consumer to be drunk directly available. 14. the direct seller and/or the retailers of alcoholic beverages for the purpose of health is a company that performs sales of drinks berlakohol containing spices, herbs and the like with alcohol levels extended to 15% (fifteen perseratus) to the end consumer to drink directly on the site and/or in the form of packs available.


4 15. Trading business licence hereinafter abbreviated SIUP permission letter is to be able to carry out the business activities of trade issued by the cooperatives, SMEs, industry and trade. 16. Business Permit alcoholic drinks Trade hereinafter abbreviated SIUP – MB was license to be able to carry out the business activities of special trade of alcoholic beverages in Group B and/or C Class issued by the Department of cooperatives, SMEs, industry and trade. 17. Business License application letter Trade of alcoholic beverages which further abbreviated SP SIUP – MB was the permission request form must be filled out by the company, which contains the data/information of the company in question to acquire SIUP – MB. 18. the governing body is a form of business entity that includes a limited liability company, the company komanditer, the company's other State-owned enterprises or areas by name and in any form, Assembly, Association, firm, sharing, cooperative, foundations or similar organizations, institutions, pension funds, a business form remains as well as other forms of business entities. CHAPTER II CLASSIFICATION of the ALCOHOLIC BEVERAGES Section 2 alcoholic beverages are grouped in classes as follows: a. A is the alcoholic beverage alcoholic drinks with ethanol levels (C2H50H) above 0% (zero perseratus) up to 5% (five perseratus); b. B is the alcoholic beverage alcoholic drinks with ethanol levels (C2H50H) more than 5% (five perseratus) up to 20% (twenty perseratus); c. class C liquor is an alcoholic beverage with an ethanol levels (C2H50H) more than 20% (twenty perseratus) up to 55% (fifty-five perseratus). CHAPTER III is considered part of the LICENSING Authority of article 3 the local government authorities manage and set the: a. provisions on coaching, supervision, monitoring and evaluation of the distribution and sale of alcoholic beverages in Group A, Group B and Group C and/or alcoholic beverages containing spices – spice, herbs, or the like for the purpose of health as well as the granting of SIUP – MB in accordance with the provisions of the laws – the invitation;

5 b. alcoholic beverages that can be sold/traded is alcoholic drinks Group A, Group B and Group C as well as alcoholic beverages containing spices – spice, herbs, or the like for the purpose of health. Article 4 (1) the Regent publishing SIUP – MB for: a. direct seller of alcoholic beverages in Group B and/or C class; b. a retailer of alcoholic beverages in Group B and/or C the other place besides the duty-free shop (Duty Free Shop); and c. direct sellers or retailers of alcoholic beverages for the purpose of health. (2) the Regent can bestow authority signing SIUP – MB to the head of Department. The second part PROVIDED, article 5 MB – companies that perform business activities trading group with enough alcoholic beverages have PROVIDED, and are not required to have PROVIDED – MB. Article 6 (1) every company that does business activity trade of alcoholic beverages in Group B and/or C class required to have PROVIDED – MB. (2) SIUP-MB was published based on the seat (domicile) of the concerned companies in the area and is valid in the territory of the region. (3) SIUP-MB as referred to in subsection (1) is valid for 3 (three) years and can be extended selambat – the latest three (3) months before it expired. (4) companies that perform business activities of alcoholic beverages that are experiencing changes in the data PROVIDED, SUCH mandatory replace SIUP – MB. The third part of the Ordinance and the terms of the petition PROVIDED – MB article 7 (1) Petition SIUP – MB as referred to in article 6 paragraph (1) proposed to the Regent. Head Of Department. (2) further Provisions regarding the procedures and requirements of the solicitation SIUP – MB arranged with Rules of Regent.

6 CHAPTER IV CIRCULATION and SALE of article 8 (1) the production of alcoholic beverages imports that could be released is an alcoholic beverage that has been packaged, excise, and banded have labeled path. (2) alcoholic beverages of domestic production that could be released is an alcoholic beverage that has been packaged and labeled path. Article 9 (1) a retailer of alcoholic beverages in Group B and/or C groups are only allowed to sell alcoholic beverages in retail in the Pack. (2) the retailer as referred to in paragraph (1) may only sell alcoholic beverages in Group B and/or C class is a retail seller of packaged alcoholic beverages Group B and/or C with respect to the other in addition to the duty-free shop (Duty Free Shop) are defined by the Regent in accordance with the requirements set out in the applicable legislation. Article 10 (1) the seller of alcoholic beverages in Group B and/or C sold by the direct seller only in certain places to drink straight. (2) the seller of a particular place referred to in subsection (1), namely: a. 3-star hotel, 4.5; b. the restaurant with the sign of Talam Kencana and Talam Selaka; and c. bar including pubs and nightclubs. (3) For certain areas that have no specific place referred to in subsection (2), Regent after considering the activities of the diwilayahnya foreign tourists, may set a certain other place for Direct Sellers to sell alcoholic beverages in Group B and/or C which is located in the county seat or other locations with bound by the regulations of the Minister. (4) the Governors can set other places direct sales to drink available and retailer of alcoholic beverages in the packaging group B contains spices – spice, herbs and the like for the purpose of health alkoholnya setinggi–tingginya levels of 15% (fifteen perseratus). Chapter V the PROHIBITION of article 11 (1) the sale of alcoholic beverages in Group B and/or C class sold in certain places as stipulated in article 10 paragraph (2) letter a, can be drunk in the hotel room with the provisions as per the packaging contains at most 187 ml (one hundred and eighty-seven milliliters).


(2) alcoholic beverages referred to in paragraph (1) it is prohibited to drink in hotel rooms exceed the provision perkemasan contains 187 ml (one hundred and eighty-seven milliliters). (3) the direct seller of alcoholic beverages and retailers of alcoholic beverages, it is prohibited to sell alcoholic beverages class A, class B, and class C except to citizens of Indonesia that has been aged 21 (twenty one) years as evidenced by Sign Card of residents and foreign nationals. Article 12 any person prohibited from selling in retail in the packaging of alcoholic beverages in Group B and/or C class and/or sell directly to drink available at the following locations: a. rink teenagers, five feet, terminals, stations, kiosks – a small kiosk, this teen, and campsites; b. place adjacent to the places of worship, schools, hospitals, and residential; c. certain other places established by the Regents to pay attention to the conditions of each area. Article 13 – SIUP MB banned transferable to another party. CHAPTER VI SUPERVISORY Control is considered Part of article 14 Governors carry out controls in order to surveillance conducted against: a. direct seller to drink alcoholic beverages, retailer of alcoholic beverages in Group B and Group C as well as the seller and/or the retailers of alcoholic beverages for the purpose of health; b. licensing, quality standards, implementation of the distribution and sale of alcoholic beverages; c. place/location of the distribution and sale of alcoholic beverages. The second part Reporting Article 15 (1) the direct seller to drink alcoholic beverages in Group B and Group C as referred to in article 10 paragraph (1) and paragraph (2), as well as retailer of alcoholic beverages in Group B and Group C as referred to in article 9 paragraph (1) mandatory report realization of the procurement and sale of alcoholic beverages in Group B and Group C to the Regent. Head of Department with copy to the Governor of Bali. Head of Department-related province of Bali.

8 (2) the direct seller to drink and/or pengeceran of alcoholic beverages for the purpose of health referred to in article 10 paragraph (4), mandatory reporting on the realization of the procurement and sale of alcoholic beverages for the purpose of health to the Regent. Head of Department with copy to the Governor of Bali. Head of Department-related province of Bali. (3) the submission of the report referred to in subsection (1) and paragraph (2) is conducted each quarter of the calendar year runs as follows: a. Quarterly I: 1 January to 31 March; b. Quarterly II: 1 April to 30 June; c. Quarterly III: 1 July to 30 September; d. Quarterly IV: 1 October to 31 December. Article 16 liability other than as stipulated in article 15, the company is obliged to provide information about its business activities in a while – time required by the Regent or officer designated on behalf of Regent. CHAPTER VII the ADMINISTRATIVE SANCTIONS in the framework of article 17 of the construction and supervision of the circulation and sale of alcoholic beverages in the region, the Regent or the designated officer may charge administrative sanction in the form of: a. a written warning; b. suspension SIUP – MB; and c. the lifting of SIUP – MB. Article 18 (1) the company in violation of the provisions referred to in Article 15 and article 16 administrative penalties in the form of a written warning from the Regent or officer designated on behalf of Regent. (2) a written Warning as referred to in subsection (1) is given at most three (3) consecutive – hardness, with a grace period of 1 (one) month. (3) companies that don't heed the provisions as referred to in paragraph (1) and paragraph (2) of administrative penalties in the form of suspension SIUP – MB. (4) if the company does not heed the provisions as referred to in paragraph (3), within a period of thirty (30) days from the date of dismissal while SIUP – MB, administrative penalties in the form of repeal SIUP – MB.

9 Article 19 (1) the company in violation of the provisions referred to in article 6 paragraph (4) administrative penalties in the form of suspension SIUP – MB by first administrative sanctions in the form of a written warning at most three (3) consecutive – hardness, with a grace period of 1 (one) month. (2) for the business activities of trade of alcoholic beverages is dismissed while referred to in subsection (1), the corresponding prohibited conduct company business activities of circulation/sale of alcoholic beverages. (3) PROVIDED – which have been dismissed while the MB could be enforced again if the company concerned had heeded a warning by doing repairs and carry out its obligations in accordance with the provisions in the regulations in this Area. Article 20 (1) a company that had been stripped of SIUP – MBnya referred to in Article 18 paragraph (4) may file an objection to the Governors or officials designated most longer than 30 (thirty) business days counted from the date of receipt of the revocation letter. (2) the Governors or officials designated the longest 15 (fifteen) working days as of receipt of the petition since the mind can accept or reject the petition mentioned in writing accompanied by reasons. (3) if the petition objections received, the SIUP – MB has been revoked are published again. (4) if the period referred to in subsection (2) has been exceeded and the Regent did not give a decision, an objection petition is deemed granted and PROVIDED – which has been revoked MB re-issued. (5) a company that had been stripped of SIUP – MBnya can apply SIUP – MB after 1 (one) year counted from the date of revocation. CHAPTER VIII PROVISIONS of the PROBE clause 21 (1) in addition to the investigating officials of the State police of the Republic of Indonesia menyidik in charge of a criminal offence, the investigation over the criminal acts referred to in the regulation of this area can also be performed by Investigators civil servant in a Government environment Badung Regency. (2) the authority of investigators for infringement of the rules in this Area are: a. receives a report or a complaint from a person regarding the existence of a criminal action for infringement of the rules Area; b. do the first action and the examination of the place of occurrence;


10 c. perform the seizure of objects or letters; d. taking fingerprints and a photograph of a person; e. calling the people to be heard and examined as a suspect or a witness; f. bring the necessary expert people in connection with the proceeding; g. hold the cessation of investigation after investigators got a clue that there was not sufficient evidence or such events does not constitute a criminal offence and subsequently through the investigator notify the matter to the public prosecutor, the suspect or his family; h. held another action according to the law which can be accountable. (3) the investigator as referred to in paragraph (1) notify the commencement of investigation and convey the results of penyidikannya to the public prosecutor's Office Police Officials through the Republic of Indonesia in accordance with the provisions set forth in the law of criminal procedure in force. CHAPTER IX of the CRIMINAL PROVISIONS of section 22 (1) every person who contravenes the provisions – provisions, article 6 paragraph (1) and paragraph (4), article 11 paragraph (2) and paragraph (3), article 12, article 13, article 15 paragraph (1) and paragraph (2), and article 16 is liable to a criminal confinement of not longer than 6 (six) months or a maximum fine of Rp. 50,000,000.00 (fifty million rupiah). (2) a criminal offence referred to in subsection (1) is an offence. CHAPTER X PROVISIONS of the TRANSITION Article 23 (1) the company that has possess SIUP – MB before the establishment of this Area, Regulations remain valid until the validity period is over. (2) the Company applying for the B MB – SIUP and/or class C which are in the process of completion before the establishment of this area of Regulation, mandatory filing a new petition to the Regent Back Up. Head of Department to obtain appropriate provisions – SIUP MB Rules this area.

11. CHAPTER XI CLOSING PROVISIONS Article 24 of the regulation at the time of this area comes into force, the regulation region of Badung Regency number 6 in 2009 about the Levy Passes Business Trade of alcoholic beverages (the regional Gazette Badung Regency in 2009 number 6, an additional area of Badung Regency Sheet number 6) was revoked and declared inapplicable. Article 25 of the regulation of this area comes into force on the date of promulgation. In order to make everyone aware of it, ordered the enactment of regulations in this Area with its placement in the piece area of Badung Regency. Defined in: Denpasar on March 21, 2013 REGENT of BADUNG, ttd. ANAK AGUNG GDE AGUNG Enacted in: Denpasar on March 21, 2013 SECRETARY BADUNG REGENCY, ttd. KOMPYANG r. SWANDIKA SHEET AREA BADUNG REGENCY 2013 number 1.

12 EXPLANATION of APPLICABLE LOCAL BADUNG REGENCY number 1 2013 REGARDING surveillance, DISTRIBUTION and SALES, as well as LICENSING of ALCOHOLIC BEVERAGES. I. PUBLIC based on government regulation Number 38 in 2007 about Government Affairs Divisions between the Government, local governance and local governance of the province, Kabupaten/Kota, stating that local governance authorities do coaching, supervision, monitoring, and evaluation of sales and circulation of alcoholic drinks Group B and Group C as well as alcoholic beverages containing spices – spice, herbs, or the like for the purpose of health and grant of SIUP – MB in accordance with the provisions of the laws – the applicable invitation. The availability of alcoholic beverages in the province of Bali especially in Badung Regency required as supporting the fulfillment of the needs of the tourism and the instruments in the activities of customs. In order to make the sale and circulation of alcoholic beverages can be true – rightly directed to support the activities referred to in the region as small as possible in order to avoid and is consumed by the general public for free, then the circulation and sale of alcoholic beverages need to be controlled by forming local regulations. II. For the SAKE of ARTICLE ARTICLE article 1 is pretty clear. Article 2 is quite clear. Article 3 is quite clear. Article 4 is quite clear. Article 5 is quite clear. Article 6 is quite clear. Article 7 is quite clear. Article 8 is quite clear.

13 article 9 is quite clear. Article 10. Subsection (1) is quite clear. Paragraph (2) letter a is quite clear. The letter b is a "sign of Talam Kencana" is a kind of food service businesses housed in permanent buildings or entire disebagian sells and serves food and drink to the public with respect to its business well equipped with equipment/equipment for processing. What is meant by "mark Talam Selaka" is a kind of food service businesses housed in permanent buildings or entire disebagian sells and serves food and drink to the public with respect to its business, both equipped with equipment/equipment for the process of making and storing or not and has received the Decree as a restaurant/diner talam selaka from institutions that built it in KBLI (classification of Raw Field Business Indonesia) in 2000. The letter c is quite clear. Paragraph (3) is quite clear. Subsection (4) is quite clear. Article 11 is quite clear. Article 12 is quite clear. Chapter 13 is quite clear. Article 14 is quite clear. Article 15 is quite clear. Article 16 is quite clear. Article 17 is clear enough. Article 18 is quite clear.

14 article 19 is quite clear. Article 20. Is quite clear. Clause 21 is quite clear. Section 22 is quite clear. Article 23 is quite clear. Article 24 is quite clear. Article 25 is quite clear. ADDITIONAL SHEET number 1 BADUNG REGENCY AREA.