+----------------------------------------------+-----------------------+
| **[World Trade]{.smallcaps}**                |                       |
|                                              |                       |
| **[Organization]{.smallcaps}**               |                       |
+----------------------------------------------+-----------------------+
|                                              |                       |
+----------------------------------------------+-----------------------+
|                                              | **G/A                 |
|                                              | DP/N/1/IDN/2/Suppl.1\ |
|                                              | G/SC                  |
|                                              | M/N/1/IDN/2/Suppl.1** |
|                                              |                       |
|                                              | 26 March 1999         |
+----------------------------------------------+-----------------------+
|                                              | (99-1235)             |
+----------------------------------------------+-----------------------+
|                                              |                       |
+----------------------------------------------+-----------------------+
| **Committee on Anti-Dumping Practices**      | Original: English     |
|                                              |                       |
| **Committee on Subsidies and Countervailing  |                       |
| Measures**                                   |                       |
+----------------------------------------------+-----------------------+

NOTIFICATION OF LAWS AND REGULATIONS

UNDER ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS

INDONESIA

[Supplement]{.underline}

The following communication, dated 22 January 1999, has been received
from the Permanent Mission of Indonesia.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

In order to implement Article 13 of the Agreement on Implementation of
Article VI of the GATT 1994 (Agreement on Anti-Dumping) regarding
\"Judicial Review\", I wish to inform you that based on Law No. 17/1997
dated 23 May 1997 and Presidential Decree No. 41/1997 dated
7 October 1997, Indonesia has established a Tax Dispute Settlement Board
as a Judicial Review Body for settlement of tax disputes. Please find,
attached, the above-mentioned Law and Presidential Decree.

**THE AGENCY FOR THE SETTLEMENT OF TAX DISPUTES**

**(Law No. 17/1997 dated 23 May 1997)**

BY THE GRACE OF GOD THE ALMIGHTY

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

[Considering]{.underline}:

\(a\) That the State of the Republic of Indonesia is a law-based state
based on Pancasila and the Constitution of 1945 which aims to translate
into reality the life order of the state and the nation characterized by
justice, prosperity, security, peace and order and to guarantee an equal
legal position of all citizens;

\(b\) that to achieve the said goal, national development implemented
sustainably, continuously and equitably across the country requires huge
funds which must be obtained particularly from our own sources;

\(c\) that in the framework of the said principle of independence, tax
receipts as the main financial source for the state and national
development requires increased participation of the community in
fulfilling their tax obligations as state-related obligations;

\(d\) that enhancement of the awareness, understanding and comprehension
in taxation has reached all layers of the community in fulfilling their
tax obligations pursuant to the tax laws with the result that the number
of taxpayers has continued to increase;

\(e\) that with the increase in the number of taxpayers and the
enhancement of the right and obligation in the enforcement of tax laws,
tax disputes shall be unavoidable and they must be settled justly under
a speedy, cheap and simple procedure and process;

\(f\) that the Tax Advisory Council established on the basis of
*Regeling van het Beroep in Belastingzaken* (Statute Book No. 29/1927)
as already amended the latest Law No. 5/1959 (Statute Book No. 13/1959,
Supplement to Statute Book No. 1748), which serves as an institution for
the settlement of appeal cases in taxation, is no longer compatible with
the need in the settlement of tax disputes;

\(g\) that on the basis of the considerations referred to in letters
(a), (b), (c), (d), (e) and (f), it is deemed necessary to set up a tax
judicature agency under the name of the Agency for the Settlement of Tax
Disputes by virtue of a law.

In view of:

1\. Article 5 sub-article (1) and Article 20 sub-article (1) of the
Constitution of 1945;

2\. Law No. 6/1983 on the general provisions on and the procedure for
taxation (Statute Book No. 49/1983, Supplement to Statute Book No.
3282), as already amended by Law No. 9/1994 (Statute Book No. 59/1994,
Supplement to Statute Book No. 3566).

With the Approval of

THE HOUSE OF PEOPLE\'S REPRESENTATIVES OF

THE REPUBLIC OF INDONESIA

D E C I D E S

To stipulate:

THE LAW ON THE AGENCY FOR THE SETTLEMENT OF TAX DISPUTES

CHAPTER I

GENERAL PROVISIONS

First Part

Definition

Article 1

Referred to in this law as:

1\. An authorized official shall be the Director General of Taxation,
the Director General of Customs and Excise, the governor/head of a
first-level region, a district head or a municipality head/head of a
second-level region, or an official appointed to enforce the tax laws;

2\. Taxes shall be all kinds of taxes collected by the central
government, including import duties and excise, and the taxes collected
by regional administrations, pursuant to the prevailing laws;

3\. Tax laws shall be all regulations in taxation;

4\. A decision shall be written stipulation in taxation issued by an
authorized official on the basis of and in the framework of tax laws
enforcement;

5\. A tax dispute shall be a dispute to which, pursuant to the tax laws
concerned, an appeal or a lawsuit may be filed to the Agency for the
Settlement of Tax Disputes;

6\. An appeal shall be a legal attempt regarding the decision made by an
authorized official as far as it is regulated in the tax laws concerned.

7\. A lawsuit shall be a legal attempt regarding the implementation of
tax collection as regulated in the tax laws concerned;

8\. A letter of appeal description shall be a letter by the party to
which an appeal is addressed to the Agency for the Settlement of Tax
Disputes containing a reply to the reasons of the litigant;

9\. A letter of response shall be a letter from a sued party to the
Agency for the Settlement of Tax Disputes containing a reply to the
reasons of the lawsuit filed by the lawsuit applicant;

10\. A letter of denial shall be a letter from an appellant or a
litigant to the Agency for the Settlement of Tax Disputes containing a
denial of the letter of appeal description or the letter of response;

11\. The date of dispatch shall be the post-marked date of dispatch, the
facsimile date or, in the event of delivery by hand, the date when a
letter of a decision or a ruling is presented by hand;

12\. The date of receipt shall be the post-marked date of dispatch, the
facsimile date, or in the event of delivery by hand, the date when a
letter or a decision or a ruling is received personally;

13\. The chairperson, deputy chairperson and members shall be the
chairperson, deputy chairperson and members of the Agency for the
Settlement of Tax Disputes;

14\. A single member shall be a member appointed by the chairperson to
examine and make a decision on a tax dispute speedily;

15\. A session member shall be a single member or a member in a council,
including the chairman of the session;

16\. The chairman of a session shall be a member of the session
appointed by the chairperson to chair the session;

17\. The secretary, the vice secretary and the alternate secretary shall
be the secretary, the vice secretary and the alternate secretary in the
Agency for the Settlement of Tax Disputes;

18\. The secretary of a session shall be the secretary, the vice
secretary or the alternate secretary assigned to provide services in the
administration of the settlement of a tax dispute in a particular
session;

19\. The Minister shall be the Minister of Finance of the Republic of
Indonesia.

Second Part

Position

Article 2

The Agency for the Settlement of Tax Disputes shall be a tax judicature
agency as referred to in Law No. 6/1985 on general provisions on and the
procedure for taxation as already amended by Law No. 9/1994

Third Part

Domicile

Article 3

\(1\) By virtue of this law, the Agency for the Settlement of Tax
Disputes is established with the domicile in the state\'s capital and if
deemed necessary, it is possible to set up the Agency for the Settlement
of Tax Disputes of the same level at another place.

\(2\) The implementation of the establishment of the Agency for the
Settlement of Tax Disputes as referred to in sub-article (1) shall be
regulated in a presidential decree.

Article 4

A session of the Agency for the Settlement of Tax Disputes shall be
conducted at the domicile of the Agency or at another place within its
jurisdiction.

Fourth Part

Fostering

Article 5

\(1\) Fostering of the organization, administration and finance of the
Agency for the Settlement of Tax Disputes shall be conducted by the
Ministry of Finance.

\(2\) The fostering as meant in sub-article (1) shall not reduce the
freedom of the member in examining and passing a ruling on a tax
dispute.

CHAPTER II

THE COMPOSITION OF

THE AGENCY FOR THE SETTLEMENT OF TAX DISPUTES

First Part

General

Article 6

The composition of the Agency for the Settlement of Tax Disputes shall
be made up of the leadership, the members and the secretary.

Article 7

The leadership of the Agency for the Settlement of Tax Disputes shall be
made up of a chairperson and one or more chairperson deputies.

Article 8

To be able to be appointed as a member, every candidate must fulfill the
following requirements:

\(a\) an Indonesian citizen aged at least 40 (forty) years;

\(b\) having faith in God the Almighty;

\(c\) loyal to Pancasila and the Constitution of 1945;

\(d\) not being a former member of the banned Indonesian Communist
Party, including that of its mass organizations or not being one
directly or indirectly involved in the \"Counter-Revolutionary Movement
of G.30.S/PKI\" or other banned organization;

\(e\) having expertise in taxation and having a university diploma in
law or in other areas;

\(f\) commanding respect, honest, fair and having a good conduct;

\(g\) never committing a criminal offence in taxation.

Second Part

Chairperson, chairperson deputies and members

Article 9

\(1\) Members shall be appointed by the President and selected from a
list of candidate names proposed by the Minister.

\(2\) The chairperson and chairperson deputies shall be appointed by the
President and selected from the members as meant in sub-article (1)

Article 10

The chairperson, chairperson deputies and members shall be appointed
from a term of office of 5 (five) years and this appointment can be
extended for 1 (one) term of office.

Article 11

\(1\) Prior to assuming his position, the chairperson, chairperson
deputies and members shall be obligated to say an oath or a pledge in
accordance with their religion or belief, reading as follows:

> \"I earnestly take an oath/make a pledge that I, to assume this
> position, directly or indirectly, under whatever name or in whatever
> manner, will not give or promise anything to anybody.\"
>
> \"I take an oath/make a pledge that I, to do or not to do something in
> this position, will never receive, directly or indirectly, any promise
> or gift from anybody.\"
>
> \"I take an oath/make a pledge that I will be loyal to and will defend
> and apply Pancasila as the nation\'s view of life and the state\'s
> foundation and ideology, the Constitution of 1945, and all laws and
> other regulations prevailing in the State of the Republic of
> Indonesia.\"
>
> \"I take an oath/make a pledge that I will always do my job in this
> position honestly, conscientiously and will not discriminate people in
> performing my obligations and will do my job in the best and most just
> manner as possible as benefitting a chairperson, chairperson deputies
> or members of the Agency for the Settlement of Tax Disputes with good
> character and honesty in enforcing the law and justice.\"

\(2\) The chairperson and chairperson deputies shall take the oath or
make the pledge before the chairman of the Supreme Court.

\(3\) The members shall take the oath or make the pledge before the
chairperson.

Article 12

\(1\) The chairperson shall foster the Agency for the Settlement for Tax
Disputes and supervise the implementation of the tasks and the conduct
of the chairperson deputies, the members and the secretary.

\(2\) In addition to the tasks as meant in sub-article (1), the
chairperson shall supervise the way a tax dispute is settled and make
sure that the implementation of the settlement shall be conscientious
and proper.

\(3\) In undertaking fostering and supervision as meant in sub-articles
(1) and (2), the chairperson can give a directive, a warning and a
reminder, if deemed necessary, and present a proposal to the authorities
that an action should be taken.

\(4\) The fostering and the supervision as meant in sub-articles (1),
(2) and (3) shall not reduce the freedom of the members in examining and
passing a ruling on a tax dispute.

Article 13

\(1\) Members shall not be allowed to concurrently assume the following
positions:

\(a\) the executor of a ruling of the Agency for the Settlement of Tax
Disputes;

\(b\) a guardian, or an official related with a tax dispute which shall
be or is being examined by him;

\(c\) a legal counsellor;

\(d\) a tax consultant:

\(e\) a public accountant; or

\(f\) an entrepreneur.

\(2\) In addition to the positions as meant in sub-article (1), other
positions which a member shall not be allowed to concurrently assume,
shall be further regulated in a government regulation

Article 14

\(1\) The chairperson, chairperson deputies and members shall be
honourably discharged from their positions by the President at the
suggestion of the Minister because of:

\(a\) their own request;

\(b\) a continuous physical or mental illness;

\(c\) reaching age of 65 (sixty-five) years; or

\(d\) being negligent in or incapable of conducting their tasks.

\(2\) The chairperson, chairperson deputies and members whose term of
office has expired or who pass away shall be automatically discharged
honourably from their positions.

Article 15

The chairperson, chairperson deputies and members shall be discharged
with dishonour from their positions by the President at the suggestion
of the Minister because of the following reasons:

\(a\) committing a shameful act;

\(b\) neglecting obligations in performing their tasks;

\(c\) violating the official oath or pledge; or

\(d\) violating the prohibitions as meant in Article 13.

Article 16

The proposal for honourable discharge as meant in Article 14 sub-article
(1) letter (d) and the proposal for discharge with dishonour as meant in
Article 15 letters (b), (c), (d) and (e), shall be put forward after the
person concerned has allowed enough opportunity to defend himself before
the Council of Honour of the Agency for the Settlement of Tax Disputes.

Article 17

The establishment, composition and working system of the Council of
Honour of the Agency for the Settlement of Tax Disputes shall be
stipulated by the Minister.

Article 18

\(1\) Prior to their discharge with dishonour as meant in Article 15,
the chairperson, chairperson deputies and members may be relieved of
their positions by the Minister at the suggestion of the council of
Honour of the Agency for the Settlement of Tax Disputes.

\(2\) The proposal for the relief of position as meant in sub-article
(1) shall also be subject to the application of the stipulation for the
self-defence as meant in Article 16.

Article 19

\(1\) If an arrest warrant followed by detention is issued against the
chairperson, chairperson deputies or members, the chairperson,
chairperson deputies or members concerned shall be relieved from their
positions by the Minister.

\(2\) If the chairperson, chairperson deputies or members are subject to
a lawsuit before a court of law in a criminal case without their being
detained, the said chairperson, chairperson deputies or members may be
relieved from their positions by the Minister.

Article 20

\(1\) If in an examination of the chairperson, chairperson deputies or
members who are arrested and detained as meant in Article 19 sub-article
(1) proves that they are not guilty of committing a criminal act, the
said chairperson, chairperson deputies or members may be reinstated in
their former positions

\(2\) If the criminal charges against the chairperson- chairperson
deputies or members as meant in Article 19 sub-article (2) fail to be
proved on the basis of a ruling of a court of law with a permanent legal
force, the said chairperson, chairperson deputies or members may be
reinstated in their former positions.

Article 21

\(1\) The chairperson, chairperson deputies or members may be arrested
and or detained only at the instruction of the Attorney General after
the approval of the Minister has been obtained, except in the following
cases:

\(a\) being caught in the act when committing a criminal offence; or

\(b\) on the basis of a sufficient preliminary evidence, being suspected
of committing a criminal offence threatened with a death penalty, or a
criminal act against the state\'s security.

\(2\) The implementation of the arrest or detention as meant in
sub-article (1) letters (a) and (b) must within 2 (two) times 24
(twenty-four) hours at the latest be reported to the Minister.

Article 22

Further provisions on the procedure for relief from duties, honourable
discharge and discharge with dishonour and the rights of the
chairperson, chairperson deputies or members who are relieved of their
duties or discharged shall be regulated in a government regulation.

Third Part

Secretary

Article 23

\(1\) The secretary shall head the secretariat, which is assigned the
task of providing services in the administration of the settlement of
tax disputes and the general administration, and shall be assisted by a
deputy secretary.

\(2\) In implementing the task of providing services in the
administration of the settlement of tax disputes, the secretary shall be
assisted by one or more alternate secretary(ies).

Article 24

Prior to assuming their positions, the secretary, deputy secretary and
alternate secretaries shall be obligated to take an oath or make a
pledge before the chairman in accordance with their religion or belief,
reading as follows:

> \"I earnestly take an oath/make a pledge that, in assuming this
> position, directly or indirectly, under whatever name or in whatever
> manner, will not give or promise anything to anybody.\"
>
> \"I take an oath/make a pledge that I will be loyal to, adhere to and
> defend and apply Pancasila as the nation\'s life view and the state\'s
> foundation and ideology, the Constitution of 1945, and all other laws
> and regulations prevailing in the State of the Republic of
> Indonesia.\"
>
> \"I take an oath/make a pledge that I will comply with all prevailing
> laws and implement the official assignments entrusted to me with full
> dedication, awareness and responsibility.\"
>
> \"I take an oath/make a pledge that I will always uphold the honour of
> the state and the government and the dignity of the secretary or
> deputy secretary or the alternate secretaries of the Agency for the
> Settlement of Tax Disputes, and will always prioritize the interest of
> the state above individual or group interests.\"
>
> \"I take and oath/make a pledge that I, in order to do or not to do
> something in this position, will never receive, directly or
> indirectly, receive a promise or a gift from anybody.\"
>
> \"I taken and oath/make a pledge that I will keep confidential a
> secret which by its nature or in accordance with an instruction must
> be kept confidential.\"
>
> \"I take and oath/make a pledge that I will always do my job in this
> position honestly and conscientiously and will not discriminate people
> in performing my obligations and will do everything in the best and
> most just manner in enforcing the law and justice.\"

Article 25

\(1\) The secretary, deputy secretary, alternate secretaries and
employees of the secretariat of the Agency for the Settlement of Tax
Disputes shall be civilian civil servants within the Ministry of
Finance.

\(2\) Other than the requirements as meant in sub-article (1), the
secretary, deputy secretary and alternate secretaries must have
expertise in taxation and have a university diploma in laws and in other
areas.

Article 26

The tasks and the responsibility as well as the organizational structure
of the Agency for the settlement of Tax Disputes shall be stipulated in
a presidential decree.

Article 27

The working system of the secretariat of the Agency for the Settlement
of Tax Disputes shall be stipulated by the chairperson.

CHAPTER III

THE POWER OF

THE AGENCY FOR THE SETTLEMENT OF TAX DISPUTES

Article 28

\(1\) The Agency for the Settlement of Tax Disputes shall have the tasks
and the authority to examine and pass a ruling on a tax dispute.

\(2\) The tasks and the authority of the Agency for the Settlement of
Tax Disputes as meant in sub-article (1) shall be beyond the tasks and
the authority of a public court and a state\'s administrative court.

Article 29

In addition to the tasks and the authority as meant in Article 28, the
Agency for the Settlement of Tax Disputes shall exercise control over
proxies providing legal aid to the disputing parties in the session of
the Agency for the Settlement of Tax Disputes.

Article 30

For the purpose of settling a tax dispute the Agency for the Settlement
of Tax Disputes may summon a third party or request data and or
information related with tax disputes from the third party pursuant to
the prevailing laws.

CHAPTER IV

PROCEDURAL LAW

First Part

Legal Proxies

Article 31

\(1\) The disputing parties can each be accompanied or represented by
one or more legal proxies with a written power of attorney.

\(2\) To be able to serve as a legal proxy the following requirements
must be fulfilled:

\(a\) an Indonesian citizen;

\(b\) having expertise in taxation; and

\(c\) other requirements stipulated by the chairperson.

\(3\) In the event that the person accompanying or representing an
appellant or a litigant is one of the same family line up to the second
remove, a member of the executive board, an employee or a guardian, the
requirements as meant in sub-article (2) shall not be needed.

Second Part

Appeal

Article 32

\(1\) An appeal shall be filed in a letter of appeal in the Indonesian
language to the Agency for the Settlement of Tax Disputes whose
jurisdiction shall encompass the working area of the official issuing
the decision against which an appeal has been filed.

\(2\) An appeal shall be filed within the period as regulated in the tax
laws concerned and in the event that the said period is not regulated,
the appeal shall be filed within a period of 3 (three) months as from
the date of receipt of the decision against which an appeal has been
filed.

\(3\) The period of time as meant in sub-article (1) shall not be
binding if according to the Agency for the Settlement of Tax Disputes
the said period of time cannot be fulfilled because of circumstances
beyond the power of the appellant.

Article 33

\(1\) A letter of appeal can be filed to one decision.

\(2\) The appeal shall be filed along with its clear reasons and the
date of receipt of the decision against which the appeal has been filed
must be mentioned.

\(3\) A copy of the decision against which an appeal has been made must
be attached to the letter of appeal.

Article 34

Other than the requirements as meant in Article 33 and in the event that
the appeal is filed against the amount of the outstanding tax the appeal
can be filed only if the said amount of outstanding tax has been fully
paid.

Article 35

\(1\) An appeal shall be filed by the taxpayer himself, his heir, a
member of the executive board or his legal proxy.

\(2\) If during an appeal process, the appellant dies, the appeal may be
continued by his heir, the legal proxy of his heir or his guardian, in
the event that the appellant has gone bankrupt.

\(3\) If during an appeal process, the appellant undertakes business
merger, amalgamation, splitting or diversification, or liquidation, the
said application may be continued by the parties receiving the
responsibility owing to the said business merger, amalgamation,
splitting or diversification, or owing to the said liquidation.

Article 36

An appellant may complete his appeal to fulfil the prevailing provisions
as long as this is still within the period of time as meant in Article
32 sub-article (2).

Article 37

\(1\) With respect to an appeal, a statement of revocation may be
addressed to the Agency for the Settlement of Tax Disputes.

\(2\) A revoked appeal as meant in sub-article (1) may be removed from
the list of disputes through an examination with a speedy procedure.

Third Part

Lawsuits

Article 38

\(1\) A lawsuit shall be filed in a letter of lawsuit in the Indonesian
language to the Agency for the Settlement of Tax Disputes whose
jurisdiction encompasses the working area of the official issuing the
decision sued within a period of 14 (fourteen) days as from the date of
receipt of the decision subjected to the lawsuit.

\(2\) The period of time as meant in sub-article (1) shall not be
binding if according to the Agency for the Settlement of Tax Disputes
the said period of time cannot be fulfilled because of circumstances
beyond the power of the litigant.

Article 39

\(1\) A lawsuit shall be filed by the litigant himself along with its
clear reasons, mentioning the date of the receipt of the decision
subjected to the lawsuit and attaching to it a copy of the document the
implementation of which is subjected to the lawsuit.

\(2\) If during a lawsuit process, the litigant dies, the lawsuit may be
continued by his heir, the legal proxy of his heir, or his guardian, in
the event that the litigant has become bankrupt.

Article 40

\(1\) As for the lawsuit as meant in Article 38 sub-article (1), a
statement of revocation may be addressed to the Agency for the
Settlement of Tax Disputes.

\(2\) A revoked lawsuit as meant in sub-article (1) shall be removed
from the list of disputes through an examination with a speedy
procedure.

Article 41

\(1\) A litigant must pay a registration fee of Rp 1,000,000.00 (one
million rupiah).

\(2\) Changes in the amount of the registration fee as meant in
sub-article (1) shall be stipulated by the Minister.

Article 42

The registration fee as meant in Article 41 sub-article (1) shall be
deposited at the state\'s cash before the lawsuit is filed and the
evidence of the deposit must be attached to the letter of lawsuit.

Fourth Part

Session Preparation

Article 43

\(1\) The Agency for the Settlement of Tax Disputes shall ask for a
letter of appeal description or a letter of response against a letter of
appeal or a letter of lawsuit to the party subjected to an appeal or a
sued party within a period of 14 (fourteen) days as from the date of
receipt of the letter of appeal or the letter of lawsuit.

\(2\) In the event that the appellant sends a supplementary letter of
document to the Agency for the Settlement of Tax Disputes as meant in
Article 36, the period of 14 (fourteen) days as meant in sub-article (1)
shall begin as from the date of receipt of the said supplementary letter
or document.

Article 44

\(1\) The party subjected to an appeal or the sued party shall present a
letter of appeal description or a letter of response to the Agency for
the Settlement of Tax Disputes within 3 (three) months as from the date
of dispatch of the request for the letter of appeal description or the
letter of response as meant in Article 43.

\(2\) A copy of the letter of appeal description or the letter of
response as meant in sub-article (1) by the Agency for the Settlement of
Tax Disputes shall be sent to the appellant or the litigant within a
period of 14 (fourteen) days as from the date of receipt.

\(3\) The appellant or the litigant may present a letter of denial to
the Agency for the Settlement of Tax Disputes within a period of 30
(thirty) days as from the receipt of the letter of appeal description or
the letter of response as meant in sub-article (2).

\(4\) If the party subjected to an appeal or the sued party, or the
appellant or the litigant does not fulfill the provision as meant in
sub-article (1) or sub-article (3), the Agency for the Settlement of Tax
Disputes shall proceed with the examination of the appeal or the
lawsuit.

Article 45

An appellant or a litigant may notify the chairman to be present in a
session in order to give information orally.

Article 46

\(1\) The chairperson shall appoint a council comprising 3 (three)
members, or appoint a single member, to examine and pass a ruling on a
tax dispute.

\(2\) In the event of the examination being conducted by the council,
the chairperson shall appoint one of the members as meant in sub-article
(1) to assume the position of the chairperson of the session that shall
lead the examination of the tax dispute.

\(3\) If there are at least two tax disputes for the same fiscal year
filed by the same appellant, the chairperson shall appoint the same
council or appoint the same single member to examine and pass a ruling
on the said dispute.

\(4\) The council or the single member as meant in sub-article (1) shall
hold a session on a set date and notify the said session day to the
disputing parties.

Article 47

The council as meant in Article 46 shall already begin the session
within a period of 6 (six) months as from the date of receipt of the
letter of appeal or the letter of lawsuit.

Fifth Part

Examination with an Ordinary Procedure

Article 48

An examination with an ordinary procedure shall be conducted by a
council.

Article 49

\(1\) For examination purposes, the chairperson of the session shall
convene the session and declare it closed to the public.

\(2\) Prior to the commencement of the examination of the core problem
of the dispute, the council shall conduct an examination of the
completeness and or the clarity of the appeal or the lawsuit.

\(3\) If the appeal or the lawsuit fails to meet the requirement for
completeness or clarity as meant in sub-article (2), the said
completeness or clarity may be provided during the session as long as
the requirements as meant in Article 32 sub-article (1), Article 33
sub-article (1), Article 34, Article 38 sub-article (1) or Article 41
sub-article (1) have been fulfilled.

Article 50

\(1\) A session member or a session secretary shall be obligated to
withdraw from a session if s(he) has a family relationship up to the
third remove, or a marital relationship, in spite of a divorce, with one
of the members of the session or the secretary of the session in the
same council.

\(2\) A session member or a session secretary shall be obligated to
withdraw from a session if s(he) has a family relationship up to the
third remove, or a marital relationship, in spite of a divorce, with an
appellant or a litigant or his legal proxy.

\(3\) The session member or the session secretary as meant in
sub-articles (1) and (2) must be replaced, and if s(he) is not replaced
or does not withdraw while a ruling has been passed on the dispute, the
said ruling shall be invalid and the chairperson shall instruct that the
said dispute should be immediately examined in a session with a council
of a different composition or a different session secretary, unless the
said ruling has exceeded a period of 1 (one) year.

\(4\) In the event that the family relationship, or the marital
relationship as meant in sub-articles (1) and (2) becomes known before
the passage of a period of 1 (one) year after a ruling has been passed
on the dispute as meant in sub-article (3), the said dispute shall be
examined again in another session within a period of 3 (three) months as
from the time when the said relationship becomes known.

Article 51

\(1\) A session member or a session secretary shall be obligated to
withdraw from a session if s(he) has a direct or indirect interest in a
dispute s(he) handles.

\(2\) The withdrawal as meant in sub-article (1) may be conducted at the
request of one or all of the disputing parties.

\(3\) The chairperson shall stipulate the withdrawal as meant in
sub-article (1) or sub-article (2) if there is a doubt or a difference
in opinion.

\(4\) The session member or the session secretary as meant in
sub-articles (1) and (2) must be replaced and if s(he) is not replaced
or does not withdraw while a ruling on the said dispute has been passed,
the said ruling shall be invalid and the chairperson shall instruct that
the said dispute should immediately be examined in another court with a
council of a different composition and a different session secretary,
unless the said ruling has exceeded a period of 1 (one) year.

\(5\) In the event that the direct or indirect interest as meant in
sub-article (1) becomes known before the passage of 1 (one) year after
the ruling is passed on the dispute as meant in sub-article (4), the
said dispute shall be brought to a session again within 3 (three) months
as from the time when the said interest becomes known.

Article 52

\(1\) A session chairperson shall summon the party subjected to an
appeal or the sued party and may summon the appellant or the litigant to
provide oral information.

\(2\) In the event that the appellant or the litigant notifies that
s(he) shall be present in the session as meant in Article 45, the
session chairperson shall notify the date and the day of the session to
the appellant or the litigant.

Article 53

\(1\) The session chairperson shall explain the problem being disputed.

\(2\) The council shall enquire the party subjected to the appeal or the
litigant about matters brought forward by the appellant or the litigant
in the letter of appeal or the letter of lawsuit and in the letter of
denial.

\(3\) If the council deems it necessary and if the appellant or the
litigant is present in the session, the session chairperson may ask the
appellant or the litigant to provide the necessary information in the
settlement of the tax dispute.

Article 54

\(1\) At the request of one of the disputing parties, or owing to his
position, the session chairperson may instruct that a witness should
testify in the session.

\(2\) The witness so instructed by the session chairperson as meant in
sub-article (1) shall be obligated to be present in the session.

\(3\) In the event that the witness fails to appear although s(he) has
been properly summoned, and that the council may pass a ruling without
having to hear the witness\'s testimony, the session chairperson shall
proceed with the session.

\(4\) If a witness fails to appear without any accountable reason
although s(he) has been properly summoned, and if the council has
sufficient reasons to suspect that the witness deliberately fails to
appear, and the council cannot pass a ruling without the testimony of
the said witness, the session chairperson may ask the police to bring
the witness to the session.

Article 55

\(1\) Witnesses shall be summoned to the session one after another.

\(2\) The session chairperson shall ask a witness questions about
his/her full name, place of birth, age and date of birth, sex,
nationality, residence, religion, occupation, family relationship and
working relationship with the litigant or the sued party.

\(3\) Prior to giving his/her testimony a witness shall be obligated to
take an oath or make a pledge in accordance with his/her religion or
belief.

Article 56

\(1\) Those whose testimony as witnesses as meant in Article 54 may not
be heard shall be:

\(a\) persons with a linear family relationship above and below up to
the third remove with one of the disputing parties;

\(b\) the spouse of the appellant or the litigant in spite of a divorce;

\(c\) children not reaching the age of 17 (seventeen) years; or

\(d\) those with a mental illness.

\(2\) If deemed necessary, the session chairperson may request that the
testimony of the parties as meant in sub-article (1) letters (a), (b)
and (c) should be heard.

Article 57

The parties as meant in Article 56 sub-article (2) may reject the
request of the session chairperson that they testify.

Article 58

As for everyone who, owing to their job or position, shall be obligated
to keep confidential everything related to their job or position, the
said obligation to keep things confidential shall not hold for session
purposes.

Article 59

\(1\) Questions addressed to a witness by one of the parties shall be
conveyed through the session chairperson.

\(2\) If in the consideration of the session chairman the said chairman
the said questions are not relevant to the dispute, the questions shall
be overruled.

Article 60

\(1\) If an appellant or a litigant or a witness does not understand
Indonesian, the session chairperson shall appoint an interpreter.

\(2\) Before undertaking the job of interpretation from the language
understood by the appellant or the litigant or the witness as meant in
sub-article (1) into Indonesian or vice versa in the best possible
manner, the said interpreter shall take an oath or make a pledge
according to his/her religion or belief.

\(3\) A person serving as a witness in a dispute may not be appointed as
an interpreter in the said dispute.

Article 61

\(1\) In the event that an appellant or a litigant or a witness turns
out to be dumb and/or deaf but that s(he) cannot write the session
chairperson shall appoint as an interpreter a person with an ability to
get on with the appellant or the litigant or the witness.

\(2\) Prior to undertaking his/her assignment, the interpreter as meant
in sub-article (1) shall take an oath or make a pledge according to
his/her religion or belief.

\(3\) In the event that the appellant or the litigant or the witness
turns out to be dumb and/or deaf but that s(he) can write, the session
chairperson may instruct the session secretary to write down questions
or warnings addressed to the appellant or the litigant or the witness,
and instruct that this writing be conveyed to the said appellant or
litigant or witness so that s(he) can answer in writing and then all the
questions and the answers shall be read out.

Article 62

\(1\) A witness shall take an oath or make a pledge and shall testify in
a session attended by the party subjected to the appeal or the sued
party.

\(2\) If the party subjected to the appeal or the sued party has been
properly summoned but fails to appear without any accountable reasons,
the witness shall take an oath or make a pledge and shall testify in the
absence of the party subjected to the appeal or the sued party.

\(3\) In the event that the witness to testify cannot be present in the
session because of an obstacle which is legally justified, the council
may come to the residence of the witness to take his oath or pledge and
hear the testimony of the said witness in the absence of the party
subjected to the appeal or the sued party.

Article 63

\(1\) If a dispute cannot be settled in one session day, the examination
shall be continued in the next stipulated session day.

\(2\) The next session day shall be notified to the party subjected to
the appeal or the sued party and may be notified to the appellant or the
litigant.

\(3\) In the event that the party subjected to the appeal or the sued
party fails to appear in the session without any accountable reasons
although s(he) has been properly notified, the session may be continued
in the absence of the party subjected to the appeal or the sued party.

\(4\) A witness not residing in the jurisdiction of the Agency for the
Settlement of Tax Disputes examining and passing a ruling on a tax
dispute, may testify through the Agency for the Settlement of Tax
Disputes whose jurisdiction encompasses the residence of the witness.

Sixth Part

Examination with a Speedy Procedure

Article 64

An examination with a speedy procedure shall be conducted by the council
or a single member

Article 65

\(1\) An examination with a speedy procedure shall be conducted with
respect to:

\(a\) certain tax disputes;

\(b\) a tax dispute whose decision is not made within a period of 12
(twelve) months as meant in Article 80 sub-article (1);

\(c\) non-fulfilment of one of the provisions as meant in Article 85
sub-article (1) or a writing error and/or a calculation error, in the
ruling of the Agency for the Settlement of Tax Disputes;

\(d\) a statement of appeal revocation as meant in Article 37
sub-article (1);

\(e\) a statement of lawsuit revocation as meant in Article 40
sub-article (1);

\(f\) a dispute which on the basis of legal consideration is beyond the
authority of the Agency for the Settlement of Tax Disputes.

\(2\) Certain tax disputes as meant in sub-article (1) letter (a) shall
be:

\(a\) tax disputes the appeals or lawsuits against which do not fulfill
the provisions as meant in Article 32 sub-article (1), Article 32
sub-article (2), Article 33 sub-article (1), Article 38 sub-article (1),
and/or Article 41 sub-article (1);

\(b\) an appeal regarding a disputed tax amount not exceeding
Rp. 1,000,000.00 (one million rupiahs).

\(3\) A change in the amount of the disputed tax as meant in sub-article
(2) letter (b) shall be stipulated by the Minister.

Article 66

An examination with a speedy procedure of tax disputes as meant in
Article 65 sub-article (1) letter (c), letter (d), letter (e) and letter
(f) and Article 65 sub-article (2) letter (a) shall be conducted without
a letter of appeal or description or a letter of response and without a
letter of denial, while that of tax disputes as meant in Article 65
sub-article (2) letter (b) shall be conducted without a letter of
denial.

Article 67

All provisions regarding an examination with an ordinary procedure shall
also apply to an examination with a speedy procedure.

Seventh Part

Establishment of Evidence

Article 68

\(1\) Means of evidence establishment may take the form of:

\(a\) letters or inscription;

\(b\) confessions made by all parties;

\(c\) a witness\'s testimony;

\(d\) an expert\'s testimony;

\(e\) a member\'s knowledge.

\(2\) Evidence need not be established regarding conditions publicly
known.

Article 69

Letters or inscription used as means of evidence establishment may be in
the form of:

\(a\) decrees or letters of decisions issued by authorized officials;

\(b\) other letters or inscription related to the appeal or the lawsuit.

Article 70

Confessions made by all parties cannot be retracted unless this is done
on the basis of strong reasons acceptable to session members.

Article 71

A witness\'s testimony shall be considered as a means of evidence
establishment if this testimony is connected with things experienced,
seen or heard by the witness himself/herself.

Article 72

\(1\) The testimony of an expert shall be the opinion given by a person
under oath in a session regarding something that he has knowledge of
according to his own experience and knowledge.

\(2\) Persons not allowed to testify as witnesses as meant in Article 56
sub-article (1) shall not be allowed to provide an expert\'s testimony.

Article 73

\(1\) At the request of both parties or one of the parties or because of
his position, the session chairman or a single member may appoint one
expert or more.

\(2\) In a session an expert must give an oral and written testimony,
confirmed with his oath or pledge regarding an actual matter according
to his/her experience and knowledge.

Article 74

The knowledge of a session member shall be something that s(he) knows
and whose truthfulness s(he) is convinced of.

Article 75

A session member shall determine what shall need evidence establishment,
the charges incurred for evidence establishment and the evaluation of
evidence establishment and evidence establishment will be valid if there
are at least two means of evidence establishment as meant in Article 68
sub-article (1).

Eighth Part

Ruling

Article 76

The ruling of the Agency for the Settlement of Tax Disputes shall
constitute a final and a permanent decision and shall not constitute the
decision of a state\'s administration.

Article 77

The ruling of the Agency for the Settlement of Tax Disputes shall be
passed on the basis of the result of an evaluation of evidence
establishment, the tax laws concerned and the conviction of session
members.

Article 78

In the event that the examination is conducted by a council, the ruling
of the Agency for the Settlement of Tax Disputes as meant in Article 77
shall be passed on the basis of deliberation led by the session chairman
and if the deliberation fails to reach a consensus the ruling shall be
passed through majority votes in voting.

Article 79

\(1\) The ruling of the Agency for the Settlement of Tax Disputes may
take the form of:

\(a\) a rejection;

\(b\) a partial or total acceptance;

\(c\) an increase in the amount of the tax to be paid;

\(d\) non-acceptance;

\(e\) correction of a written error and/or calculation error.

\(2\) The ruling as meant in sub-article (1) can no longer be subject to
an appeal or a lawsuit.

Article 80

\(1\) The ruling in the case of an examination with an ordinary
procedure shall be passed within a period of 12 (twelve) months as from
the receipt of the appeal or the lawsuit.

\(2\) If a ruling on the appeal or the lawsuit still has not been passed
within the period as meant in sub-article (1), the Agency for the
Settlement of Tax Disputes shall pass a ruling in the form of acceptance
of the entire appeal or lawsuit through an examination with a speedy
procedure, within a period of 30 (thirty) days as from the end of the
said period of 12 (twelve) months.

\(3\) Session members neglecting the passing of a ruling within the
period of time as meant in sub-article (1) so that the appeal or the
lawsuit is totally accepted, may be subject to the imposition of
sanctions as meant in Article 14 sub-article (1).

Article 81

\(1\) The ruling after an examination with a speedy procedure of certain
tax disputes as meant in Article 65 sub-article (2) letter (a) in the
form of non-acceptance, shall be passed within the following periods of
time:

\(a\) 30 (thirty) days as from the time when the time-limit for the
filing of an appeal or a lawsuit is exceeded;

\(b\) 30 (thirty) days as from the time when the appeal or the lawsuit
is received in the event that it is filed after the time-limit for such
filing is exceeded.

\(2\) The ruling after an examination with a speedy procedure of the
errors as meant in Article 65 sub-article (1) letter (e) in the form of
correction of a writing error and/or a calculation error, shall be
passed within a period of 30 (thirty) days as from the time when the
said error becomes known or as from the time when the application of one
of the parties is received.

\(3\) The ruling after an examination with a speedy procedure of a
revoked appeal as meant in Article 65 sub-article (1) letter (d) and of
a revoked lawsuit as meant in Article 85 sub-article (1) letter (e) in
the form of non acceptance, shall be passed within a period of 30
(thirty) days as from the receipt of the letter of statement of the
revocation of the appeal or the lawsuit.

\(4\) The ruling of an examination with a speedy procedure of a dispute
which on the basis of legal considerations is beyond the authority of
the Agency for the Settlement of Tax Disputes as meant in Article 65
sub-article (1) letter (f) in the form of non-acceptance, shall be
passed within a period of 30 (thirty) days as from the receipt of the
letter of appeal or the letter of lawsuit.

\(5\) In the event that the ruling of the Agency for the Settlement of
Tax Disputes is passed regarding tax disputes as meant in sub-article
(4), the appellant or the litigant may file a lawsuit to authorized
judicature.

Article 82

The ruling after an examination with a speedy procedure of an appeal
with the amount of the disputed tax not exceeding Rp 1,000,000.00 (one
million rupiahs) as meant in Article 65 sub-article (2) letter (b) shall
be passed within a period of 6 (six) months as from the receipt of the
letter of appeal.

Article 83

IF after the passage of the period of time as meant in Article 80
sub-article (2) or Article 81, or Article 82, the agency for the
Settlement of Tax Disputes has not passed a ruling, the ruling to be
passed on the said tax disputes shall be as follows:

\(a\) accepting the entire application, regarding the tax disputes as
meant in Article 80 sub-article (2) and Article 82;

\(b\) unaccepted, regarding the tax disputes as meant in Article 81
sub-article (1), sub-article (3) and sub-article (94);

\(c\) correcting a writing error and/or a calculation error, regarding
the errors as meant in Article 81 sub-article (2).

Article 84

\(1\) The ruling of the Agency for the Settlement of Tax Disputes must
be read out in a session open to the public.

\(2\) Failure to fulfil the provision as meant in sub-article (1) shall
make the ruling of the Agency for the Settlement of Tax Disputes invalid
and void of legal power and therefore the said ruling must be read out
again in a session open to the public.

Article 85

\(1\) The ruling of the Agency for the Settlement of Tax Disputes must
contain:

\(a\) the heading of the ruling reading \"FOR THE SAKE OF JUSTICE ON THE
BASIS OF GOD THE ALMIGHTY\";

\(b\) the name, residence or domicile, and/or other items of identity of
the appellant or litigant;

\(c\) the job title and address of the party subjected to the appeal or
the sued party;

\(d\) the day and date of receipt of the appeal or lawsuit;

\(e\) a clear summary of the appeal or lawsuit, and a clear summary of
the letter of appeal description or the letter of response, or the
letter of denial;

\(g\) the legal reasons forming the basis of the ruling;

\(h\) the injunction in the ruling on the dispute;

\(i\) the day and date of the ruling, the names of session members
passing the ruling, the name of the session secretary and a description
of the presence or the absence of the parties.

\(2\) The summaries as meant in sub-article (1) letter (e) shall not be
needed in the event that the ruling of the Agency for the Settlement of
Tax Disputes is passed on tax disputes as meant in Article 65
sub-article (1) letter (b), letter (c), letter (d), letter (e), letter
(f) and Article 65 sub-article (2) letter (a).

\(3\) The ruling of the Agency for the Settlement of Tax Disputes must
be signed by session members passing the ruling and the session
secretary.

\(4\) If the chairperson of the session or the single member convening
the session is prevented from signing the ruling, the ruling shall be
signed by the chairperson, who shall state that the chairperson of the
session or the sole member is prevented from doing so.

\(5\) If session members are prevented from signing the ruling, the
ruling shall be signed by the chairperson of the session, who shall
state that the said session members are prevented from doing so.

Article 86

\(1\) In every examination, the secretary of the session must draw up an
official report on the session containing everything happening during a
session.

\(2\) The official report on the session shall be signed by the
chairperson of the session or the single member and the session
secretary and if one of them is prevented from doing so, this shall be
stated in the official report of the session.

\(3\) If the chairperson of the session or the single member and the
session secretary are prevented from signing the official report on the
session, the official report on the session shall be signed by the
chairperson, who shall state that the chairperson of the session or the
single member and the session secretary are prevented from doing so.

Ninth Part

Ruling Implementation

Article 87

A ruling of the Agency for the Settlement of Tax Disputes can be
directly implemented and no longer need the decision of an authorized
official, unless otherwise stipulated by the laws.

Article 88

If a ruling of the Agency for the Settlement of Tax Disputes accepts
part or all of the appeal, the excess amount in tax payment shall be
refunded plus a compensation in the form of an interest of 2% (two per
cent) a month for a maximum period of 24 (twenty-four) months.

Article 89

\(1\) A copy of a ruling of the Agency for the Settlement of Tax
Disputes shall be sent to all parties by post by the secretary within a
period of 30 (thirty) days as from the date of stipulation of the ruling
of the Agency for the Settlement of Tax Disputes.

\(2\) A ruling of the Agency for the Settlement of Tax Disputes must be
implemented by an authorized official within a period of 30 (thirty)
days as from the date of receipt of the ruling.

\(3\) An official failing to implement a ruling of the Agency for the
Settlement of Tax Disputes within the period of time as meant in
sub-article (2) shall be subject to the imposition of a sanction
pursuant to the prevailing laws.

CHAPTER V

OTHER PROVISION

Article 90

The provision on allowances and others for the chairperson, chairperson
deputies and members shall be stipulated in a ministerial decree.

CHAPTER VI

TRANSITIONAL PROVISIONS

Article 91

\(1\) An appeal which has been filed to the Tax Advisory Council or the
Customs and Excise Advisory Institute prior to 1 January 1998 and on
which no ruling has been passed shall be treated as an appeal filed on
the basis of this law.

\(2\) A ruling on the appeal as meant in sub-article (1) must be passed
within 36 (thirty-six) months as from the enactment of this law.

\(3\) A lawsuit against the implementation of the tax law already filed
to the public court or the state\'s administrative court prior to 1
January 1998 shall continue to be examined and have a ruling passed on
it by the said court.

CHAPTER VII

CLOSING PROVISIONS

Article 92

With the enactment of this law, *Regeling van het Beroep in
Belastingzaken* (Statute Book No. 29/1927) as already amended and
supplemented the latest by Law No. 5/1959 (Statute Book No. 13/1959,
Supplement to Statute Book No. 1748) shall be declared null and void.

Article 93

This law is called the Law on the Agency for the Settlement of Tax
Disputes.

Article 94

This law shall take effect as from 1 January 1998.

For public cognizance, this law shall be promulgated by publishing it in
the Statute Book of the Republic of Indonesia.

Promulgated in Jakarta Validated in Jakarta

On 23 May 1997 On 23 May 1997

THE MINISTER/STATE SECRETARY THE PRESIDENT OF THE REPUBLIC

sgd. OF INDONESIA

M O E R D I O N O sgd.

S O E H A R T O

STATUTE BOOK OF THE REPUBLIC OF INDONESIA NO. 40/1997

ELUCIDATION

ON

LAW NO. 17/1997

ON

THE AGENCY FOR THE SETTLEMENT OF TAX DISPUTES

GENERAL

The State of the Republic of Indonesia is a law-based state founded on
Pancasila and the Constitution of 1945 and upholding the rights and
obligations of its citizens, and in the framework of national mutual
assistance as the realization of the participation of the community in
the financing of the state and the national development it places the
tax obligation as one of the obligations to the state.

In its development, the act of financing national development requires
increasingly large funds and therefore taxes as the main source of
state\'s receipts must continue to be increased so that national
development may be implemented by one\'s own capacity on the basis of
the self-supporting principle.

Improvement of the awareness of the community in the tax area must be
supported by the climate in support of increased active role of the
community to fulfil their obligations to the state in the tax area
pursuant to the tax laws.

In line with the function and the characteristics of tax as the main
source of state\'s receipts and the obligations to the state on the part
of taxpayers, and the increase in the number of taxpayers and better
understanding of their rights and obligations in the implementation of
the tax laws, potential for tax disputes has increased.

The Tax Advisory Council set up on the basis of *Regeling van het Beroep
in Belastingzaken Staatsblad* No. 29/1927 as already amended the latest
by Law No. 5/1959 is no longer compatible with the need in the
settlement of tax disputes. Likewise, the Customs and Excise Advisory
Institute as meant in Law No. 10/1995 on customs affairs and Law No.
11/1995 on excise is no longer needed.

In line with the economic development as a result of national
development and in order to be able to provide better services to
community members as taxpayers, it is necessary to have a more
comprehensive judicature institute set up by virtue of the law, which
shall guarantee the rights and obligations of taxpayers pursuant to the
tax law and can give a legal ruling on a tax dispute in a simple, speedy
and cheap process.

The ruling of the said tax judicature institute may serve as a guideline
and a reference in the implementation of the tax law so that the tax law
may provide legal certainty and justice to all parties.

Law No. 6/1983 on the general provisions and the procedure for taxation
as already amended by Law No. 9/1994 contains basic provisions regarding
a tax judicature agency and decrees the drawing up of a law which shall
contain the structure, power and procedure of a tax judicature agency

With strong compliance with the basic provisions already outlined in the
above-mentioned law and with a view to obtaining legal certainty and
justice and in order to translate into reality a tax judicature with a
simple, speedy and cheap process, the Agency for the Settlement of Tax
Disputes is established by virtue of this law and its establishment the
following direction and aims:

1\. The Agency for the Settlement of Tax Disputes shall be a tax
judicature agency assigned to examine and pass a ruling on tax disputes
in the form of:

\(a\) appeals against the decisions made by authorized officials;

\(b\) lawsuits against the implementation of the tax laws in respect of
collection.

2\. The ruling of the Agency for the Settlement of Tax Disputes shall
have an executorial power and an equal legal position to the ruling of a
court of law with a permanent legal force, with the heading of the
ruling being given the following words: \"FOR THE SAKE OF JUSTICE ON THE
BASIS OF GOD THE ALMIGHTY\".

3\. The filing of an appeal or a lawsuit to the Agency for the
Settlement of Tax Disputes shall constitute the last legal attempt to a
taxpayer and a lawsuit cannot be filed against the ruling it passes in a
public court or a state administrative court.

4\. By virtue of this law the Agency for the Settlement of Tax Disputes
is established for the first time with a domicile in the state\'s
capital, with the power of this law another Agency for the Settlement of
Tax Disputes of the same level may be set up in the state\'s capital and
at other places while the implementation of the establishment of the
agency shall be regulated in a presidential decree.

5\. Organizational, administrative and financial fostering of the Agency
for the Settlement of Tax Disputes shall be undertaken by the Ministry
of Finance.

6\. To provide good services and legal certainty to an appellant or a
litigant, the filing of an appeal or a lawsuit and an examination up to
the implementation of the ruling of the Agency for the Settlement of Tax
Disputes shall have their period of time stipulated.

If a ruling is not passed within a stipulated period, the appeal or
lawsuit shall be granted, while if formal requirements for the filing of
an appeal or a lawsuit are not fulfilled, the appeal or lawsuit cannot
be accepted.

7\. One of the formal requirements of the filing of an appeal shall be
that the amount of the tax being disputed in the decision to which an
appeal has been filed must be fully paid, and if the appeal is granted
partly or fully, the appellant shall deserve a compensation in the form
of an interest of 2% (two per cent) a month on the excess tax payment
for a maximum period of 24 (twenty-four) months.

8\. One of the requirements for the filing of a lawsuit shall be that
the registration fee should be settled.

9\. Members of the Agency for the Settlement of Tax Disputes shall be
professionals, namely university graduates with expertise in the tax
area and shall be assisted by the session secretary in undertaking a
session.

10\. An examination with a speedy procedure may be conducted by the
council or by a single member.

11\. On the basis of the confidential nature of taxation, the
examination by the Agency for the Settlement of Tax Disputes shall be
conducted in a closed session, while the ruling shall be said in a
session open to the public.

12\. The ruling of the Agency for the Settlement of Tax Disputes can be
implemented directly without having to wait for the decision of an
authorized official, unless otherwise stipulated by the law.

The establishment of this law takes into account its relationship with a
number of other laws, namely:

1\. Law No. 7/1983 on the income tax (Statue Book No. 50/1983) as
already amended the latest by Law No. 10/1994 (Statute Book No.
60/1994), Supplement to Statute Book No. 3567);

2\. Law No. 8/1983 on the value added tax on goods and services and the
sales tax on luxury goods (Statute Book No. 51/1983, Supplement to
Statute Book No. 3269), as already amended by Law No. 11/1994 (Statute
Book No. 61/1994, Supplement to Statute Book No. 3568);

3\. Law No. 12/1985 on the land and building tax (Statute Book No.
68/1985, Supplement to Statute Book No. 3312), as already amended by Law
No. 12/1994 (Statute Book No. 62/1994, Supplement to Statute Book No.
3569);

4\. Law No. 13/1985 on stamp duties (Statute Book No. 69/1985,
Supplement to Statute Book No. 3313);

5\. Law No. 10/1995 on customs affairs (Statute Book No. 75/1995,
Supplement to Statute Book No. 3612);

6\. Law No. 11/1995 on excise (Statute Book No. 76/1995, Supplement to
Statute Book No. 3613);

ARTICLE BY ARTICLE

Article 1

Sufficiently clear.

Article 2

Sufficiently clear.

Article 3

Sub-Article (1)

The Agency for the Settlement of Tax Disputes shall be domiciled in the
state\'s capital for the first time it is established by virtue of this
law.

Sub-Article (2)

By virtue of the power of this law, the Agency for the Settlement of Tax
Disputes of the same level as the Agency for the Settlement of Tax
Disputes as meant in sub-article (1) may again be set up in the state\'s
capital and at other places by virtue of a presidential decree.

Article 4

Essentially, the place of a session of the Agency for the Settlement of
Tax Disputes shall be the domicile of the agency. However, with a view
to expediting and speeding up the handling of appeals or lawsuits, the
chairperson may decide other places within his jurisdiction as the site
of the session.

Article 5

Sufficiently clear.

Article 6

Sufficiently clear.

Article 7

The need to have at least two chairperson deputies is based on the
number of tax disputes to be settled, if the number of tax disputes is
already too big to be handled by one chairperson deputy, another
chairperson deputy shall be needed. In the event that there are at least
two chairperson deputies, the tasks of each chairperson deputy may be
adjusted to the types of tax and the number of the tax disputes.

Article 8

The age limit set as a requirement in this article is meant to ensure
that the member concerned already has enough experience in the legal,
economic, financial, accounting, trade or taxation area.

Article 9

Sufficiently clear.

Article 10

The chairperson and chairperson deputy/deputies shall be selected from
among the members so that both the chairperson and the chairperson
deputy/deputies and the members shall be assigned at the Agency for the
Settlement of Tax Disputes for a period of 5 (five) years and may have
their term of office extended for another 5 (five) years. Therefore, all
members, assuming the position of a chairperson or a chairperson deputy
or being simply members can be assigned at the Agency for the Settlement
of Tax Disputes for a maximum period of 10 (ten) years.

Article 11

Sufficiently clear.

Article 12

Sub-Article (1)

Referred to as fostering shall be the improvement of the professionalism
of the Agency for the Settlement of Tax Disputes, particularly with
respect to the enhancement of knowledge in the tax area.

Sub-Article (2)

Referred to as being conscientious and proper shall be, among other
things, that the process of settling a tax dispute must be implemented
in accordance with the prevailing provisions and with account being
taken of objectiveness.

Sub-Article (3)

Referred to as an authorized person shall be superior who has the
authority to impose a sanction.

Sub-Article (4)

Sufficiently clear.

Article 13

Sub-Article (1)

Referred to as the executor of a ruling of the Agency for the Settlement
of Tax Disputes as meant in letter (a) shall be an authorized official.

The definition of members shall include the chairperson and chairperson
deputy/deputies.

Sub-Article (2)

Sufficiently clear.

Article 14

Sub-Article (1)

Referred to as a continuous physical or mental illness shall be an
illness which causes the patient to be no longer able to perform his
tasks well.

Referred to as being negligent or incapable shall be, for example, that
the person concerned commits a mistake in performing his tasks
indeliberately or because of his incapability.

Referred to as tasks shall be all tasks to be assumed by the person
concerned.

Sub-Article (2)

Sufficiently clear.

Article 15

Referred to as being penalized shall be being imprisoned for at least 6
(six) months.

Referred to as committing a shameful act shall be the act of downgrading
the dignity of the Agency for the Settlement of Tax Disputes as a result
of the behaviour, deeds and acts of the person concerned either inside
or outside the Agency for the Settlement of Tax Disputes.

Article 16

Sufficiently clear.

Article 17

There shall be only one Council of Honour for the entire Agency for the
Settlement of Tax Disputes.

Article 18

Sufficiently clear.

Article 19

Sufficiently clear.

Article 20

Sufficiently clear.

Article 21

Sufficiently clear.

Article 22

Sufficiently clear.

Article 23

Su-Article (1)

Referred to as the administration of the settlement of a tax dispute
shall be the administration related to the tax dispute from the time the
tax dispute is brought to the Agency for the Settlement of Tax Disputes
up to the passing of a ruling.

Referred to as a general administration shall be the administration
connected with the daily operation of the office such as personnel
matters, financial matters, instruments or equipment.

The secretary of the Agency for the Settlement of Tax Disputes shall
perform the task of tax dispute administration and general
administration, assisted by one deputy secretary.

Included in the tasks of the secretary or the deputy secretary shall be
the recording of the proceedings of the examination of a tax dispute and
while doing the said tasks, the secretary or deputy secretary shall be
called a session secretary.

Sub-Article (2)

In carrying out the task in the administration of tax dispute
settlement, including the recording of the proceedings of the
examination of tax disputes, the secretary shall be assisted by one
deputy secretary and one alternate secretary or more.

If an alternate secretary is assigned to record the proceedings of the
examination of a tax dispute, the said alternate secretary shall be
called a session secretary.

Article 24

Sufficiently clear.

Article 25

Sufficiently clear.

Article 26

Sufficiently clear.

Article 27

Sufficiently clear.

Article 28

Sufficiently clear.

Article 29

Referred to as a legal proxy shall be a person or more representing the
disputing parties and acting for and on behalf of the disputing parties
at the Agency for the Settlement of Tax Disputes.

Article 30

In the event that the bank acts as a third party, the resaid request for
information or data shall be made pursuant to the prevailing laws on
banking.

Article 31

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

Attorneys already obtaining a licence from an authorized government
agency and fulfilling the requirements set in this sub-article may
accompany the parties as legal proxies.

If there is someone already fulfilling the requirement as a legal proxy
in accordance with this sub-article, but not as an attorney as meant
above, a permission must be obtained by the person concerned from the
chairperson before he can act as a legal proxy.

Sub-Article (3)

Sufficiently clear.

Article 32

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

The period of 3 (three) months shall be calculated from date to date,
which means that the calculation shall begin one day after the date of
the receipt of the decision up to the date on which the letter of appeal
is sent by the appellant.

For example: the decision against which an appeal is filed is received
on 10 May 1999, so the latest date for the dispatch of a letter of
appeal shall be 9 August 1999.

Sub-Article (3)

The period of time for the filing of an appeal as regulated in the laws
is intended to ensure that an appellant shall have sufficient time to
prepare the appeal and its reasons.

If it turns out that the said period of time is not fulfilled by the
appellant because of circumstances beyond his power (*force majeure*),
the said period of time may be considered by the Agency for the
Settlement of Tax Disputes.

In the event that there are circumstances beyond the power of the
appellant, the said period of 3 (three) months shall be calculated from
the time when the circumstances beyond his power come to an end.

Article 33

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Included in the definition of copies shall be Xerox copies or other
sheets.

Article 34

Referred to as the amount of outstanding tax shall be import duty,
excise, administrative sanctions and other import levies. In the event
that the tariff of the import duty is set at 0 per cent (nil per cent)
and the appellant has an objection to the classification of the imported
goods, the appellant must settle the payment of other import levies.

If on the decision of the official there is no tax amount which must be
paid -- for example, if the said decision admits that the taxpayer of an
income tax sustains a loss and the loss is in a smaller amount -- then
there shall not be in this case a tax amount which must be settled.

Article 35

Sufficiently clear.

Article 36

An appeal not fulfilling the requirement as meant in Article 32
sub-article (1), Article 33 sub-article (1) and/or Article 34 and which
later within the period of time as meant in Article 32 sub-article (2)
is followed with a letter or document so that the said appeal is in
agreement with the prevailing provision, the date of receipt of the
letter of appeal shall be the date of receipt of the said letter or
document that follows.

Article 37

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

As for the appeal presented to the Agency for the Settlement of Tax
Disputes and not yet examined or being examined, an application for
revocation may be filed.

The said application for revocation shall be examined with a speedy
procedure.

An appeal can no longer be filed against the ruling passed after the
said examination with a speedy procedure.

Article 38

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

In the event that the time-limit cannot be fulfilled by the litigant
because of circumstances beyond his power (*force majeure*) the
chairperson may consider extending the said period of time.

The extension of the said period of time shall be 14 (fourteen) days as
from the time when the circusmtances beyond his power come to an end.

Article 39

Sub-Article (1)

Referred as a document the implementation of which is subject to a
lawsuit shall be a distress warrant, confiscation or auction.

Sub-Article (2)

Sufficiently clear.

Article 40

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

An application for revocation can be filed with respect to a lawsuit
presented to the Agency for the Settlement of Tax Disputes and not yet
examined or being examined.

The said application for revocation may be subject to an examination
with a speedy procedure.

No lawsuit can be filed against the ruling passed after an examination
with a speedy procedure.

Article 41

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

The amount of the registration fee may be changed on the basis of
economic and monetary considerations.

Article 42

Sufficiently clear.

Article 43

Sufficiently clear.

Article 44

Sufficiently clear.

Article 45

Sufficiently clear.

Article 46

Sufficiently clear.

Article 47

Sufficiently clear.

Article 48

Sufficiently clear.

Article 49

Sub-Article (1)

The session of the Agency for the Settlement of Tax Disputes shall be
declared closed to the public with a view to protecting the
confidentiality of the appellant or the litigant.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Referred to as completeness in this sub-article shall be among others
the xerox copy of the decision which is subject to the appeal or the
lawsuit, while referred to as clarity shall be, among other things, the
reason for the appeal or the lawsuit.

Article 50

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Sufficiently clear.

Sub-Article (4)

The period of 3 (three) months shall be needed to allow sufficient time
to the Agency for the Settlement of Tax Disputes to pass a ruling.

Article 51

Sub-Article (1)

Referred to as a direct interest shall be, among others, anything
directly linked with ownership, for example, a session member having
shares numbering over 25% (twenty-five per cent) of the shares of the
company filing an appeal or a lawsuit.

Following the example above, what is referred to as an indirect
connection shall be that the shares are owned by the child of the said
session member

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Sufficiently clear.

Sub-Article (4)

If the direct interest or the indirect interest comes to light after the
passage of 1 (one) year, the ruling shall remain valid.

Sub-Article (5)

The period of 3 (three) months shall be needed to allow sufficient time
to the Agency for the Settlement of Tax Disputes to pass a ruling.

Article 52

Sub-Article (1)

The party subject to an appeal or a lawsuit who is summoned by the
chairperson of a session shall be obligated to be present in the
session.

An appellant or a litigant may be summoned by the chairman of a session
and if summoned, the person concerned shall be obligated to be present
in the session.

Sub-Article (2)

Sufficiently clear.

Article 53

Sufficiently clear.

Article 54

Sub-Article (1)

The charges incurred to bring a witness to a session as requested by the
disputing parties shall be borne by the requesting party. If a witness
is required to come by the chairperson of a session because of his
office, the charges incurred to bring the witness shall be borne by the
Agency for the Settlement of Tax Disputes.

Sub-Article (2)

Referred to as a witness coming by himself in the session shall be that
a witness cannot be represented by another person or ask another person
as his proxy.

Sub-Article (3)

Sufficiently clear.

Sub-Article (4)

Sufficiently clear.

Article 55

Sub-Article (1)

Witnesses shall be called into a session one by one in the order deemed
the best by the chairperson of the session.

A witness already examined shall remain inside the session room with the
exception that at his own request, or at the request of another witness,
or at the request of the disputing parties, the person concerned can
leave the session room with the permission of the chairperson of the
session.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Sufficiently clear.

Article 56

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

The said information is needed to give more information and greater
conviction of the session member concerned, and the parties from whom
information is requested need not take an oath or make a pledge.

Article 57

Sufficiently clear.

Article 58

Specially with respect to banks, the obligation to keep things
confidential shall be abolished by virtue of a written instruction from
the Minister pursuant to the law on banking affairs.

Article 59

Sufficiently clear.

Article 60

Sufficiently clear.

Article 61

Sufficiently clear.

Article 62

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Referred to as an obstacle which may be justified by the law shall be,
for example, that the witness is already at a very advanced age, or is
suffering from an illness which shall not enable him to be present in a
session.

The council may assign one of the session members to take an oath or
make a pledge.

Article 63

Sufficiently clear.

Article 64

The chairperson shall be authorized to decide that the examination with
a speedy procedure shall be conducted by a council or a single member.

Article 65

Sub-Article (1)

Referred to as a dispute which is not within the authority of the Agency
for the Settlement of Tax Disputes as meant in letter (f), shall be, for
example, the lawsuit that a third party files against the implementation
of confiscation on the basis of a claim of the right of proprietorship
over the goods confiscated.

Sub-Article (2)

Referred to as a dispute on a certain tax shall be a tax dispute which
is filed to the Agency for the Settlement of Tax Disputes and whose
appeal or lawsuit fails to fulfil formal requirements, or which is
linked with a tax dispute with the disputed amount not exceeding Rp
1,000,000.00 (one million rupiahs).

Sub-Article (3)

The amount of the tax being disputed may be changed by the Minister on
the basis of economic and monetary considerations.

Article 66

Sufficiently clear.

Article 67

The provision on an examination with an ordinary procedure shall also
apply to an examination with a speedy procedure, namely the provisions
on the opening of a session and the withdrawal and replacement of
session members and the session secretary, the provision on witnesses,
confidentiality and interpreters as meant in Articles 49, 50, 51, 52,
53, 54, 55, 56, 57, 58, 59, 60, 61, 62 and 63.

Article 68

Sub-Article (1)

The Agency for the Settlement of Taxes adheres to the principle of free
establishment of evidence. The council or a single member shall do
its/his/her best to make available evidence in the form of letters or
writing prior to using other means of evidence establishment.

Sub-Article (2)

Conditions known by the public shall be for example:

\(a\) an authentic deed is higher in degree than an unauthentic one;

\(b\) a residential identity card, a driver\'s licence or a passport may
be used as a means of self-identify.

Article 69

Evidence in the form of a letter or writing is independent of its model.
A letter or writing may be in the form of a photocopy, a record, a film,
a diskette, a cassette, a facsimile, a telex, a printout, or a receipt.

Article 70

Sufficiently clear.

Article 71

Sufficiently clear.

Article 72

Sufficiently clear.

Article 73

Sufficiently clear.

Article 74

Sufficiently clear.

Article 75

This article contains a provision intended to determine material truth,
in accordance with the principle adhered to in the laws on taxation.

Therefore, a session member shall strive to determine what evidence must
be established, the charges on evidence establishment, a fair judgement
for all parties and the validity as evidence of the facts revealed
during the session not being limited to facts and matters presented by
the parties.

In the session all parties shall continue to be able to present new
things, which have not been revealed in the appeal or the lawsuit, the
letter of appeal description or the denial or the response.

Article 76

The ruling passed by the Agency for the Settlement of Tax Disputes shall
constitute a final ruling with a permanent legal force.

An appeal or a lawsuit filed to the Agency for the Settlement of Tax
Disputes shall constitute a last legal attempt.

The ruling passed by the Agency for the Settlement of Tax Disputes does
not constitute the ruling of a state\'s administration so the said
ruling shall not be subject to a lawsuit at the state\'s administrative
court.

Article 77

The conviction of a session member shall be based on an evaluation of
evidence establishment and shall be in conformity with the prevailing
laws.

Article 78

Sufficiently clear.

Article 79

This article determines the types of rulings passed by the Agency for
the Settlement of Tax Disputes and shall not recognize the type of
ruling in the form of an interim stipulation or decision.

The ruling of the Agency for the Settlement of Tax Disputes shall not be
subject to a lawsuit filed to a public court, a state\'s administrative
court, or another Agency for the Settlement of Tax Disputes, with the
exception of a ruling in the form of \"non-acceptance\" which is
concerned with competency.

Article 80

Sub-Article (1)

The calculation of a period of 12 (twelve) months in the ruling passed
may be given an example as follows: if the appeal is received on 5 April
1999, the ruling must be passed at the latest on 4 April 2000. If after
4 April 2000 the Agency for the Settlement of Tax Disputes has not
passed a ruling, the said dispute shall be examined with a speedy
procedure with a ruling saying that the appeal filed shall be totally
accepted.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Sufficiently clear.

Article 81

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

The time-limit allowed for the correction of the said error shall be
only 1 (one) year as from the time when the ruling is passed.

Sub-Article (3)

Sufficiently clear.

Sub-Article (4)

Sufficiently clear.

Sub-Article (5)

Sufficiently clear.

Article 82

Sufficiently clear.

Article 83

Sufficiently clear.

Article 84

Sufficiently clear.

Article 85

Sub-Article (1)

Referred to as other forms of identity shall be the taxpayer\'s code
number, the number of taxable company confirmation, a residential
identity card, or a passport.

Sub-Article (2)

Sufficiently clear.

Sub-Article (3)

Sufficiently clear.

Sub-Article (4)

Sufficiently clear.

Sub-Article (5)

Sufficiently clear.

Article 86

Sufficiently clear.

Article 87

Basically the ruling of the Agency for the Settlement of Tax Disputes
can be implemented directly unless the said ruling shall cause excess
tax payment.

For example, if the ruling of the Agency for the Settlement of Tax
Disputes shall cause a tax to be overpaid, the head of the tax service
shall in this case still have to issue a letter of instruction for the
payment of tax overpayment, which a taxpayer shall need to be able to
get back the said overpayment.

With account being taken of the provision on the compensation in the
form of an interest as stipulated in Law No. 6/1983 on the general
provision on and the procedure for taxation as already amended by Law
No. 9/1994, the compensation in the form of an interest shall be given
for tax overpayment:

\(a\) the appeal application of which is filed to the Tax Advisory
Council concerning the fiscal year of 1995 and so forth;

\(b\) the appeal application of which is filed to the Agency for the
Settlement of Tax Disputes.

The procedure for the refunding of tax overpayment along with the
interest shall conform to the prevailing provision.

Article 89

Sufficiently clear.

Article 90

Sufficiently clear.

Article 91

Sub-Article (1)

Sufficiently clear.

Sub-Article (2)

With the establishment of the Agency for the Settlement of Tax Disputes
for the first time on the date when this law becomes effective, on the
basis of this transitional regulation it is stated that an appeal filed
by a taxpayer to the Tax Advisory Council or the Customs and Excise
Advisory Institute but not yet decided upon up to the date of the
enforcement of this law shall be handed over for settlement to the
Agency for the Settlement of Tax Disputes with an official report being
drawn up in this regard.

Sub-Article (3)

Sufficiently clear.

Article 92

Sufficiently clear.

Article 93

Sufficiently clear.

Article 94

Sufficiently clear.

SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NO. 3684

THE ESTABLISHMENT OF THE TAX DISPUTE SETTLEMENT BOARD

(Presidential Decree No. 41/1997 dated 7 October 1997)

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

Considering:

a\. that on the basis of Article 3 paragraph (1) of Law No. 17/1997 on
the Tax Dispute Settlement Board, the formation of the tax dispute
settlement board has been stipulated, which is domiciled in the capital
of the country;

b\. that as the implementation of the stipulation in point a, it is
deemed necessary to lay down provisions concerning the establishment of
the tax dispute settlement board, in a presidential decree.

In view of:

1\. Article 4 paragraph (1) of the Constitution of 1945;

2\. Law No. 17/1997 on the tax dispute settlement board (Statute Book of
1997 No. 40, Supplement to Statute Book No. 3684).

D E C I D E S:

To stipulate:

THE PRESIDENTIAL DECREE CONCERNING THE ESTABLISHMENT OF THE TAX DISPUTE
SETTLEMENT BOARD

Article 1

The Tax Dispute Settlement Board as meant in Article 3 paragraph (1) of
Law No. 17/1997 on the tax dispute settlement board, shall be domiciled
in the Special Region of the Jakarta Capital City.

Article 2

The jurisdiction of the Tax Dispute Settlement Board as meant in Article
1, hereinafter referred to as the Board, shall cover the entire
territory of the Republic of Indonesia.

Article 3

\(1\) The Board shall be composed of executives, members, and a
secretary.

\(2\) The executives as meant in paragraph (1) shall comprise a chairman
and 2 (two) deputy chairmen.

\(3\) The members, including the executives as meant in paragraph (2),
shall total 35 (thirty-fine) at the maximum.

Article 4

\(1\) The members of the Board shall be appointed by the President from
the list of names proposed by the Minister of Finance.

\(2\) The chairman and deputy chairmen of the Board shall be appointed
by the President from among the members as meant in paragraph (1) on the
basis of the proposal of the Minister of Finance.

Article 5

The chairman, deputy chairmen and members of the Board shall be
appointed for a term of office of 5 (five) years, which is extendable
for another term of office.

Article 6

\(1\) The appeals submitted to the Tax Consultative Assembly or the
Customs and Excise Consultative Assembly before 1 January 1998 which are
not yet examined or decided upon, shall be treated as appeals submitted
to the Board and examined pursuant to the provisions in Law No. 17/1997
on the Tax Dispute Settlement Board.

\(2\) The appeals as meant in paragraph (1) shall be decided upon within
36 (thirty-six) months starting from the enforcement of Law No. 17/1997
on the Tax Dispute Settlement Board.

\(3\) Law suits filed against the implementation of tax laws which have
been submitted to public courts or public administration courts before 1
January 1998 shall be examined and decided upon by the said courts.

Article 7

All expenses arising from the establishment of the Board shall be borne
by the Budget of the Ministry of Finance.

Article 8

This presidential decree shall come into force as from the date of
stipulation.

Stipulated in Jakarta

on 7 October 1997

THE PRESIDENT OF THE REPUBLIC OF INDONESIA

sgd.

S O E H A R T O

\_\_\_\_\_\_\_\_\_\_