COUNTRY NEWS

REPUBLIC OF
INDONESIA
No.593, 2013 MINISTRY OF FINANCE. Fare. Group/Tier. Excise
Tobacco. Connectivity. Assignment.

REGULATION OF THE MINISTER OF FINANCE OF THE

REPUBLIC OF INDONESIA NUMBER
78/PMK.011/2013
ABOUT
DETERMINATION OF TOBACCO PRODUCT EXCISE CLASSES
AND TARIFFS FOR TOBACCO PRODUCT FACTORY
ENTREPRENEURS
WHICH HAS A RELATED CONNECTIVITY

BY THE GRACE OF GOD ALMIGHTY

MINISTER OF FINANCE OF THE REPUBLIC OF
INDONESIA,

Considering: a. that the provisions regarding the special Connectivity between

tobacco product factory entrepreneurs and other tobacco
product factory entrepreneurs have been regulated in the
Minister of Finance Regulation Number 191 / PMK.04 /
2010 concerning Amendments to the Minister of Finance
Regulation Number 200 / PMK.04 / 2008 concerning
Procedures for Granting, Freezing, and Revoking the
Entrepreneur Identification Number excisable goods for
manufacturers and importers of tobacco products;
b. that in order to create a conducive tobacco products industry
business climate and secure state revenue from efforts to
avoid excise tariffs, it is necessary to reorganize the
provisions regarding special relations between tobacco
product factories and determine the classification and

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excise tariffs of tobacco products on factories that have
connectivitys with factories Other;

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2013, No.593 2

c. that based on the considerations referred to in letter a and

letter b, and in order to implement the provisions of Article
5 paragraph (5) of Law Number 11 of 1995 concerning
Excise as amended by Law Number 39 of 2007, it is
necessary to establish a Regulation of the Minister of
Finance concerning the Determination of Group/Tier and
Tobacco excise tax tariffs on tobacco product factory
entrepreneurs who have a related connectivity;

Recall: 1. Law Number 11 of 1995 concerning Excise

(State Gazette of the Republic of Indonesia in 1995
Number 76, Supplement to the State Gazette of the Republic
of Indonesia Number 3613) as amended by Law Number
39 of 2007 (State Gazette of the Republic of Indonesia of
2007
No. 105, Supplement to the Official Gazette of the Republic
Indonesia No. 4755);

2. Presidential Regulation Number 24 of 2010 concerning the

Position, Duties, and Functions of State Ministries and the
Organizational Structure, Duties, and Functions of
Echelon I of State Ministries;

DECIDE:

Stipulate: REGULATION OF THE MINISTER OF FINANCE CONCERNING THE

DETERMINATION OF TOBACCO PRODUCT EXCISE
CLASSES AND TARIFFS ON TOBACCO PRODUCT FACTORY
ENTREPRENEURS WHO HAVE A RELATED CONNECTIVITY
.

CHAPTER I
GENERAL
PROVISIONS Article
1

In this Ministerial Regulation, what is meant by :

1. Person is a natural person or legal entity.
2. Tobacco Products Factory Entrepreneurs, hereinafter referred to as Entrepreneurs
3. A factory is a person who runs a tobacco products factory .
4. Connectivity is a business connection between factory tobacco results
from the aspect of capital, key management, Use raw materials in the
form of sliced tobacco (TIS), and/or relationships family.
5. 4. Director means the Director of Excise of the Directotariff General of Customs
and Excise.

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6. Customs and Excise officials are employees of the Directotariff General

of Customs and Excise taxes appointed in certain positions for
Implement certain duties under the Act Excise.
7. Regional Office means the Regional Office of the Directotariff General of
Customs and Excise

8. The next office of the Directotariff General of Customs and Excise called
Office means the Main Service Office of Customs and Excise or Office
Supervision and Customs Services in the environment Directotariff
General Customs and Excise.
9. Factory Production is the production of each type result tobacco
calculated based on tape ordering documents excise.

10. Factory Production Quantity Limitation is the production limitation of

each- Each type of tobacco yield calculated based on document Customs
tape order, within one calendar year prior year budget walk.

CHAPT
ER II
CONNECTIVITY BETWEEN
FACTORY ENTREPRENEURS
Article
2
(1) Factory entrepreneurs who are related from the aspects of :
a. Capital;
b. key management ;
c. Use of raw materials for excisable goods in the form of tobacco slice
obtained from other Factory Entrepreneurs who have capital
participation of at least 10% (ten percent); and/or
d. Family relationships both inbred and deep line straight and/or
sideways descent 2 (two) degree.
is considered an entrepreneur who has a Connectivity.
(2) Factory Entrepreneurs are considered to have a Connectivity from the
aspect of capital, in the case of:
a. Factory entrepreneurs have direct capital participation or not direct
at least 20% (twenty percent) on other factories;
b. Factory entrepreneurs have direct capital participation most slightly
20% (twenty percent) in 2 (two) factories or more on each factory;

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2013, No.593 4

c. There are 2 (two) or more factories with the least capital

20% (twenty percent) of each plant is owned by the same party ;
d. Factory entrepreneurs have capital participation in factories Other at
least 10% (ten percent) and is holder The largest stake in the factory
aforementioned;
e. Factory entrepreneurs have capital participation in factories Other at
least 10% (ten percent) and is Lender the largest in the plant; or
f. Factory Entrepreneurs who guarantee against
Other Factory Entrepreneurs in the framework of capital lending .
(3) Factory Entrepreneurs are considered to have connectivity’s from key
management aspects, in terms of:
a. commissioner or director of a tobacco products factory become
commissioners or directors of other tobacco products factories deep
the time Same time;
b. Factory Entrepreneurs based on the articles of association or
Certain agreements are able to control a majority vote deep Meeting
of the Board of Tobacco Products Factory Entrepreneurs Other;
c. Factory entrepreneurs become commissioners or directors on factory
other tobacco products at the same time; or
d. There are certain employees of a produce factory tobacco based on a
contract or agreement that have authority to regulate and define
policies Financial and operation of other tobacco products factories
in time at the same time.
(4) Factory Entrepreneurs are considered to have a Connectivity from the aspect
of raw materials, namely the use of excisable raw materials in the form of
sliced tobacco obtained from other Factory Entrepreneurs who have capital
participation of at least 10% (ten percent).
(5) Factory Entrepreneurs are considered to have a Connectivity from the aspect
of family relationships, namely Factory Entrepreneurs who have family
relationships both inbred and semenda in straight and/or sideways
lineages of 2 (two) degrees with other Factory Entrepreneurs.
(6) In the event that the Factory Entrepreneur as referred to in paragraph (5)
is a legal entity, then what is considered by the Factory Entrepreneur is
a shareholder of at least 20% (twenty percent), commissioners, directors,
and/or certain employees who based on contracts or agreements have the
authority to regulate and determine financial and operational policies at
the factory .

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CHAPTER
III
PROCEDURES FOR DETERMINING AND REVOKING THE
DETERMINATION OF FACTORY ENTREPRENEURS WHO HAVE A
CONNECTIVITY WITH OTHER FACTORY ENTREPRENEURS
Article
3
Factory Entrepreneurs are determined to have a Connectivity, in terms of:
a. The Factory Entrepreneur in question declares himself have Connectivity
with other Factory Entrepreneurs Accompanied supporting evidence; or
b. research results by top Customs and Excise Officials indication prove
the existence of an Entrepreneur Connectivity Factory.
Article
4
(1) The statement has a Connectivity as referred to in Article 3 point a,
submitted to:
a. Head of Regional Office if the factory is under the Office
The same territory ;
b. Director if the factory is under the Regional Office different.
(2) Upon the statement of the Factory Entrepreneur as referred to in paragraph
(1), the Head of the Regional Office or Director shall submit a Decree on
the Determination of the Connectivity between Factory Entrepreneurs
and other Factory Entrepreneurs using the example format as stipulated
in Annex IV which is an integral part of this Ministerial Regulation.
Article
5
(1) Proof as referred to in Article 3 point b shall be carried out on Factory
Entrepreneurs who have indications of Connectivity with other Factory
Entrepreneurs .
(2) To obtain an indication as referred to in paragraph (1), the Head of Office
conducts research on the activities of Factory Entrepreneurs within his
supervisory area.
(3) Research as referred to in paragraph (2) must be accompanied by evidence,
namely:
a. Excise Documents or supplementary documents of excise;
b. report on the results of the investigation;
c. Audit Report; or
d. evidence of other findings, in the form of notes, books, letters,
and document other.

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2013, No.593 6

(4) In the event that the results of the research are found to indicate that the
Factory Entrepreneur has a connectivity with other Factory
Entrepreneurs, the Head of Office shall notify to:
a. Head of Regional Office if the factory is under the Office
The same territory; or
b. Director if the factory is under the Regional Office different.
Article
6
(1) Based on the notification as referred to in Article 5 subsection (4), the
Head of the Regional Office or Director undertakes research more next.
(2) Research as referred to in paragraph (1), may Done through Audit.
(3) In terms of based on the results of further research, the Head Office The
Region or Director obtains provisional conclusions that Factory
Entrepreneurs have a Connectivity, then result the research was
presented to the Factory Entrepreneur that concerned with using sample
formats As listed in Appendix I which is part of not is separable from this
Ministerial Regulation to get a response.
(4) Response to provisional conclusions as referred to at paragraph (3)
submitted by the Factory Entrepreneur within the term time no later
than 7 (seven) working days from receipt Notification letter.
(5) In the event that the Factory Entrepreneur does not submit a response
deep period as referred to in paragraph (4), Entrepreneur Factory
Considered receive.
(6) In the event that the Factory Entrepreneur rejects the conclusion while
as referred to in paragraph (3), Head of Regional Office or The Director
conducts final discussions with the Entrepreneur Factory that
Concerned.
(7) The results of the final discussion are set forth in the minutes of
discussion end and made minutes of the final discussion, using example
format as set out in Appendix II and Appendix III which is an integral part
of the Ministerial Regulation .ini.
(8) Factory entrepreneurs are considered to accept conclusions while as
referred to in paragraph (3) in thing:

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 7 2013, No.593

a. Factory Entrepreneurs or their proxies did not attend final

discussion;
b. Factory entrepreneurs or their proxies attend discussions end but
did not carry out the final discussion; or
c. Factory entrepreneurs or their proxies attend discussions end but
did not sign the minutes of discussion end.
(9) The Head of the Regional Office or Director shall submit a Decree
Establishment of Connectivity, in terms of:
a. Factory entrepreneurs accept the results of the conclusion while
as referred to in paragraph (3);
b. The Factory Entrepreneur did not provide a response in compass
time as referred to in paragraph (4);
c. Factory Entrepreneurs accept the results of the discussion end as
referred to in paragraph (7); or
d. Factory entrepreneurs are considered to receive results conclusion
while as referred to in paragraph (8).
(10) The Decree on the Determination of Connectivity Relations as referred to
in paragraph (9) shall be submitted to each Factory Entrepreneur and
the Head of the relevant Office using the sample format as stipulated in
Annex IV which is an integral part of this Ministerial Regulation.
(11) In the event that based on the results of the final discussion it is not
proven that the Factory Entrepreneur has a Connectivity, the Head of
the Regional Office or Director shall submit the results of the final
discussion to the Head of Office who finds an indication of the Connectivity
and each Factory Entrepreneur.
Article
7
(1) Factory Entrepreneurs may apply for the revocation of the determination
of Connectivity with other Factory Entrepreneurs to the Head of the
Regional Office or Director through the Head of Office , accompanied by:
a. Statements by using sample formatting As set out in Annex VI which
is part of not separable from this Ministerial Regulation; and
b. supporting evidence .
(2) At the request of the Factory Entrepreneur as referred to in paragraph (1),
the Head of the Regional Office or Director conducts further research .

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(3) In the event that the results of further research prove that the Factory
Entrepreneur still has a Connectivity, the Head of the Regional Office
or Director submits a rejection letter to the Factory Entrepreneur
concerned.
(4) In the event that the results of further research prove that the Factory
Entrepreneur no longer has a Connectivity, the Head of the Regional
Office or Director shall submit a Decree Revoking the Determination of
the Connectivity of Tobacco Product Factory Entrepreneurs using the
sample format as stipulated in Annex V which is an integral part of This
Ministerial Regulation .
CHAPTER
IV
CLASSIFICATION AND EXCISE TARIFFS OF FACTORY
ENTREPRENEURS WHO HAVE A RELATED CONNECTIVITY
Article
8

(1) Factory entrepreneurs are group/Tiered into business group/Tiers based

on each type and amount of tobacco product production, in accordance
with the Limit on the Number of Tobacco Products Factory Production as
stipulated in the Minister of Finance Regulation on tobacco product excise
tariffs.
(2) The classification of Factory Entrepreneurs who have Connectivity shall be
calculated for each type and amount of Production of tobacco products
factories based on a combination of excise tape ordering documents for all
factories that have Connectivity in all factory locations.
(3) In the event that the amount of Factory Production as referred to in
paragraph (2) has exceeded the Limit on the Number of Tobacco Products
Factory Production in the current fiscal year, the Head of Office shall
make adjustments to the increase in the class of Factory Entrepreneurs
as stipulated in the Minister of Finance Regulation regarding excise tariffs
on tobacco products.
Article
9
(1) In the event that the Factory Entrepreneur has a Connectivity, to be
classified in determining the excise tariff per stick or gram for each type
of tobacco product determined based on the type, amount of production,
and:
a. retail selling price in that group/Tier in terms of price sell The retail
of the brand owned is not lower than Conditions minimum retail
selling price in the group/Tier; or

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b. The minimum retail selling price in that group/Tier in thing The retail
selling price of the brand owned is lower from Minimum Retail Selling
Price Provisions in the Group/Tier aforementioned.
(2) The determination as referred to in paragraph (1) shall only apply 1 (one)
time at the time of determination of the Connectivity, and subsequent
determinations shall follow the provisions as stipulated in the Minister
of Finance Regulation regarding tobacco excise tariffs.
Article
10
In the event that the Factory Entrepreneur has been revoked the establishment of
the connectivity
Connectivity, then the Factory Entrepreneur can apply:
a. The decline in the Factory Entrepreneur class is the same as the
group/Tier before it was determined to have a Connectivity.
b. Adjustment of excise tariffs provided that:
1. Retail selling price at retail selling price before Set has a Connectivity
along the selling price retail It is not lower than the provisions on excise
tariffs result applicable tobacco; and
2. Excise tariffs based on provisions on excise tariffs result Applicable
tobacco, according to the previous group/Tier Set have a
connectivity’s.
Article
11
(1) The Head of Office may immediately redetermine the excise tariff of tobacco
products on a brand of tobacco products to Factory Entrepreneurs who
have been determined to have a Connectivity without having to wait 6 (six)
consecutive months not to order excise tapes.
(2) The redetermination of the excise tariff of tobacco products on a brand of
tobacco products as referred to in paragraph (1) in addition to meeting the
provisions in Article 9 paragraph (1) must also meet the following
conditions:
a. Excise tax tariffs on tobacco products on such brands shall not be
allowed more low from the last excise tariff on tobacco products Set;
and
b. Notified retail selling price at least same at the last set retail selling
price or notified.
Article
12
(1) The determination of tobacco product excise tax classes and tariffs shall
be carried out by the Head of Office after the Head of the Regional Office
or Director has determined the Determination of Connectivity Relations,
which results in changes in tobacco product excise classes and tariffs.

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(2) The implementation of the determination of tobacco product excise classes

and tariffs as referred to in paragraph (1) shall commence from the
Connectivity no later than the entry into force of this Ministerial
Regulation.
(3) Factory entrepreneurs may use excise bands at tariffs before the
determination of tobacco product classes and excise tariffs as referred to
in paragraph (1) no later than 30 (thirty) days from the date of
determination.
CHAPT
ER V
MISCELLANEOUS PROVISIONS AND TRANSITIONAL
PROVISIONS Article 13
(1) All Factory Entrepreneurs must declare whether or not they have a
Connectivity to the Head of Office at the latest
10 (ten) working days from the entry into force of this Ministerial
Regulation, using the sample format as stated in Annex VI which is an
integral part of this Ministerial Regulation.
(2) Factory entrepreneurs who do not submit statements as referred to in
paragraph (1) will be examined by the Head of Office.
(3) The inspection as referred to in paragraph (2) shall be further regulated in
the Regulation of the Director General of Customs and Excise.
Article
14
The Head of Office is obliged to collect the shortfall in the calculation of excise
payments and other State levies, the implementation of which is charged to
the Directotariff General of Customs and Excise, which occurs as a result of
the determination of Connectivity Relations.
Article
15
When this Ministerial Regulation comes into force, the provisions of Article
21A of the Minister of Finance Regulation Number 191/ PMK.04/2010
concerning Amendments to the Minister of Finance Regulation Number
200/PMK.04/2008 concerning Procedures for Granting, Freezing, and
Revoking the Taxable Goods Entrepreneur Identification Number for Tobacco
Product Factory Entrepreneurs and Importers are revoked and declared
invalid.
CHAPTER VI
CONCLUDING
PROVISIONS Article 16
This Ministerial Regulation shall enter into force 60 (sixty) days from the date
of promulgation.
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 11 2013, No.593

In order for everyone to know it, ordered the promulgation of this Ministerial
Regulation with its placement in the State Gazette of the Republic of Indonesia.

Set in Jakarta
on April 11, 2013
MINISTER OF
FINANCE OF THE
REPUBLIC OF
INDONESIA,

AGUS D.W.

MARTOWARDOJO Promulgated in Jakarta

on April 12, 2013
MINISTER OF LAW AND HUMAN RIGHTS OF
THE REPUBLIC OF INDONESIA,

AMIR SYAMSUDIN

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