DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER: 14/PER/M.KOMINFO/09/2010
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1 DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER: 14/PER/M.KOMINFO/09/2010 ON PROCEDURE OF EVALUATING ACHIEVEMENT ON THE LEVEL OF DOMESTIC COMPONENT IN OPERATIONAL EXPENDITURE/OPEX OF TELECOMMUNICATION PROVISION BY THE GRACE OF GOD THE ALMIGHTY MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY, Considering : that within the framework of evaluating the achievement on the level of domestic component in operational expenditure/opex in telecommunication provision, it is deemed necessary to ratify a Decree of the Minister of Communication and Information Technology on Procedure of Evaluating Achievement on the Level of Domestic Component in Operational Expenditure/Opex of Telecommunication Provision. Bearing in mind : 1. Law of the Republic of Indonesia Number 36 Year 1999 on Telecommunication (State Gazette of the Republic of Indonesia Number 154 Year 1999, Additional State Gazette of the Republic of Indonesia Number 3881); 2. Government Regulation of the Republic of Indonesia Number 52 Year 2000 on Telecommunication Provision (State Gazette of the Republic of Indonesia Number 107 Year 2000, Additional State Gazette of the Republic of Indonesia Number 3980); 3. Government Regulation of the Republic of Indonesia Number 53 Year 2000 on Use of Radio Frequency Spectrum and Satellite Orbit (State Gazette of the Republic of Indonesia Number 108 Year 2000, Additional State Gazette of the Republic of Indonesia Number 3981);
2 2 4. Government Regulation of the Republic of Indonesia Number 7 Year 2009 on Kinds and Tariffs of the Kinds of Non-Tax State Income Applicable at the Department of Communication and Information Technology (State Gazette of the Republic of Indonesia Number 20 Year 2009, Additional State Gazette of the Republic of Indonesia Number 4974); 5. Decree of the President of the Republic of Indonesia Number 47 Year 2009 on Formation and Organization of State Ministries of the Republic of Indonesia; 6. Decree of the President of the Republic of Indonesia Number 24 Year 2010 on Positions, Tasks, and Functions of State Ministries of the Republic of Indonesia and Organizational Structures, Tasks, and Functions of Echelon I of State Ministries of the Republic of Indonesia; 7. Decision of the Minister of Communication Number KM 21 Year 2001 on Provision of Telecommunication Service as amended latest by the Decree of the Minister of Communication and Information Technology Number 31/PER/M.KOMINFO/09/2008; 8. Decree of the Minister of Communication and Information Technology Number 03/P/M.Kominfo/4(5?)/2005 on Adjustment of Nomenclatures of a number of Decisions/Decrees of the Minister of Communication which regulate Special Material Contents in the field of Post and Telecommunication; 9. Decree of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006 on Provision of the Use of Radio Frequency Band of 2.1 GHz for the Provision of Cellular Mobile Network as amended by the Decree of the Minister of Communication and Information Technology Number 43//PER/M.KOMINFO/12/2006; 10. Decree of the Minister of Communication and Information Technology Number 25/P/M.KOMINFO/7/2008 on Organization and Working of the Department of Communication and Information Technology; 11. Decree of the Minister of Communication and Information Technology Number 32/PER/M.KOMINFO/10/2008 on
3 3 Universal Telecommunication Service Obligation as amended by the Decree of the Minister of Communication and Information Technology Number 03/PER/M.KOMINFO/02/2010; 12. Decree of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/01/2009 on Structuring the Radio Frequency Band for the Purpose of Wireless Broadband Service; 13. Decree of the Minister of Industry Number 49/M- IND/PER/5/2009 on Guidelines for the Use of Domestic Product in Procuring Goods/Services of the Government; 14. Decree of the Minister of Communication and Information Technology Number 01/PER/M.KOMINFO/01/2010 on Provision of Telecommunication Network. DECIDES To ratify : DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY ON PROCEDURE OF EVALUATING ACHIEVEMENT ON THE LEVEL OF DOMESTIC COMPONENT IN OPERATONAL EXPENDITURE/OPEX OF TELECOMMUNICATION PROVISION CHAPTER I GENERAL PROVISIONS Article 1 In this Ministerial Decree, what is meant by: 1. Telecommunication provision is an activity of providing telecommunication supply and service enabling the provision of telecommunication; 2. Telecommunication provider is a provider of telecommunication network and/or provider of telecommunication service; 3. Operational expenditure/opex is an expenditure or budget cost to maintain sustainability of telecommunication
4 4 provision so that it may operate well within an accounting period; 4. Level of domestic component hereinafter called TKDN is the amount of domestic component of services or a combination of goods and services; 5. Domestic Component (KDN) is the use of telecommunication material/equipment and their supporting components, engineering having manufacture elements, fabrication, assembling, work settlement, and services provided domestically using consultants services, and domestic software; 6. Foreign Component (KLN) is the use of telecommunication material/equipment and their supporting components, engineering having manufacture elements, fabrication, work settlement, and services provided in foreign countries using consultants services and foreign software; 7. Self assessment of the level of domestic component (TKDN) of telecommunication provider is calculation of TKDN achievement in operational expenditure self-stated by telecommunication providers; 8. Telecommunication material/equipment is material/equipment to support telecommunication activities; 9. Independent survey institution is one appointed by the Government, in this case by the Ministry of Industry; 10. Authorized agency is an agency having the authority to issue inventory list of goods/services of domestic component; 11. Verification is an activity carried out by the Director General to check TKDN achievement self-assessed by telecommunication providers; 12. Minister is the Minister whose scope of work and responsibility is in the field of telecommunication; 13. Director General is the Director General of Post and Telecommunication; 14. Directorate General is the Directorate General of Post and Telecommunication.
5 5 CHAPTER II USE OF DOMESTIC COMPONENT Article 2 (1) Every telecommunication provider shall comply with TKDN operational expenditure/opex in accordance with the provision of prevailing regulations. (2) Operational expenditure/opex referred to in paragraph (1) excludes the procurement of land, building, office building rent, building maintenance, routine personnel salary, except for the rent of land and/or building, electrical consumption and maintenance used for transmission network, salary of personnel on contract (outsourcing), either related directly or indirectly to operation of telecommunication provision and service travel allowance related to operation. CHAPTER III LEVEL OF DOMESTIC COMPONENT Article 3 (1) The percentage of TKDN for operational expenditure/opex referred to in Article 2 is calculated based on: a. comparison between the total operational expenditure/opex deducted by operational expenditure/opex for foreign component against the total operational expenditure/opex; or b. comparison between the total operational expenditure/opex for domestic component against the total operational expenditure/opex. (2) The formula for TKDN operational expenditure/opex referred to in paragraph (1) is based on the following ratio: % TKDN (Opex) = (Total Opex Foreign Component) x 100% Total Opex or % TKDN (Opex) = Opex Domestic Component x 100% Total Opex
6 6 (3) Operational expenditure/opex referred to in paragraph (1) covers expenditure for : a. the cost of operation and maintenance; b. the cost of administration and general; c. the cost of marketing; d. the cost of other telecommunication (4) Format and formula for TKDN calculation referred to in paragraphs (2) and (3) are as follows: No Opex Component Opex Value Opex KDN Opex KLN % TKDN (a) (b) (c) (d) (e)=(c)/(b) or (b-d)/(b) 1 Cost of Operation and Maintenance b1 c1 d1 e1=c1/b1 or (b1-d1)/b1 2 Cost of Administration and General b2 c2 d2 e2=c2/b2 or (b2-d2)/b2 3 Cost of Marketing b3 c3 d3 e3=c3/b3 or (b3-d3)/b3 4 Cost of Other b4 c4 d4 e4=c4/b4 or Telecommunication (b4-d4)/b4 5 Total b=b1+ +b4 c=c1+ +c4 d=d1+ +d4 e= c/ b or ( b- d)/ b Article 4 (1) The amount of the value of operational expenditure/opex of domestic component in rupiah is calculated based on the following formula: Value of Opex of KDN = {value of obtainng Opex component } x % Opex of TKDN component (2) In the event that telecommunication Providers spend money for operational purposes using currency other than rupiah, such currency must be converted into rupiah calculation based on the rate of Bank Indonesia (BI) applicable at the time the spending is done. CHAPTER IV SELF ASSESSMENT AND VERIFICATION
7 7 Article 5 (1) Telecommunication providers shall do self assessment on achievement of TKDN operational expenditure/opex referred to in Article 3 paragraph (2) every year. (2) Self assessment on achievement of TKDN operational expenditure/opex referred to in paragraph (1) is carried out based on accountable data covering: a. data of one s own; b. data owned by vendor/consultant; and c. inventory list of goods/services of domestic component issued by authorized agency. (3) The component submitted on self assessment which is not based on accountable data referred to in paragraph (2) is declared as foreign component. Article 6 (1) The Director General may conduct verification on the truth of TKDN achievement based on self assessment by telecommunication providers. (2) The Director General in conducting verification referred to in paragraph (1) may: a. form a verification team and/or b. use an independent survey institution which is competent in its field and has obtained accreditation from the Government through beauty contest. (3) The verification referred to in paragraph (1) is carried out every year with post audit mechanism. (4) For the purpose of verification referred to in paragraph (1), telecommunication providers shall provide data to the verification team and/or to independent survey institution referred to in paragraph (2) which can prove the validity of self assessment by the telecommunication providers, among other things: a. proof of ownership of the company; b. detailed list of material need;
8 8 c. contract document; d. invoice; e. list of vendors; f. list of consultants; g. proof if nationality (particularly for foreign work force). CHAPTER V REPORTING Article 7 (1) Telecommunication providers shall report on the achievement of TKDN based on self assessment referred to in Article 3 paragraph (2) to the Director General at the latest three (3) months after the end of the current year. (2) The report on achievement of TKDN referred to in paragraph (1) is submitted in line with the reporting format and explanation on the reporting format indicated in inseparable Attachment I and Attachment II of this Ministerial Decree. (3) The report on achievement of TKDN referred to in paragraph (1) must be accompanied with a revenue stamp declaration letter that the report made is true and accurate and signed by President Director or other authorized official. CHAPTER VI SUPERVISION AND CONTROL Article 8 (1) Supervision and control on the implementation of this Ministerial Decree are conducted by the Director General. (2) In conducting supervision and control referred to in paragraph (1), the Director General may form a Team with the task of conducting supervision and control on the implementation of the procedure of evaluating the achievement of TKDN in the telecommunication provision.
9 9 CHAPTER VII SANCTION Article 9 Every telecommunication provider that does not fulfil the achievement of TKDN is given administrative sanction in the form of fine and/or abrogation of the license for the provision of telecommunication in accordance with the provision of prevailing regulations. CHAPTER VIII FINAL PROVISION Article 10 This Ministerial Decree shall come into force on the date of its ratification. In order to make known to every body, instruct the promulgation of this Ministerial Decree in the State Announcement of the Republic of Indonesia. Done at: JAKARTA On : September 24, 2010 MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY, Signed TIFATUL SEMBIRING Promulgated at: On:.. Jakarta MINISTER OF LAW AND HUMAN RIGHTS PATRIALIS AKBAR STATE ANNOUNCEMENT OF THE REPUBLIC OF INDONESIA YEAR 2010 NUMBER:
10 10 ATTACHMENT I : DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER : 14/PER/M.KOMINFO/09/2010 DATE : 24 September 2010 REPORTING FORMAT OF ACHIEVEMENT ON THE LEVEL DOMESTIC COMPONENT OF OPERATIONAL EXPENDITURE/OPEX IN TELECOMMUNICATION PROVISION No Opex Component Opex Value Opex KDN Opex KLN % TKDN (a) (b) (c) (d) (e)=(c)/(b) or (b-d)/(b) 1 Cost of Operation and Maintenance b1 c1 d1 e1=c1/b1 or (b1-d1)/b1 2 Cost of Administration and General b2 c2 d2 e2=c2/b2 or (b2-d2)/b2 3 Cost of Marketing b3 c3 d3 e3=c3/b3 or (b3-d3)/b3 4 Cost of Other b4 c4 d4 e4=c4/b4 or Telecommunication (b4-d4)/b4 5 Total b=b1+ +b4 c=c1+ +c4 d=d1+ +d4 e= c/ b or ( b- d)/ b (place).(date and month).20 Signature on revenue stamp of Rp PRESIDENT DIRECTOR OF PT MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY Signed TIFATUL SEMBIRING
11 11 ATTACHMENT II : DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER : 14/PER/M.KOMINFO/09/2010 DATE : 24 September 2010 EXPLANATION ON REPORTING FORMAT OF THE EVALUATION OF ACHIEVEMENT ON THE LEVEL OF DOMESTIC COMPONENT OF OPERATIONAL EXPENDITURE/OPEX FOR TELECOMMUNICATION PROVISION Criteria of Domestic Component 1. Operational and Maintenance Cost, among other things: a) Maintenance and Repair, including spare parts; b) Power and Cooling Energy for Base Station; c) Floor Space, Network/link Transmission, and Tower Rental; 2. Administration and General Cost, among other things: a) Office equipment and furniture Rental; b) Consultants Honorarium; c) Insurance; d) Travel and Transportation Allowance (outside travel pocket money); e) Security and Cleaning Service; f) Training and Recruitment; g) Representation and Entertainment; h) Tax and Retribution; i) Courier and Printing; j) Equipment cost and other overheads; k) Utility (Electricity, Water, Solar, etc.); l) Billing. 3. Marketing Cost, among other things: a) Advertising; b) Promotion; c) Customer Loyalty Program; d) Other Marketing cost. 4. Other Telecommunication Cost, among other things: a) Charges for the Right to Use radio frequency spectrum (Licensing Fee for radio frequency spectrum); b) Charges for the Right to provide Telecommunication (Licensing Fee for Telecommunication Provision); c) Charges for Contribution of Universal Telecommunication Service Obligation; d) Cost Price of SIM Card and Voucher; e) Technicians/Skills Outsource. MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY, Signed TIFATUL SEMBIRING
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