The minister of finance has recently issued ministerial regulation No. 06/PMK.010/2005 Year 2005 on the exemption of Goods Imported for Upstream Oil and Gas Business Activities (“Regulation”). The Regulation decreases import duties in the aforementioned sectors into 0%.

Such exemptions are given to Business Entities and other Permanent Legal Entities involved in contracts with the government’s oil and gas upstream regulator, BP-Migas. The application in obtaining the facility shall be forwarded to the Directorate General of Custom of the Ministry of Finance with a cc to the Directorate General of Oil and Gas of the Ministry of Energy.

Further ministerial decree will be issued by the custom directorate in answering the application. The Regulation contained a list of goods that may be subjected to duty exemption. The Regulation is valid on the period of its enactment on January 28^th 2005 until July 15^th 2006. All goods imported since July 16^th  2002 may be subjected to exemption.