REGULATION OF THE MINISTER OF COMMERCE
No. 15/M-DAG/PER/3/2006

CONCERNING
ORGANIZING AND CONTROLLING OVER IMPORT, DISTRIBUTION, SALE, AND LICENSE
FOR ALCOHOLIC BEVERAGE

MINISTER OF COMMERCE

Considering:

• a. that in accordance with the enforcement of Article 3 clause (2) and Article 6 of the Indonesian Presidential Decree No. 3/1997, concerning Organizing and Controlling over Alcoholic Beverage;
• b. that Alcoholic Beverage are products which are heavily related to health effects and Indonesian morality, we therefore need an implemental regulation which organizes the checking and controlling over import, distribution, sale and license for Alcoholic Beverage;
• c. That based on the consideration as mentioned in letter a, and letter b, then Ministerial Regulation of Commerce is necessary to issue.

In view of:

• 1. Government Regulation year 1934 (Government Gazette year 1938 Number 86);
• 2. Emergency Decree No. 7/1955 concerning investigation, Prosecution, and Economic Criminal Act, as altered for several times, most recent by Governmental Regulations, Substitution for Regulations No. 1/971;
• 3. Regulation No. 10/1995 concerning Customs Office;
• 4. Regulations No. 11/1995 concerning Duty Office;
• 5. Regulation No. 7/1996 concerning Food;
• 6. Regulation No. 34/1999 concerning Provincial Government of Jakarta Special Region, the Capital City of Indonesia;
• 7. Regulation No. 32/2004 concerning Provincial Government;
• 8. Government Regulation, Substitution for Regulation No. 8/1962 concerning Goods Trading under Supervision;
• 9. Government Regulation No. 1/1957 concerning Distribution of Companies as already renewed and amended the latest by Government Regulation No. 53/1957;
• 10. Regulation of Indonesian Government No. 11/1962 concerning Goods Trading under Supervision as renewed by Indonesian Government Regulation No. 19/2004;
• 11. Indonesian Government Regulation No. 33/1996 concerning Berikat Storage Place;
• 12. Indonesian Government Regulation No. 69/1999 concerning Label and Food Advertising;
• 13. Indonesian Government Regulation No. 102/2000 concerning National Standardization;
• 14. Indonesian Government Regulation No. 28/2004 concerning Food's Safety, Quality, and Nutrition;
• 15. Indonesian Presidential Decree No. 3/1997 concerning Checking and Controlling over Alcoholic Beverage;
• 16. Indonesian Presidential Decree No. 187/M/2004 concerning the establishment of United Indonesia Cabinet, as renewed by Presidential Decree No. 171/M/2005;
• 17. Indonesian Presidential Regulation No. 9/2005 concerning Position, Tasks, and Functions of Organization Chart and Work Order of Indonesian State Ministries, as renewed by Presidential Regulation No. 62/2005;
• 18. Indonesian Presidential Regulation No. 10/2005 concerning Organizational Units and Tasks of Echelon I in Indonesian Ministries as renewed for times with the most recent by Indonesian Presidential Regulation No. 80/2005;
• 19. The Ministerial Decree of Industries and Trade No. 230/MPP/KEP/7/1997 concerning Goods which are Regulated its Import Trade Order, as renewed for several times with the most recent by Ministerial Decree of Industries and Commerce No. 406/MPP/KEP/6/2004;
• 20. Ministerial Decree of Finance No. 490/KMK.05/1996 concerning Implementation Order of Luggage Import, Transportation's Crews, Border Passing, Mailing and Mailing Deposit Service;
• 21. Ministerial Decree of Finance No. 128/KMK.05/2000 concerning Free-Duty Shops;
• 22. Ministerial Decree of Industries and Commerce No. 753/MPP/KEP/11/2002 concerning Standardization and Indonesian Standard Watch;
• 23. Ministerial Decree of Finance No. 453/KMK.04/2002 concerning Implementation Order of Customs in the field of Import;
• 24. Ministerial Decree of Industries and Commerce No. 289/MPP/KEP/10/2001 concerning Standard Procedures of Issuing Business Trading License Certificate (SIUP);
• 25. Ministerial Regulation of Commerce No. 01/M-DAG/PER/3/2005 concerning Organization and Work Order in Ministry of Commerce, as renewed by Ministerial Regulation of Commerce No. 30/M-DAG/PER/12/2005;
• 26. Ministerial Regulation of Commerce No. 09/M-DAG/PER/3/2006 concerning Rules and Procedures over Issuing Business Trading License Certificate (SIUP);

DECIDES:

To stipulate :

REGULATION OF THE MINISTER OF COMMERCE CONCERNING IMPORT CHECKING AND CONTROLLING, DISTRIBUTION AND SALES, AND LICENSE FOR ALCOHOLIC BEVERAGE.

CHAPTER I
GENERAL PROVISION

Article 1

In these Regulations, the meaning of:

• 1. Alcoholic Beverage are drinks containing ethanol which processed from agricultural products containing carbohydrate made in the way of fermenting and distillation or non-distillation fermenting, both by prior care or without adding other substances, and also processed in the way of mixing concentrate and ethanol or in the way of liquidizing ethanol-containing beverage.
• 2. Supplying is an activity/process to supply Alcoholic Beverage by Producer or by Alcoholic Beverages Importers.
• 3. Alcoholic Beverage Trading is an activity to distribute and/or to sell Alcoholic Beverages.
• 4. Alcoholic Beverages Distribution is to distribute Alcoholic Beverages for sales.
• 5. Alcoholic Beverage Selling is a trade activity, which sell Alcoholic Beverages for public consumption.
• 6. Company is company that carries out activities in the field of Alcoholic Beverage Trading, which may be private company or Joint venture Company or Legal Institution owned by Indonesian-citizenship people, which domiciled in the territory of Indonesia.
• 7. Alcoholic Beverage Importer is a Registered-importing Company who owns General Import Passing Numbers, which earns special license from the Minister to import Alcoholic Beverages.
• 8. Distributor is a company appointed by Alcoholic Beverage Producers and/or Alcoholic Beverage Importers to distribute domestic-made Alcoholic Beverages and/or foreign-made Alcoholic Beverages for certain areas.
• 9. Sub-distributor is a company appointed by Distributor to distribute Alcoholic Beverages in massive scale within certain marketing areas.
• 10. Direct Seller of Alcoholic Beverages is a company carrying out sale of Alcoholic Beverages for final customers to consume in the specified places.
• 11. Alcoholic Beverage Retailer is a company conducting sales of Alcoholic Beverages for final customers within packs in specified places.
• 12. Free-Duty Shop is a building with certain limitations for carrying out the sales activities of imported goods and/or Custom-Spot Goods for certain foreign-citizenship people working in Indonesia, to-abroad-departing people, or from-abroad-arriving people, who get Free-Duty Entry, Free-Custom Entry, and Free-Tax Entry, or people who don't get all of the free charges.
• 13. Free-Duty-Shop Company is a Limited Liability Company, which exclusively sells imported goods and/or from other custom-spot goods in Free-Duty Shops.
• 14. Direct Seller and/or Alcoholic-Beverage Retailer for Health Purpose is a company carrying out sales of Alcoholic Beverages, which contain spies, herbal materials, or something like that, with the maximum alcohol rate of 15% (fifteen percent) to final customers for direct consumption and/or within packs in specified places.
• 15. Hotels, restaurants, and bars including pubs and night clubs, are in accordance with the regulations applicable in the field of tourism.
• 16. Business Trading License Certificate (SIUP) is a license certificate to be capable of carrying out trading activities.
• 17. Application Letter for Alcoholic-Beverage Trading License which is abbreviated to SP-SIUP-MB (Surat Permohonan Surat Izin Usaha Perdagangan Minuman Beralkohol) is a form to apply for license, which has to be filled in by companies, which consists of company profiles to get Alcoholic-Beverage SIUP.
• 18. Business Trading License for Alcoholic Beverages (BTL-AB) (Indonesian: SIUP-MB) is a license certificate to carry out the activities of exclusively Alcoholic-Beverage trading class B and/or C.
• 19. Minister is the minister who is responsible in the field of commerce.
• 20. Governor is the governor as government's representative and the Head of Province, as mentioned in Regulation No. 34/1999 concerning Provincial Government of Capital City Jakarta Special Area and Regulation No. 32/2004 concerning Provincial Government.
• 21. Regent is the Head of Regency as mentioned in Regulation No. 32/2004 concerning Provincial Government.
• 22. Mayor is the Head of District as mentioned in Regulation No. 32/2004 concerning Provincial Government.
• 23. Head of Provincial Service is the Head of Provincial Service who is responsible in the field of commerce.
• 24. Head of Regency/City Service is the Head of Regency/City Service who is responsible in the field of commerce.

CHAPTER II
CLASSIFICATION, TYPE AND QUALITY STANDARD

Article 2

Alcoholic Beverages are classified into:

• a. Alcoholic Beverages class A, is Alcoholic Beverages with ethanol rate (C2H5OH) from 1% (one percent) to 5% (five percent).
• b. Alcoholic Beverages class B, is Alcoholic Beverages with ethanol rate (C2H5OH) more than 5% (five percent) up to 20% (twenty percent).
• c. Alcoholic Beverages class C, is Alcoholic Beverages with ethanol rate (C2H5OH) more than 20% (twenty percent) up to 55% (fifty-five percent).

Article 3

Minister has determined the types or products of Alcoholic Beverages class A, B, and C, which come from domestic-made or imported goods that can be sold or traded in domestic markets, as mentioned in Appendix I of this Regulation.

Article 4

Alcoholic Beverages, class B and class C are included in alcoholic beverages, that the production, importation, distribution, and sales are determined as goods in supervision.

Article 5

Alcoholic Beverages sold in domestic markets as mentioned in Article 3 should fulfill the Indonesian Standard Rules, which are determined in reference to applicable regulations.

Article 6

Alcoholic Beverages, class A, B, and C, which are imported should fulfill the Indonesian Standard Rules, Quality Standard, and sanitary requirements for Alcoholic Beverages based on applicable Regulations.

CHAPTER III
IMPORTATION, DISTRIBUTION, AND SALES OF ALCOHOLIC BEVERAGES

Part One
Import

Article 7

(1) Company which can import Alcoholic Beverages, class A, B, and C, is a company appointed as Registered Importer of Alcoholic Beverages and is determined by Minister.

(2) The implementation of import for Alcoholic Beverages, class A, B, and C, as mentioned in clause (1), cannot be applied by other company under the mentioned importer's name.

(3) Minister determines the types and quantity of Alcoholic Beverages, which can be imported.

(4) More detailed rules concerning imported Alcoholic Beverages as mentioned in clause (1) will be regulated exclusively by Minister or appointed representative.

Part Two
Distribution and Sales

Article 8

(1) Distribution of Alcoholic Beverages, class B and/or C by Producing Company and Registered Importer (IT - Importir terdaftar) of Alcoholic Beverages should be done by Distributor appointed through written agreements.

(2) Distributor as mentioned in clause (1) conducts the distribution of alcoholic beverages in the manner of total-sale, and not allowed to retail.

(3) Distributor of Alcoholic Beverages as mentioned in clause (1) can only be appointed for as many as four (4) Producers and/or Registered Importers (IT - Importir Terdaftar) of Alcoholic Beverages.

(4) Distributor is only allowed to distribute Alcoholic Beverages class B and C from Producer and/or Importer who appoints it.

(5) Each Distributor Appointment as mentioned in clause (1) should be made a report to Directorate General of Domestic Commerce cq. Director of Market's and Distribution's Administration, Ministry of Commerce, by enclosing the appointment letter.

Article 9

(1) Distribution of Alcoholic Beverages class B, and C by Distributor should be done through Sub Distributor whom the Distributor appoints based on written agreements.

(2) Sub Distributor, as mentioned in clause (1), conducts distribution of alcoholic beverages in the manner of total-sale and not allowed to retail.

(3) Sub Distributor of Alcoholic Beverages as mentioned in clause (1) can only be appointed by as many as two (2) Distributors of Alcoholic Beverages.

(4) Sub Distributor can only be allowed to distribute Alcoholic Beverages class B and C from the Distributor who appoints it.

(5) Each Appointment of Sub Distributor as mentioned in clause (1) must be reported to General Director of Domestic Commerce cq. Director of Market's and Distribution's Administration, Ministry of Commerce by enclosing the appointment letter.

Article 10

Direct Seller of Alcoholic Beverages class A, B, and C can only be allowed to sell Alcoholic Beverages to consume in its own place.

Article 11

(1) Direct Seller of Alcoholic Beverages class B and C in retail way to consume in its own place, can only be allowed to:

• a. 3, 4, and 5 starred Hotels;
• b. Restaurants with signs of Talam Kencana and Talam Selaka;
• c. Bars including Pubs and Night Clubs.

(2) Sale of Alcoholic Beverages class B and C as mentioned in clause (1) letter a, is allowed to be consumed in hotel's rooms within packs contained not more than 187 ml (one hundred and eighty seven milliliter) for each pack.

(3) For specified areas where have no places as mentioned in clause (1), Regent/Mayor and Governor of DKI Jakarta by the consideration of foreign tourists' activities in their territories, can determine other certain places for Direct Sellers of Alcoholic Beverages class B and C located in Capital of Regency/City or other locations in accordance with this regulation.

Article 12

Direct Seller of Alcoholic Beverages, class A, B, and C, can only be allowed to sell:

• a. By day-time from 12.00 to 15.00 local time, and by evening-time from 19.00 to 22.00 local time;
• b. On holidays excluding Religions' Big Days, the evening-time can be extended by maximum of 2 hours;
• c. To adjust to typical life of local society, Regent/Mayor and Governor of DKI Jakarta can adjust the above schedule by not exceeding the total hours of sale as mentioned in letter a and b.

Article 13

Retailer of Alcoholic Beverages, class A, B, and C, can only be allowed to sell Alcoholic Beverages in the manner of Retailing in packs.

Article 14

(1) Alcoholic Beverages, class B and/or C, can only be allowed to be sold in retailing in packs in Free-Duty Shops.

(2) Regent/Mayor and Governor of DKI Jakarta can determine other locations beyond the locations mentioned in clause (1) to sell in retail in packs of Alcoholic Beverages, class B and C, in accordance with each local condition.

(3) Free-Duty Shop can only be allowed to sell Alcoholic Beverages, class B and C in retail to:

• a. Members of Diplomatic Corps;
• b. Foreign-citizenship professional workers who work at International Institutions;
• c. To-abroad-departing people;
• d. Just-arrived-from-abroad people;
• e. Any other foreigners that are determined by Minister of Finance cq. General Director of Customs Office.

(4) Retailing Sale for whom as mentioned in clause (3) can only be self-consumed and must be proven with ID Card as mentioned in Indonesian Ministerial Decree of Finance No. 128/KMK.05/2000 concerning Duty-Free Shop.

(5) Retailing Sale to whom as mentioned in clause (3) letter a, b, and e, can be done in Duty-Free Shop outside arrival or departure Terminal/Port.

(6) Retailing Sale to whom as mentioned in clause (3) letter c and d, can be done in Duty-Free Shop located in departure or arrival Terminal at International Airport, and must show passport and Boarding Pass.

Article 15

(1) Besides the rules as mentioned in Article 11 clause (3) and Article 14 clause (2), Regent/Governor of DKI Jakarta can determine other locations for Direct Seller to be consumed and Retailer in packs of Alcoholic Beverages class B containing spies and herbal materials or other related types for health purpose which have a maximum alcohol rate of 15% (fifteen percent).

(2) Drinks for health purpose as mentioned in clause (1) are determined by Minister of Health.

Part Three
Label for Alcoholic Beverages

Article 16

(1) Each Pack or bottle of Alcoholic Beverages class A, B, and C, which is domestic-made and/or imported products for domestic use, should attach label as mentioned in Regulation Number 7 Year 1996 concerning Food.

(2) Label as mentioned in clause (1) should use Indonesian language, Arabic numbers, Latin letters, and at least consists of the information below:

• a. Name of product;
• b. Alcohol proportion;
• c. List of materials in use;
• d. Net weight;
• e. Name and address of Industrial company which produces or imports Alcoholic Beverages;
• f. Date, month, and year of expiration;
• g. Noting "Alcoholic Beverage" and
• h. Warning Notice, "ages under 21 and pregnant women are prohibited to drink".

CHAPTER IV
LICENSE

Part One
Legality of Company

Article 17

Distributor appointed by Producer or Importer must fulfill the next requirements:

• a. Established as a Legal Institution, Private or Union, owned by Indonesian citizens;
• b. Having Business Trading License Certificate (SIUP - Surat Izin Usaha Perdagangan) class B, and Business Trading License Certificate for Alcoholic Beverages (SIUP MB - Surat Izin Usaha Perdagangan Minuman Beralkohol), as Distributor of Alcoholic Beverages class B and C;
• c. Having/possessing storehouse for storing Alcoholic Beverages only, and having/possessing sufficient transportation;
• d. Having distribution web of Alcoholic Beverages up to level Sub Distributor in its working area, proven by list of the appointed Sub Distributor;
• e. Having experiences in the field of Alcoholic-Beverage Distribution for at least two (2) years;
• f. Having no criminal records, having responsibility-sense and high dedication in conducting the rules of Alcoholic-Beverage Distribution.

Article 18

Sub Distributor appointed by Distributor must fulfill the next requirements:

• a. Established as Legal Institution, Private or Union, owned by Indonesian citizens;
• b. Having Business Trading License Certificate (SIUP) class Middle and SIUP MB for Sub Distributor of Alcoholic Beverages class B and C;
• c. Having/possessing storehouse to store Alcoholic Beverages only, having and or possessing sufficient transportation;
• d. Having distribution web of Alcoholic Beverages up to level Retailer in its working area proven by List of Direct Seller of Alcoholic Beverages, Alcoholic Beverages Retailer, Direct Seller and/or appointed Alcoholic Beverages Retailer for Health Purpose;
• e. Having experiences as alcoholic beverage seller, having no criminal records, having responsibility-sense and high dedication in conducting the rules of Alcoholic Beverage Distribution.

Article 19

Direct Seller of Alcoholic Beverages, Retailer of Alcoholic Beverages, and Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose must fulfill the requirements as follows:

• a. Established as individual or company classified as legal institution or non-legal institution owned by Indonesian citizens;
• b. Having at least Business Trading License Certificate class Small and Business Trading License for Alcoholic Beverages as Direct Seller and/or Retailer of Alcoholic Beverages class B and c;
• c. Having experiences as beverage seller, having no criminal records, having good responsibility-sense and high dedication in conducting the rules of Alcoholic Beverage Distribution.

Part Two
Business Trading License Certificate for Alcoholic Beverages (SIUP - MB)

Article 20

(1) Each company working in the field of Alcoholic Beverage Trading class B and/or C must have Business Trading License for Alcoholic Beverages (SIUP-MB).

(2) Company working in the field of Alcoholic Beverage Trading, class A only needs Business Trading License certificate and no need to have Business Trading License for Alcoholic Beverages.

Article 21

Business Trading License for Alcoholic Beverages, based on its purpose, consists of:

• a. Business Trading License for Alcoholic Beverages for Importer applicable in entire Indonesian Territory;
• b. Business Trading License for Alcoholic Beverages for Distributor applicable in market areas in accordance with Producer/Importer's appointment;
• c. Business Trading License for Alcoholic Beverages for Sub Distributor applicable in market areas in accordance with Distributor's appointment;
• d. Business Trading License for Alcoholic Beverages for Duty-Free Shop in accordance with the license given by Minister of Finance;
• e. Business Trading License for Alcoholic Beverages for Direct Seller of Alcoholic Beverages class B and C for 3, 4, and 5 starred hotels, restaurants with signs of Talam Kencana and Talam Selaka, Bars including Pubs and Night Clubs, also other specified places determined by Regent/Mayor or Governor of DKI Jakarta applicable in local Regency/City areas or DKI Jakarta;
• f. Business Trading License for Alcoholic Beverages for Retailer of Alcoholic Beverages class B and C in other places which are determined by Regent/Mayor or Governor of DKI Jakarta applicable in local Regency/City or DKI Jakarta;
• g. Business Trading License for Alcoholic Beverages for Direct Seller of Alcoholic Beverages and/or Retailer of Alcoholic Beverages for Health Purpose in other places determined by Regent/Mayor or Governor of DKI Jakarta applicable in local areas of Regency/City or DKI Jakarta.

Article 22

(1) Business Trading License for Alcoholic Beverages is effective for three (3) years or in accordance with the validity period of Appointment Letter, from date of issue and can be expanded.

(2) Business Trading License for Alcoholic Beverages as mentioned in clause (1), which will be expired, can be expanded not more than three (3) months prior to the expiration.

Article 23

(1) Authorization of issuing Business Trading License for Alcoholic Beverages as mentioned in Article 21 is on Minister's hand.

(2) Authorization of issuing Business Trading License for Alcoholic Beverages as mentioned in clause (1), the minister will delegate to:

• a. General Director of Domestic Commerce to issue Business Trading License for Alcoholic Beverages for Importer, Distributor, and Sub Distributor of Alcoholic Beverages class B and/or C;
• b. Governor cq. Head of Provincial Service who controls trade to issue Business Trading License for Alcoholic Beverages for Duty-Free Shop as Retailer of Alcoholic Beverages class B and/or C;
• c. Regent/Mayor cq. Head of Service for Regency/City or Governor of DKI Jakarta cq. Head of Provincial Service of DKI Jakarta who deals with trade to issue SIUP-MB for Direct Seller of Alcoholic Beverages and Retailer of Alcoholic Beverages in other places, and Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose.

Article 24

(1) Business Trading License for Alcoholic Beverages for Direct Seller of Alcoholic Beverages, Retailer of Alcoholic Beverages in other locations, and SIUP-MB for Direct Seller of Alcoholic Beverages and/or Retailer of Alcoholic Beverages for Health Purpose are issued based on the domicile of the company in local Regency/City or DKI Jakarta.

(2) Business Trading License for Alcoholic Beverages for Duty-Free Shop is issued based on the domicile of the company in local province.

Part Three
Procedure for making Application Letter of Business Trading License Certificate For Alcoholic Beverages

Article 25

(1) Business Trading License for Alcoholic Beverages application for Importer, Distributor, or Sub Distributor of Alcoholic Beverages is given to General Director of Domestic Commerce, Ministry of Commerce, by filling in Application Letter for Business Trading License for Alcoholic Beverages (Surat Permohonan SIUP-MB), as mentioned in Appendix II A in this Regulation, by enclosing actual and valid script, also the copy of it, each one (1) copy, for:

a. Importer of Alcoholic Beverages:

• 1. Establishment/Alteration deeds for Limited Liability Company; and
• 2. Letter of Jurisdiction for Establishment/Alteration Deeds from Ministry of Law and Human Rights for Limited Liability Company;
• 3. Business Trading License class B;
• 4. Import-Passing Numbers (API - Angka Pengenal Impor);
• 5. Company's Registration Certificate (TDP - Tanda Daftar Perusahaan);
• 6. Taxpayer Code Numbers (NPWP - Nomor Pokok Wajib Pajak);

b. Distributor of Alcoholic Beverages:

• 1. Appointment Letter as Distributor from Alcoholic Beverage Manufacturer and/or Importer of Alcoholic Beverages;
• 2. Existence and Legality Recommendation of company from Governor cq. local Head of Provincial Service dealing with trade;
• 3. Business Trading License Certificate class B (SIUP B);
• 4. Company Registration Certificate (TDP);
• 5. Taxpayer Code Numbers (NPWP);
• 6. Businessperson's Main Number of Customs-obligatory Goods (NPPBKC - Nomor Pokok Pengusaha Barang Kena Cukai), for company extending Business Trading License for Alcoholic Beverages;
• 7. Establishment/Alteration Deeds for Limited Liability Company and also Jurisdiction Letter for Establishment/Alteration Deeds from Ministry Law and Human Rights for Limited Liability Company; and
• 8. Sale Realization during the effectiveness of Business Trading License and/or Sale Plan one (1) year ahead of the distributed Alcoholic Beverages;
• 9. Statement Letter by legal stamp from the company, which states not doing sale of Alcoholic Beverages in retail.

c. Sub Distributor of Alcoholic Beverages:

• 1. Appointment Letter as Sub Distributor from Distributor of Alcoholic Beverages;
• 2. Existence and Legality Recommendation of company from Governor cq. local Head of Provincial Service dealing with trade;
• 3. Business Trading License Certificate class Middle (SIUP Menengah);
• 4. Company Registration Certificate (TDP);
• 5. Taxpayer Code Numbers (NPWP);
• 6. Businessperson's Main Number of Customs-obligatory Goods (NPPBKC - Nomor Pokok Pengusaha Barang Kena Cukai), for company extending Business Trading License for Alcoholic Beverages;
• 7. Establishment/Alteration Deeds for Limited Liability Company and also Jurisdiction Letter for Establishment/Alteration Deeds from Ministry Law and Human Rights for Limited Liability Company; and
• 8. Statement Letter by legal stamp from the company, which states not doing sale of Alcoholic Beverages in retail.

(2) Business Trading License for Alcoholic Beverages application for Duty-Free Shop of Alcoholic Beverages class B and/or C is given to Governor cq. Head of Provincial Service who is responsible in the field of commerce, by filling in Application Letter as mentioned in Appendix II B of this Regulation, by enclosing actual and valid script and also the copy of it each one (1) copy:

• 1. Business Place License Certificate (SITU - Surat Izin Tempat Usaha) for particularly Alcoholic Beverages;
• 2. Duty-Free Shop License Certificate from Minister of Finance;
• 3. Business Trading License Certificate (SIUP) Middle or Large;
• 4. Company Registration Certificate (TDP);
• 5. Taxpayer Code Numbers (NPWP);
• 6. Businessperson's Main Number of Customs-obligatory Goods (NPPBKC - Nomor Pokok Pengusaha Barang Kena Cukai), for company extending Business Trading License for Alcoholic Beverages;
• 7. Establishment/Alteration Deeds for Limited Liability Company and also Jurisdiction Letter for Establishment/Alteration Deeds from Ministry of Law and Human Rights for Limited Liability Company; and
• 8. Sale Realization during the effectiveness of SIUP and/or Sale Plan one (1) year ahead of the distributed Alcoholic Beverages.

(3) Business Trading License for Alcoholic Beverages Application for Direct Seller of Alcoholic Beverages class B and/or C, Retailer of Alcoholic Beverages class B and C, except Duty-Free Shop, and Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose, is given to Regent/Mayor cq. Head of Regency/City Service or Governor of DKI Jakarta cq. Head of DKI Jakarta Provincial Service, by filling in the Application Letter as mentioned in Appendix II B of this Regulation, by enclosing actual and valid script and also the copy of it each one (1) copy for:

a. 3, 4, and 5 starred hotels, restaurants with signs of Talam Kencana and Talam Selaka and Bars, Pubs, and Night Clubs:

• 1. Business Trading License Certificate (SIUP) and/or Letter of Hotel Fixed-Business License, specially for 3, 4, and 5 starred hotels or restaurants with signs of Talam Kencana and Talam Selaka, Bars, Pubs, and Night Clubs from authorized institution;
• 2. Business Place License Certificate (SITU) specially for Alcoholic Beverages;
• 3. Company Registration Certificate (TDP);
• 4. Taxpayer Code Numbers (NPWP);
• 5. Establishment/Alteration Deeds for Limited Liability Company and also Jurisdiction Letter for Establishment/Alteration Deeds from Ministry of Law and Human Rights for Limited Liability Company; and
• 6. Sale Realization during the effectiveness of SIUP and/or Sale Plan one (1) year ahead of the distributed Alcoholic Beverages.

b. Direct Seller of Alcoholic Beverages in other specified locations, Retailer of Alcoholic Beverages for Health Purpose:

• 1. Recommendation of location for the special company of Alcoholic Drink from local Sub-district Head;
• 2. Business Place License Certificate (SITU) particularly for Alcoholic Beverages;
• 3. Business Trading License Certificate (SIUP);
• 4. Company Registration Certificate (TDP);
• 5. Taxpayer Code Numbers (NPWP);
• 6. Establishment/Alteration Deeds for Limited Liability Company and also Jurisdiction Letter for Establishment/Alteration Deeds from Ministry Law and Human Rights for Limited Liability Company; and
• 7. Sale Realization during the effectiveness of SIUP and/or Sale Plan one (1) year ahead of the distributed Alcoholic Beverages.

(4) Actual and valid script as mentioned in clauses (1), (2), and (3) will be returned to the company at the same time with Business Trading License for Alcoholic Beverages delivery.

Article 26

The Issue of Business Trading License for Alcoholic Beverages for Importer, Distributor, and Sub Distributor of Alcoholic Beverages class B and C, is determined no charges (Rp.0,-).

Article 27

Company, working in the business field of Alcoholic Beverages, which is undergoing data changing of Business Trading License, must replace with Business Trading License for Alcoholic Beverages.

Article 28

(1) Not more than five (5) work-days since the acceptance of the Application Letter of Business Trading License for Alcoholic Beverages, as mentioned in Article 25 clause (1) in the right way and complete, General Director of Domestic Commerce must issue Business Trading License for Alcoholic Beverages, as mentioned in Appendix III A of this Regulation.

(2) Not more than five (5) work-days since the acceptance of the Application Letter of Business Trading License for Alcoholic Beverages, as mentioned in Article 25 clause (2) in the right way and complete, Governor cq. Head of Provincial Service who is responsible in commerce, must issue Business Trading License for Alcoholic Beverages, as mentioned in Appendix III B of this Regulation.

(3) Not more than five (5) work-days since the acceptance of the Application Letter of Business Trading License for Alcoholic Beverages, as mentioned in Article 25 clause (3) in the right way and complete, Regent/Mayor cq. Head of Regency/ City Service or Governor of DKI Jakarta, cq. Head of DKI Provincial Service, who is responsible in commerce, must issue Business Trading License for Alcoholic Beverages, as mentioned in Appendix III B of this regulation.

(4) In the case of the completing process of the Application Letter of Business Trading License for Alcoholic Beverages, as mentioned in Article 25 clauses (1), (2), and (3), has not been done in the correct order and complete, then General Director of Domestic Commerce or Governor cq. Head of Provincial Service or Regent/Mayor cq. Head of Regency/city or Governor of DKI Jakarta cq. Head of DKI Provincial Service, who is responsible in commerce, must provide written report not more than five (5) work-days since the date of the acceptance of SP SIUP-MB, to the company along with the argumentations.

(5) Not more than thirty (30) work-days since the date of the acceptance of report letter, as mentioned in clause (4), the company may complete the requirements.

(6) In the case of after exceeding the determined period, as mentioned in clause (5), the company hasn't conducted the procedures of Business Trading License for Alcoholic Beverages applying in correct way and complete, as mentioned in Article 25 clauses (1), (2), and (3), the Application Letter of Business Trading License for Alcoholic Beverages will be refused, and the company must ask another Application Letter.

CHAPTER V
STORAGING ALCOHOLIC BEVERAGES

Article 29

(1) Importer of Alcoholic Beverages, Distributor, Sub Distributor, Direct Seller of Alcoholic Beverages, Retailer of Alcoholic Beverages, and Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose, class A, B, and C, must store Alcoholic Beverages class A, B, and C in storehouse separate from other goods.

(2) Arrival and departure of Alcoholic Beverages class A, B, and C from storehouse, as mentioned in clause (1), must be provided with Storage-Data Card.

(3) Storage-Data Card, as mentioned in clause (2), at least contains the amount, trademark, the date of goods arrival to storehouse, the date of goods departure from storehouse, and the manufacturer.

(4) The storage-Data Card, as mentioned in clauses (2), and (3), must be exposed to the checking officials.

CHAPTER VI
PROHIBITED ACTIVITIES

Article 30

(1) Alcoholic Beverages not included in Alcoholic Beverages class A, B, and C, as mentioned in Article 2 and Article 3 of this regulation, are prohibited to be imported.

(2) Importer of Alcoholic Beverages class A, B, and C, is not allowed to import Alcoholic Beverages whose netto less than one hundred and eighty (180) ml, except for the purpose of sale to consume in hotel's rooms with packs not more than one hundred and eighty-seven (187) ml per pack.

(3) Raw material of Alcoholic Beverages called concentrate is forbidden to be imported.

Article 31

(1) Alcoholic Beverages not included as Alcoholic Beverages class A, B, and C, as mentioned in Article 2 and Article 3 of this regulation, are forbidden to be distributed or sold in domestic markets;

(2) Everyone is not allowed to bring in Alcoholic Beverages class A, B, and C from abroad as a gift, except to be self-consumed maximum one thousand (1000) ml each person with netto not less than one hundred and eighty (180) ml.

(3) Everyone is not allowed to sell and distribute Alcoholic Beverages class A, B, and C whose netto less than one hundred and eighty (180) ml.

Article 32

Company is not allowed to attach label "Halal" (Arabic for "allowed, permitted, rightful") on Alcoholic Beverages class A, B, and C from both domestic products and imported products.

Article 33

Everyone is not allowed to sell in retail the Alcoholic Beverages class A, B, and C in packs and/or sell for direct consumption in locations of:

• a. youth centers, street vendors, terminals, stations, small shops, youth dormitories, and campsites;
• b. locations by religious buildings, schools, hospitals, and neighborhood; and
• c. other specified locations determined by Regent/Mayor or Governor of DKI Jakarta by considering the conditions of each area.

Article 34

Direct Seller of Alcoholic Beverages and Retailer of Alcoholic Beverages, are not allowed to sell Alcoholic Beverages class A, B, and C, except to Indonesian Citizens aged 21 years old or more proven by ID Card, and adult foreigners.

Article 35

Importer, Distributor, Sub Distributor, Direct Seller of Alcoholic Beverages and Retailer of Alcoholic Beverages class A, B, and C, are not allowed to advertise Alcoholic Beverages class A, B, and c.

CHAPTER VII
WATCHING

Part One
Controlling

Article 36

Controlling in order to watch towards:

• a. importer of Alcoholic Beverages, Distributor, and Sub Distributor;
• b. Businessperson of Duty-Free Shop, Direct Seller, Retailer of Alcoholic Beverages class A, B, and C, and also Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose;
• c. License, Quality Standard, Import, implementation of distribution and sale of Alcoholic Beverages class A, B, and C; and
• d. Place/location of distribution and sale of Alcoholic Beverages class A, B, and C.

Article 37

(1) Minister acts the controlling in order to do watching, as mentioned in Article 36 letters a, and c, together with other related Ministers cooperatively.

(2) Controlling in order to do watching, as mentioned in Article 36 letters b, c, and d, is carried out by Regent/Mayor or Governor of DKI Jakarta for DKI Jakarta in accordance with related institutions.

(3) Governor organizes the implementation of controlling in order to do watching, which is conducted by Regent/Mayor, as mentioned in clause (2).

(4) Governor must convey the report of controlling implementation result, as mentioned in clause (2), to Minister.

Part Two
Reporting

Article 38

(1) Importer of Alcoholic Beverages class A, B, and C, must give report for each conducted import to General Director of Foreign Commerce, with copies to:

• 1. General Director of Agro and Chemical Industries, Ministry of Industries;
• 2. General Director of Tax, Ministry of Finance;
• 3. General Director of Customs, Ministry of Finance;
• 4. Institution of Medicine and Food Watching.

(2) The Report delivery, as mentioned in clause (1), is conducted not more than fifteen (15) calendar-days since the date of goods arrival at unloading port by using form, as mentioned in Appendix IV of this regulation.

Article 39

(1) Importer, Distributor, and Sub Distributor of Alcoholic Beverages, must give report of the supply realization and distribution of Alcoholic Beverages class A, B, and C, to General Director of Domestic Commerce, with copies to:

• 1. General Director of Tax, Ministry of Finance;
• 2. General Director of Customs, Ministry of Finance;
• 3. Institution of Medicine and Food Watching;
• 4. Head of Provincial Service, who is responsible in local commerce; and
• 5. Head of Regency/City Service, who is responsible in local commerce.

(2) Businessperson of Duty-Free Shop, who sells Alcoholic Beverages, must give report concerning the realization of supply and sale of Alcoholic Beverages class A, B, and C, to Governor cq. Head of Provincial Service, with copies to:

• 1. General Director of Domestic Commerce, Ministry of Commerce;
• 2. General Director of Tax, Ministry of Finance;
• 3. General Director of Customs, Ministry of Finance;
• 4. Institution of Medicine and Food Watching; and
• 5. Local Head of Regency/City Service, dealing with commerce.

(3) Direct Seller of Alcoholic Beverages (3, 4, and 5 starred Hotels, Restaurants with signs of Talam Kencana and Talam Selaka, Bars including Pubs and Night Clubs, and also other specified places), and Retailer of Alcoholic Beverages class A, B, and C in other places, must give report of the supply realization and sale of Alcoholic Beverages class A, B, and C, to Governor of DKI Jakarta cq. Head of Provincial Service or Regent/Mayor cq. Head of Regency/City, with copies to:

• 1. General Director of Domestic Commerce, Ministry of Commerce;
• 2. General Director of Tourism;
• 3. General Director of Tax, Ministry of Finance;
• 4. General Director of Customs, Ministry of Finance;
• 5. Institution of Medicine and Food Watching; and
• 6. Governor cq. Local Head of Provincial Service.

(4) Direct Seller and Retailer of Alcoholic Beverages for Health Purpose, must give report concerning the supply realization and sale of Alcoholic Beverages class B and/or C, to Governor of DKI Jakarta cq. Head of Provincial Service or Regent/Mayor cq. Head of Regency/City Service, with copies to Governor cq. Local Head of Provincial Service.

(5) The report delivery, as mentioned in clauses (1), (2), (3), and (4), must be done in every three-month period as follows:

• - Three-month period I : January 1 to March 31.
• - Three-month period II : April 1 to June 30.
• - Three-month period III : July 1 to September 30.
• - Three-month period IV : October 1 to December 31.

(6) Report as mentioned in clause (1), as attached in Appendix V A for clauses (2), (3), and (4), as mentioned in Appendix V B of this regulation.

Article 40

(1) General Director of Foreign Commerce conveys recapitulation report, as mentioned in Article 38 to Minister.

(2) Governor cq. Head of Provincial Service conveys recapitulation report, as mentioned in Article 39 clauses (2), (3), and (4), to General Director of Domestic Commerce.

(3) General Director of Domestic Commerce conveys recapitulation report, as mentioned in Article 39 clause (1), and recapitulation report as mentioned in clause (2) to Minister.

Article 41

Except the obligations as mentioned in Article 38 and Article 39, Company must give information concerning its business activity in case of needed by Minister or the Representative appointed by Minister or Official given authority to issue Business Trading License for Alcoholic Beverages.

CHAPTER VIII
SANCTION

Article 42

(1) Company violating the rules as mentioned in Article 8 clauses (1), and (5), Article 9 clause (1) and (5), Article 17, Article 18, Article 19, and Article 41, will be condemned administrative sanction in the form of Written Warning from the Official issuing Business Trading License for Alcoholic Beverages /appointed representative.

(2) Written warning, as mentioned in clause (1), is given for maximum three (3) times continuously during one (1) month by Issuer Official of Business Trading License for Alcoholic Beverages /appointed Official, as mentioned in Appendix VI of this regulation.

Article 43

(1) Company violating the rules, as mentioned in Article 27, will be condemned administrative sanction in the form of temporary invalidation of Business Trading License for Alcoholic Beverages, by initially given administrative sanction in the form of written notification for maximum three (3) times continuously during one (1) month from Issuer Official of Business Trading License/appointed representative.

(2) Temporary Invalidation, as mentioned in clause (1), is conducted by Issuer Official of Business Trading License for Alcoholic Beverages /appointed representative, as mentioned in Appendix VII of this regulation.

(3) During the temporary invalidation of Business Trading License for Alcoholic Beverages, the company is not allowed to run business of Alcoholic Beverage trading.

(4) The temporary-invalid Business Trading License for Alcoholic Beverages may be re-applied if the company has considered the written notification by doing correction and conducting its obligatory in accordance with the rules of this regulation mentioned in Appendix VIII.

Article 44

(1) Company violating the rules, as mentioned in Article 29 clauses (1), (2), and (4), Article 38 clause (1), Article 39 clauses (1), (2), (3), and (4), will be condemned administrative sanction in the form of temporary invalidation of Business Trading License for Alcoholic Beverages from the Issuer Official of Business Trading License for Alcoholic Beverages /appointed representative.

(2) In case of company disobeys the rules, as mentioned in clause (1), within thirty (30) days will be condemned administrative sanction in the form of permanent invalidation of Business Trading License for Alcoholic Beverages.

(3) The permanent invalidation, as mentioned in clause (2), is conducted by Issuer Official of Business Trading License for Alcoholic Beverages /appointed representative as mentioned in Appendix IX of this regulation.

(4) Company whose Business Trading License for Alcoholic Beverages has been terminated may convey objection to the Issuer Official of SIUP-MB/appointed representative not more than thirty (30) work-days since the invalidation date.

(5) The Issuer Official of Business Trading License for Alcoholic Beverages /appointed representative, as mentioned in clause (3), not more than fifteen (15) work-days since the acceptance of objection, may be accepted or refused in written reply, along with the argumentations.

(6) In case of the objection is accepted, the terminated SIUP-MB may be reapplied.

(7) Alcoholic Beverage Company, which has terminated SIUP-MB, cannot run business of Alcoholic Beverages for as long as one (1) year since the invalidation date.

Article 45

Company violating the rules, as mentioned in Article 5, Article 6, Article 7 clause (2), Article 8 clause (2), Article 10, Article 11 clauses (1), (2), and (3), Article 12, Article 13, Article 14 clauses (1), (2), and (3), Article 16 clauses (1) and (2), Article 20 clause (1), Article 30, Article 31, Article 32, Article 33, Article 34, and Article 35, will be condemned criminal sanction in accordance with applicable law.

CHAPTER VIII
PRECEDING REGULATIONS

Article 46

By the effectiveness of this Regulation, therefore:

• 1. Ministerial Decree of Industries and Commerce Number 359/MPP/Kep/10/1997 concerning Watching and Controlling over imported products, Distribution and Sale of Alcoholic Beverages;
• 2. Ministerial Decree of Industries and Commerce No. 360/MPP/Kep/10/1997 concerning the Procedure of Issuing Trading License Certificate for Alcoholic Beverages; and
• 3. Ministerial Decree of Industries and Commerce Number 361/MPP/Kep/10/1997 concerning the appointment of Distributor and Sub Distributor of Alcoholic Beverages.
• 4. The Ministerial Decrees, as mentioned in clauses (1), (2), and (3), are stated inapplicable, except the rules concerning Alcoholic Beverage Industries.

Article 47

Company submitting Business Trading License for Alcoholic Beverages application class B and/or C, in process of issuing, prior to this regulation, must resubmit the application to the authorized official to obtain Business Trading License for Alcoholic Beverages in accordance with this regulation.

Article 48

Implementation regulation and technical matters, which are not regulated in this regulation, will be determined further by General Director of Domestic Commerce, Ministry of Commerce.

CHAPTER IX
CLOSING

Article 49

This regulation is effective since the date of approval.

So therefore everyone knows to declare this regulation in Indonesian Government Gazette.

Approved in Jakarta
On March 29, 2006

THE MINISTER OF COMMERCE
MARI EKA PANGESTU

APPENDIX OF REGULATION OF THE MINISTER OF COMMERCE

No : 15/M-DAG/PER/3/2006
Date : March 29, 2006

List of Appendix

• 1. Appendix I : Types and Products of Alcoholic Beverages can be sold or traded in domestic markets.
• 2. Appendix II A : Business Trading License for Alcoholic Beverages Application Letter for Importer/Distributor/Sub Distributor of Alcoholic Beverages.
• 3. Appendix II B : Business Trading License for Alcoholic Beverages Application Letter for Direct Seller of Alcoholic Beverages/Retailer of Alcoholic Beverages/ Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose.
• 4. Appendix III A : Business Trading License for Alcoholic Beverages for Importer/Distributor/Sub Distributor of Alcoholic Beverages.
• 5. Appendix III B : Business Trading License for Alcoholic Beverages for Direct Seller of Alcoholic Beverages/Retailer of Alcoholic Beverages/Direct Seller and/or Retailer of Alcoholic Beverages for Health Purpose.
• 6. Appendix IV : Realization Report of Import Distribution of Alcoholic Beverages.
• 7. Appendix V A : Three -monthly Report of the Supply Realization and Distribution of Alcoholic Beverages for Importer/Distributor/Sub Distributor.
• 8. Appendix V B : Three-monthly Report of the Supply Realization and Distribution of Alcoholic Beverages for Health Purpose.
• 9. Appendix VI : Notification Letter concerning the procedure of Business Trading License for Alcoholic Beverages.
• 10. Appendix VII : Decree of Issuer Official of Business Trading License concerning temporary invalidation of Business Trading License for Alcoholic Beverages.
• 11. Appendix VIII : Decree of Issuer Official of Business Trading License concerning revalidation of Business Trading License for Alcoholic Beverages.
• 12. Appendix IX : Decree of Issuer Official of Business Trading License concerning permanent invalidation of Business Trading License for Alcoholic Beverages.