MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

COPY REGULATION OF THE OF FINANCE THE REPUBLIC OF INDONESIA NUMBER 149 / PMK.011 / 2014

ON

INCOME BORNE BY GOVERNMENT OVER INTEREST OR COMPENSATION OF GOVERNMENT SECURITIES ISSUED IN INTERNATIONAL MARKETS AND THIRD PARTY INCOME ON THE SERVICE PROVIDED TO THE GOVERNMENT ON THE ISSUANCE AND / OR BUY BACK / EXCHANGE OF GOVERNMENT SECURITIES IN INTERNATIONAL MARKET IN FISCAL YEAR 2014

BY THE GRACE OF GOD ALMIGHTY THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Considering : a. that based on the provisions in Law No. 23 of 2013 on the State Budget for Fiscal Year 2014, it has available a budget ceiling for Income Tax subsidy borne by the Government over the interest or compensation of government securities issued in the international market and third-party income for services provided to the Government in the issuance and / or buy back / exchange of government securities in the international market; b. that based on the considerations as referred to in paragraph a, and in order to implement the provisions of Article 14, paragraph (12) of Law No. 23 of 2013 on the State Budget for Fiscal Year 2014, it is necessary to stipulate the Minister of Finance Regulation on Income Tax Borne by the Government over Interest or Compensation of Government Securities Issued in International Market for Services Provided to the Government in the Issuance and / or Buy Back / Exchange of Government Securities in the International Market in Fiscal Year 2014

Given : 1. Law No. 24 of 2002 on Government Securities (State Gazette of the Republic of Indonesia Year 2002 Number 110, Supplement to State Gazette of the Republic of Indonesia Number 4236); 2. Law No. 17 of 2003 on (State

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Gazette of The Republic of Indonesia Year 2003 Number 47, Supplement State Gazette of to the Republic of Indonesia Number 4286); 3. Law Number 19 Year 2008 on Sharia Securities (State Gazette of the Republic of Indonesia Year 2008 Number 70, Supplement to State Gazette of the Republic of Indonesia Number 4852); 4. Law No. 23 of 2013 on the State Budget for Fiscal Year 2014 (State Gazette of the Republic of Indonesia Year 2013 Number 182, Supplement to State Gazette of the Republic of Indonesia Number 5462); 5. the Minister of Finance Regulation No. 228 / PMK.05 / 2010 on Implementation and Accountability Mechanism for Borne by Government as amended by the Minister of Finance Regulation No. 237 / PMK.05 / 2011; 6. the Minister of Finance Regulation No. 236 / PMK.08 / 2012 on Buy Back of Government Securities in Foreign Currency in International Market;

HAS DECIDED:

Stipulate : THE FINANCE MINISTER REGULATION INCOME TAX BORNE BY GOVERNMENT OVER INTEREST OR COMPENSATION OF GOVERNMENT SECURITIES ISSUED IN INTERNATIONAL MARKETS AND THIRD PARTY INCOME ON THE SERVICE PROVIDED TO THE GOVERNMENT ON THE ISSUANCE AND / OR BUY BACK / EXCHANFE OF GOVERNMENT SECURITIES IN INTERNATIONAL MARKET IN FISCAL YEAR 2014

Article 1

(1) Income tax payable on income over the interest or compensation of government securities issued in the international market was borne by the Government. (2) Income tax payable over the third party income for services provided to the Government in the issuance and / or buy back / exchange offer of

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

government securities in the international market was borne by the Government. (3) The issuance in the international market as referred to in paragraph (1) and (2) is the activities of the offer and sale of government securities denominated in foreign currencies in countries outside the territory of Indonesia. (4) Buy back / exchange of government securities in the international market as referred to in paragraph (2) is the activities of buy back / exchange of government securities denominated in foreign currencies in the international market by the Government prior to maturity in cash buyback and / or by exchange offer. (5) Government securities as referred to in paragraph (1) and paragraph (2) consist of: a. Government securities, namely securities in the form of promissory debt in foreign currency that are guaranteed payment of its interest and principal by the Republic of Indonesia in accordance with its validity period, in accordance with Law No. 24 of 2002 on Government Securities; and b. State shariah bond or state sukuk is goverment securities issued based on shariah principles, as evidence for the inclusion of assets of the state shariah bond, in foreign currency, in accordance with Law No. 19 Year 2008 on State Sharia Bond. (6) Income in the form of interest or compensation of government securities as referred to in paragraph (1), include the discount of government securities issued in the international market. (7) The third party as referred to in paragraph (2) is a third party providing services to the government in order to issue and / or buy back / exchange of government securities in the international market, among others, realtors, buyers / exchange agent, stock exchange outside country, fiscal agent, paying agent, rating agencies, and international law consultant excluding local legal counsel. (8) Income derived from the third party as referred to in paragraph (2) is in the form of fees for services such

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

third party and payment of the costs incurred in the implementation of the issuance and / or buy back / exchange of government securities in the international market.

Article 2

(1) Income Tax as referred to in Article 1 (1) and (2) an is subsidy expenditure of Income Tax borne by the government as defined in the Minister of Finance Regulation on implementation and accountability mechanism for tax borne by the Government. (2) Income Tax Subsidy borne by the Government as referred to in paragraph (1) is given a budget ceiling as stipulated in Law No. 23 of 2013 on the State Budget for Fiscal Year 2014 and its amendments.

Article 3

(1) The Minister of Finance as State General Treasurer as the Budget User of Budget Part of State General Treasurer stipulated Director General of Taxes cq Director of Compliance and Revenue Potential as Proxy of Budget User to implement the payment of income tax subsidy borne by the Government. (2) The Director General of Taxes c.q. Director of Compliance and Revenue Potential as Proxy of Budget User ordered the Commitment-Maker Officer and Payment Signatory Instruction Signatory Officer to their respective duties to: a. make a Payment Request Letter of subsidy expenditures realization of Income Tax borne by the Government; b. make the Payment Instruction; and c. submit Payment Instruction to the State Treasury Office, Directorate General of Treasury, to obtain Fund Disbursement Order as the implementation of the expenditure State Budget for the income tax subsidy borne by the Government.

Article 4

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MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Reporting and accountability of Income Tax borne by the Government over interest or compensation of government securities issued in international market for services provided to the government in the issuance and / or buy back / exchange of government securities in the international market in Fiscal Year 2014 is conducted by the Head Office of Directorate General of Taxes cq Director of Compliance and Revenue Potential as the Accounting Unit of Proxy Budget User on tax subsidy expenditure borne by the Government according to the Minister of Finance Regulation on implementation and accountability mechanism for tax borne by the Government.

Article 5

This Ministerial Regulation comes into force on January 1, 2014 until the date of December 31, 2014.

For public cognizance, this Ministerial Regulation shall be promulgated and published in the State Gazette of the Republic of Indonesia.

Enacted in Jakarta on July 15, 2014 MINISTER OF FINANCE THE REPUBLIC OF INDONESIA,

Signed

MUHAMAD CHATIB BASRI

Promulgated in Jakarta on July 15, 2014 MINISTER OF JUSTICE AND HUMAN RIGHTS THE REPUBLIC OF INDONESIA,

Signed

AMIR SYAMSUDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2014 NUMBER 983

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