Narmadi.com

Bearing in mind:

1. Statute of the Republic of Indonesia Number 36 of the Year 1999 regarding Telecommunications (State Gazette of the Republic of Indonesia Number 154 of the Year 1999, Addendum to the State Gazette of the Republic of Indonesia Number 3881);
2. Statute of the Republic of Indonesia Number 32 of the Year 2002 regarding Broadcasting (State Gazette of the Republic of Indonesia Number 139 of the Year 2002, Addendum to the State Gazette of the Republic of Indonesia Number 4252);
3. Statute of the Republic of Indonesia Number 52 of the Year 2000 regarding Provision of Telecommunications (State Gazette of the Republic of Indonesia of the Year 2000 Number 107, Addendum to the State Gazette of the Republic of Indonesia Number 3980);
4. Regulation of the Republic of Indonesia Number 53 of the Year 2000 regarding Use of the Radio Frequency Spectrum and Satellite Orbits (State Gazette of the Republic of Indonesia of the Year 2000 Number 108, Supplement to the State Gazette Number 3981);
5. Executive order of the President of the Republic of Indonesia Number 80 of the Year 2004 regarding Validation of Instruments Amending the Constitution and the Convention of the International Telecommunication Union, Marrakech, 2002;
6. Regulation of the President of the Republic of Indonesia Number 9 of the Year 2005 regarding the Status, Duties, Functions, Organisational Structure and Work Procedures of the State Ministries of the Republic of Indonesia;
7. Regulation of the President of the Republic of Indonesia Number 10 of the Year 2005 regarding Unit Organisation and Duties of the Echelon I State Ministries of the Republic of Indonesia, as amended by Regulation of the President of the Republic of Indonesia Number 15 of the Year 2005;
8. Executive Order of the Minister of Communications Number KM.20 of the Year 2001 regarding Implementation of Telecommunications Networks, as amended by Order of the Minister of Communications Number KM.29 of the Year 2004;
9. Executive Order of the Minister of Communications Number KM.21 of the Year 2001 regarding Provision of Telecommunications Services, as amended by Order of the Minister of Communications Number KM.30 of the Year 2004;
10. Regulation of the Minister of Communications and Information Number: 01/P/M.Kominfo/4/2005 of the Year 2005 regarding Organizational Structure and Work Procedures for the Ministry of Communications and Information;
11. Regulation of the Minister of Communications and Information Number: 03/P/M.Kominfo/5/2005 regarding Language Adjustments in Several Orders/Regulations of the Minister of Communications regulating Special Cargo Materials in the Postal and Telecommunications Sectors;

ISSUES A RULING:

CHAPTER I

GENERAL STIPULATIONS

Article 1
In these Regulations what is meant by:

1. Telecommunication is all transmission, dispatching and/or receipt of all information in the form of signs, signals, writing, images, voice, and sound via wired, optical, or radio systems, or other electromagnetic systems.
2. Provision of telecommunication is the activity of telecommunication provision, and services allowing telecommunications to be provided.
3. A satellite is an item orbiting in space, and circling the earth, functioning as a radio station that receives and transmits, or retransmits and/or receives, processes and retransmits radio communication signals.
4. A radio station consists of one or several pieces of transmission equipment or receiving equipment, or a grouping of transmission and receiving equipment, including all the equipment necessary in one location to maintain radio communications.
5. Radio communication is telecommunication via radio waves.
6. A satellite orbit is a path in space followed by a satellite’s centre of mass.
7. A radio frequency spectrum is a group of radio frequency bands.
8. Radio regulation consists of the stipulations of international law established by the Constitution and Convention of the International Telecommunication Union/ITU that regulates the use radio frequencies procedures, along with the registration, coordination, and notification of radio frequencies for the use of terrestrial or satellite communications systems.
9. An Indonesian satellite is a satellite that has been registered with the ITU in the name of the Indonesian Telecommunications Administration.
10. A foreign satellite is a satellite that has been registered with the ITU in the name of another nation.
11. An Indonesian satellite provider is a telecommunications provider who owns or controls a satellite that has been registered with the ITU in the name of the Indonesian Telecommunications Administration.
12. A station is one or more transmitters or receivers or a group of transmitters or receivers, including all the equipment required in one location to provide radio communication services or radio astronomy services.
13. An Earth-based station is a station located on the surface of the earth, or in part of the earth’s atmosphere that is intended for communications.
14. An Orbital station is a station located on an item beyond the earth’s atmosphere, which will pass through and/or has passed through the earth’s atmosphere.
15. The Usage Rights Fees of the radio frequency spectrum, which will henceforth be referred to as the URF of the radio frequency spectrum, are compensation for the use of radio frequencies in accordance with the licences that have been received.
16. The board of broadcast subscribers is that incorporated under Indonesian law, whose line of business is only to provide broadcast subscriber services and which is obliged to obtain prior permission for providing subscription broadcasts.
17. Landing rights are the rights given by the Director General in the name of the Minister to telecommunications providers or to the board of broadcast subscribers within the scope of cooperating with foreign telecommunications providers.
18. A Telecommunications Administration is the nation as represented by the government of that nation, within the scope of overseeing the rights and obligations of the International Telecommunications Constitution and Convention and its corresponding regulations.
19. The responsible party for Indonesian telecommunications administration is the Minister.
20. Minister is the Minister with the scope of duties and responsibilities in the telecommunications field.
21. Director General is the Director General of the Post and Telecommunications.

CHAPTER II

LICENSURE FOR SATELLITE USE

First Section

Radio Station Licences

Article 2

1. Each telecommunications provider making use of a satellite must obtain a Radio Station Licence (RSL) issued by the Director General.
2. An RSL as understood in section (1) consists of: a. an orbital station licence; or b. an earth-based station licence.
3. An RSL as understood in section (2) is subject to Usage Rights Fees for the radio frequency spectrum, in accordance with current statutes.

Second Section

Orbital Station Licences

Article 3

1. Orbital station licences are licences for the use of the radio frequency spectrum by an orbital station in the Indonesian region.
2. Orbital station licences encompass all transmission radio frequency spectra or receiving radio frequency spectra of an orbital station.

Article 4

1. The RSL for an earth-based station which transmits to an orbital station and/or receives from an orbital station is assigned to the said orbital station.
2. Every earth-based station as understood in section (1) must be registered with the Director General.
3. The Director General publishes the specific identities of earth-based stations.
4. The obligation to register as understood in section (2) is not applicable to earth-based stations receiving freely or without payment (free to air) from satellites, with the following stipulations: a. [the reception] is for private use; or b. [the reception] is not redistributed for a fee.

Article 5
An orbital station licence may be issued to:

a. providers of Telecommunications Networks;
b. providers of special telecommunications for the purpose of national defence and security; or
c. providers of special telecommunications for authorised

Government requirements.

Article 6

1. In the case of a telecommunications network provider as understood in Article 5 letter a, who is making use of a foreign satellite, an orbital station licence may be issued after the telecommunications provider obtains landing rights.
2. Landing rights as understood in section (1) are given with the following provisos: a. the said foreign satellite has undergone satellite coordination and/or does not cause harmful interference for Indonesian satellites or licensed radio stations; and b. the same opportunity is open for Indonesian satellite providers to compete and operate in the nation of origin of the said foreign satellite provider.

Article 7
The minister will periodically make public the list of orbital stations which have been licensed.

Third Section

Earth-based Station Licences

Article 8

1. Earth-based stations that transmit to satellites which do not have orbital station licences and/or receive from satellites which do not have orbital station licences must obtain earth-based station licences.
2. Earth-based station licences are in effect for each earth-based station location.
3. The obligation to obtain an earth-based station licence as understood in section (1) is not applicable to earth-based stations receiving freely or without payment (free to air) from satellites that do not have an orbital station licence, with the following stipulations:

a. [the reception] is for private use; and

b. [the reception] is not redistributed for a fee.

Article 9

1. An earth-based station licence may be issued after the telecommunications provider obtains landing rights.
2. Landing rights as understood in section (1) are given with the following provisos: a. the satellites that will be used do not cause harmful interference for Indonesian satellites or other satellites that have orbital station licences, or licensed radio stations; and b. the same opportunity is open for Indonesian satellite providers to compete and operate in the nation of origin of the said foreign satellite provider.

CHAPTER III

INDONESIAN SATELLITE PROVISION

First Section

The registration of Indonesian satellites with the International Telecommunication Union

Article 10

1. Indonesian satellite provider candidates must file their satellite registration requests with the International Telecommunication Union (ITU) to the Minister in writing.
2. Satellite registration requests as understood in section (1) must include: a. data on the radio frequency spectrum to be used; b. coverage region; c. number of transponders; d. age of satellite; e. explanatory analysis of the chosen orbit location and the system that will be used; f. a declaration of ability to carry out satellite coordination; g. a declaration of ability to follow satellite registration procedures; h. a declaration of ability to assume the costs of satellite registration established by the ITU; i. and a declaration of ability to fulfil all other conditions established by the ITU.
3. Satellite registration requests as understood in section (1) may be submitted to the ITU after undergoing evaluation.

Article 11

(1) Satellite registration follows the procedures outlined in the Radio Regulations.
(2) Satellite registration is carried out in stages:
a. Advance Publication;
b. Coordination;
c. Due Diligence; and
d. Notification.

Article 12
(1) The dossier of the satellite registration request as understood in Article 10 section (2) will be returned to the petitioner when:

a. there is found to be a lack of the conditions established by the ITU, or it is not completed with necessary data or information; or
b. there is a request for clarification in the form of additional information from the ITU.

(2) Petitioner must fulfil each request for supplemental information required by the ITU and/or the Telecommunication Administration of another nation when required to do so during the ITU satellite registration process.

(3) A request dossier as understood in section (1) may be re-filed after conditions are fulfilled within a period of time that follows ITU stipulations.

Article 13
(1) Satellite coordination as understood in Article 11 section (2) letter b must be performed by the petitioner for satellite registration for all related satellite providers, both Indonesian satellite providers as well as foreign satellite providers.

(2) Every agreement that is reached in satellite coordination as understood in section (1), must obtain the Minister’s approval.

Article 14
Satellite registration that has been completely coordinated with all related satellite providers is filed with the ITU by the Minister to attain Notification status.

Article 15

Petitioners for satellite registration who have obtained Notification status as understood in Article 14, must undergo additional coordination if there has been:

a. a modification to the system used;
b. a coordination request from another nation.

Second Section

Satellite acquisition

Article 16
(1) Indonesian satellite provider candidates must submit plans for satellite acquisition to the Minister.
(2) Plans for satellite acquisition as understood in section (1) will include:

a. a management analysis; and
b. a technical analysis.

(3) A management analysis as understood in section (2) letter a encompasses:

a. a project and business plan;
b. stock ownership outline;
c. a profile of the company manufacturing the satellite;
d. a profile of the company launching the satellite;
e. a plan for advancement and monitoring that shows progress reached towards satellite acquisition;
f. insurance.

(4) A technical analysis as understood in section (2) letter b encompasses:

a. type of satellite;
b. interference;
c. satellite construction;
d. satellite launching [systems?];
e. in-orbit tests of the satellite.

Article 17
Indonesian satellite provider candidates must periodically report any developments in progress and monitoring to the Minister, showing the progress made towards satellite acquisition at least once a year.

Third Section

Acquisition of Satellite Launch Vehicle, Satellite Launch

Operations, and Civil Responsibilities

Article 18
Acquisitions of satellite launch vehicles must be reported to the Minister

Article 19

(1) Launch activities and/or placement of satellites in orbit must be reported to the Minister.
(2) In the occurrence of a civil loss for any nation or other party resulting from launch activities and satellite operations, the satellite provider and the satellite launch vehicle supplier are responsible under civil law for dealing with civil material losses and must report them to the minister.

Article 20
After the satellite has been launched and is in operation, the Minister will coordinate with the Foreign Minister for the use of the satellite in space.

Fourth Section

End of Operation Period

Article 21
In the case of an Indonesian satellite provider candidate not using the above satellite registration, resulting in a satellite whose operation period has expired or is unable to function according to its planned use, the Minister may expropriate the management of registration and coordination of any satellite that has been registered by the Indonesian Telecommunications Administration with the ITU.

Article 22
In the case of an Indonesian satellite that has already reached the end of its normal operation period or that cannot function in accordance with its planned use (an anomaly), the telecommunications provider that owns and/or controls the satellite must:

a. remove the telecommunications satellite from its orbit location (deorbit), which will be carried out in accordance with the regulatory stipulations of current statutes; or

b. move the telecommunications satellite to another orbiting location when the satellite can be reused, according to principles of non-interference with other satellites which are operating based on the stipulations of current statutes.

Fifth Section

Satellite Orbit Usage Right Fees

Article 23
(1) Satellite Orbit Usage Right Fees (URF) are applicable to Indonesian satellite provider candidates in the process of selection used for registration of satellites that have been allocated by the ITU to Indonesia.

(2) The registration of satellites provided by the ITU as understood in section (1) encompasses:

a. the registration of satellites for orbits that have been planned for the Fixed Satellite Service with ranges in the Indonesian region, established by the ITU Radio Regulations (Appendix 30B);

b. the registration of satellites for orbits that have been planned for the Satellite Broadcast Service with ranges in Indonesian territory, established by the ITU Radio Regulations (Appendices 30 and 30A).

(3) The URF for satellite orbits must be paid in advance in accordance with current regulatory statutes.

(4) The selection method for use of satellites that have been allocated by the ITU to Indonesia is regulated only by the Minister’s Regulations.

Sixth Section

Fees for Registering Satellites with the ITU

Article 24
Indonesian satellite provider candidates are subject to satellite registration fees from the ITU, of which the amount is established by the ITU.

CHAPTER IV

SANCTIONS

Article 25
Violations of these Regulations will be subject to sanctions as specified in Statute Number 36 of the Year 1999 regarding Telecommunications.

Article 28
(1) Violations of stipulations as understood in Article 2 section (1) will be subject to administrative sanctions in the form of revocation of licences for telecommunications provision.

(2) Revocation of licences as understood in section (1) will be carried out after the sending of 3 (three) successive written warnings, each warning with a grace period of 7 (seven) working days.

CHAPTER V

TRANSITIONAL STIPULATIONS

Article 29
With the enactment of these regulations, telecommunication providers who have used fixed satellites can carry out their activities, with the stipulation that after 6 (six) months at the very latest after the enactment of these Regulations, they must be in accordance with these Regulations.

CHAPTER VI

CLOSING

Article 30
In the carrying out of these regulations, all regulatory statutes that are equivalent to and lesser than these Regulations, which regulate the provision of telecommunications via satellite, are proclaimed to remain in effect, to the extent that they do not contradict these regulations.

Article 31
These Minister’s Regulations take effect from the date of issue.

Issued in: JAKARTA

In: 2005

—————————————————-

MINISTER OF COMMUNICATIONS AND INFORMATION

SOFYAN A. DJALIL

COPIES of these regulations to be sent to:

1. Head of the Finance Investigation Board
2. Coordinating Minister in the Field of Economics;
3. Minister of Finance;
4. Minister of Industry;
5. Minister of Trade;
6. Minister of Communications;
7. Foreign Minister;
8. Interior Minister;
9. Minister of Justice and Human Rights;
10. National Secretary;
11. Attorney General of the Republic of Indonesia;
12. Head of the Spaceflight Agency;
13. The Governors and Regional Heads of Provinces throughout Indonesia;
14. The Secretary General, Inspector General, Directors General and Department heads in the Ministry of Communications and Information;
15. The Bureau Chiefs and Centre Chiefs of the Secretariat General of the Ministry of Communications and Information.

c. whereas, in connection with the premises in points a and b above, it is deemed necessary to determine Provisions on Allocation of Radio Frequency Band and Payment for Operation Permit Fee of Radio Frequency Spectrum Band for Operator of IMT-2000 Mobile Cellular Network at 2.1 GHz Radio Frequency Band with a Decree of the Minister of Communication and Information Technology;
In view of :

1. Law Number 36 of 1999 on Telecommunication (State Gazette Number 154 of 1999, Supplement to the State Gazette Number 3881);
2. Law Number 20 of 1997 on Types of Non Tax State Revenues (State Gazette Number 43 of 1997, Supplement to the State Gazette Number 3687);
3. Government Regulation Number 52 of 2000 on the Provision of Telecommunication Services (State Gazette Number 107 of 2000, Supplement to the State Gazette Number 3980);
4. Government Regulation Number 53 of 2000 on the Use of Radio Frequency Spectrum and Satellite Orbit (State Gazette Number 108 of 2000, Supplement to the State Gazette Number 3981);
5. Government Regulation of the Republic of Indonesia Number 28 of 2005 on Type and Payment of Non-tax State Revenues, which is applicable to the Ministry of Communication and Information Technology (State Gazette Number 57 of 2005, Supplement to the State Gazette Number 4511;
6. Presidential Regulation of the Republic of Indonesia Number 9 of 2005 on the Position, Duty, Function, Organizational Structure, Work Procedure of State Ministry of the Republic of Indonesia;
7. Presidential Regulation of the Republic of Indonesia Number 10 of 2005 on the Organization Unit and Duty of Echelon I within State Ministries of the Republic of Indonesia as amended with the Presidential Regulation of the Republic of Indonesia Number 15 of 2005;
8. Decree of the Minister of Communication Number KM.31 of 2003 on Indonesian Regulatory Authority of Telecommunication Sector as amended with the Regulation of the Minister of Communication and Information Technology Number 25/P/M. Kominfo/11/2005;
9. Regulation of the Minister of Communication and Information Technology Number 01/P/M.Kominfo/4/2005 on the Organizational Structure and Work Procedure of the Ministry of Communication and Information Technology;
10. Regulation of the Minister of Communication and Information Technology Number 03/P/M.Kominfo/5/2005 on the Changes of Terms in Some Decrees/Regulations of the Minister of Communication that govern Special Materials in the field of Post and Telecommunication;
11. Regulation of the Minister of Communication and Information Technology Number 17/PER/M.KOMINFO/10/2005 on the Licensing and Operating Procedure of the Use of Radio Frequency Spectrum;
12. Regulation of the Minister of Communication and Information Technology Number 19/PER/M.KOMINFO/10/2005 on the Implementing Guideline on Type and Payment of Non-tax State Revenues from Operation Fee of Radio Frequency;
13. Regulation of the Minister of Communication and Information Technology Number 01/PER.KOMINFO/1/2006 on the Re-arrangement of 2.1 GHz Radio Frequency Band for the Provision of IMT-2000 Mobile Cellular Network;
14. Regulation of the Minister of Communication and Information Technology Number 02/PER.KOMINFO/1/2006 on the Selection of Operator of IMT-2000 Mobile Cellular Network at 2.1 GHz Radio Frequency Band;
15. Regulation of the Minister of Communication and Information Technology Number 04/PER/M.KOMINFO/01/2006 on the Tender Procedure of 2.1 GHz Radio Frequency Spectrum Band for the provision of IMT-2000 Mobile Cellular Network;
16. Regulation of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006 on the Provisions on the Use of 2.1 GHz Radio Frequency Band for the Provision of Mobile Cellular Network;
17. Decree of the Minister of Communication and Information Technology Number 03/KEP/M.KOMINFO/01/2006 on Business Opportunity for the Provision of Third Generation Mobile Cellular Network with National Coverage;
18. Decree of the Minister of Communication and Information Technology Number 07/KEP/M.KOMINFO/01/2006 on Stipulation of Tender Documents for the purpose of Selection of Operator of IMT-2000 Mobile Cellular Network at 2.1 GHz Radio Frequency Band.
19. Decree of the Minister of Communication and Information Technology Number 19/KEP/M.KOMINFO/02/2006 on Decision on Winner of Selection of IMT-2000 Mobile Cellular Network Operator at 2.1 GHz Radio Frequency Band.

DECIDES:

To proclaim : DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY ON TERMS OF PROVISIONS ON ALLOCATION OF RADIO FREQUENCY BAND AND PAYMENT FOR OPERATION PERMIT FEE OF RADIO FREQUENCY SPECTRUM BAND FOR OPERATOR OF IMT-2000 MOBILE CELLULAR NETWORK AT 2.1 GHz RADIO FREQUENCY BAND.

CHAPTER I

FREQUENCY DIVISION DUPLEX (FDD)

Article 1
PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA (formerly PT CYBER ACCESS COMMUNICATIONS) and PT NATRINDO TELEPON SELULER shall return 2 x 5 MHz respectively to the Government from 2 x 10 MHz of FDD radio frequency at 2.1 GHz radio frequency band that has been allocated, with the following break-down:

a. PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA shall return radio frequency band block of 1925-1930 MHz paired with 2115-2120 MHz.
b. PT NATRINDO TELEPON SELULER shall return radio frequency band block of 1935-1940 MHz paired with 2125-2130 MHz.

Article 2
By the return of radio frequency from PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER as referred to in Article 1, PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA, PT NATRINDO TELEPON SELULER, PT TELEKOMUNIKASI SELULAR, PT EXCELCOMINDO PRATAMA, Tbk. and PT INDOSAT, Tbk. shall be allocated 1 (one) block of 2 x 5 MHz of FDD mode at 2.1 GHz radio frequency band.

Article 3
Provisions on payment for operation permit fee for radio frequency spectrum band for PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER shall be determined

as follows:

a. payment for up front fee for allocation of FDD radio frequency of 2 x 5 MHz shall be made in a lump sum on not later than January 31, 2008 amounting to Rp 320 billion (three hundred twenty billion Rupiah) x (1 + 2006 BI Rate) x (1 + 2007 BI Rate);

b. payment for Operation Fee (BHP) of FDD radio frequency band of 2 x 5 MHz shall be made each year according to the provisions on operation permit fee payment scheme for radio frequency spectrum band as regulated in the Regulation of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006, provided that payment for Operation Fee of radio frequency spectrum band of 2006 shall be made within not later than 30 working days as of the promulgation date hereof;

c. If within 30 working days as of the promulgation date hereof, PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER fail to pay Operation Fee of 2006 radio frequency band for FDD allocation, the allocation shall not be used and shall be returned to the government.

d. If PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER return FDD radio frequency band after the period as referred to in point c, the liability to pay up front fee as referred to in point a shall apply.

Article 4
1 (one) block of 2 x 5 MHz of FDD mode at 2.1 GHz radio frequency band shall be reserved for PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA, PT NATRINDO TELEPON SELULER, PT TELEKOMUNIKASI SELULAR, PT EXCELCOMINDO PRATAMA, Tbk., and PT INDOSAT Tbk. respectively, and the allocation thereof shall be performed through evaluation process after January 1, 2008.

Article 5
The basis of evaluation process for allocation of additional 1 (one) block of 2.1 GHz radio frequency band as referred to in Article 4 shall be as follows:

a. Tender awardee (PT TELEKOMUNIKASI SELULAR, PT EXCELCOMINDO PRATAMA, Tbk., and PT INDOSAT) has settled the payment for operation permit fee for radio frequency spectrum band to the Government and fulfilled each development commitment that is delivered during the selection process of operator of IMT-2000 mobile cellular network at 2.1 GHz radio frequency band;

b. PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER has settled the payment for operation permit fee for radio frequency spectrum band and fulfilled development commitment based on the development plan approved by the Government.

Article 6
The amount of operation permit fee for radio frequency spectrum band for allocation of additional radio frequency band as referred to in Article 4 shall be determined based on

3G development level and telecommunication market condition in those days, provided that the fee value shall be maximally equal to the lowest value of 3G tender result, as provided in the Regulation of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006.

CHAPTER II

TIME DIVISION DUPLEX (TDD)

Article 7
For the use of TDD radio frequency band of 1 x 5 MHz, PT HUTCHINSON CP TELECOMMUNICATIONS INDONESIA (2010-2015 MHz) and PT NATRINDO TELEPON SELULER (2015-2020 MHz), shall be imposed by operation permit fee for radio frequency spectrum band as regulated in the Regulation of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006, namely, up front fee and operation fee for radio frequency band amounting to a half of up front fee and operation fee for radio frequency band imposed on operator of mobile cellular network at 2.1 GHz frequency band of FDD mode for each block.

Article 8
Payment for operation permit fee for TDD radio frequency spectrum band as referred to in Article 7 shall be made under the following provisions:

a. payment for up front fee for allocation of TDD radio frequency of 1 x 5 MHz shall be made in a lump sum on not later than January 31, 2008 amounting to Rp 160 billion (one hundred sixty billion Rupiah) x (1 + 2006 BI Rate) x (1 + 2007 BI Rate);

b. payment for Operation Fee (BHP) of TDD radio frequency band of 1 x 5 MHz shall be made each year according to the provisions on operation permit fee payment scheme for radio frequency spectrum band as regulated in the Regulation of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006, provided that payment for Operation Fee of radio frequency band of 2006 shall be made within not later than 30 working days as of the promulgation date hereof.

Article 9
If within 30 (thirty) working days as of the promulgation date hereof, PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA, and PT NATRINDO TELEPON SELULER fail to pay Operation Fee of 2006 radio frequency band for TDD allocation as referred to in Articles 7 and 8, the allocation shall not be used and shall be returned to the government.

Article 10
If PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER return the radio frequency band after the period as referred to in Article 9, the liability to pay up front fee as referred to in Article 8 point b shall apply.

CHAPTER III

SANCTIONS

Article 11
If until the deadline of January 31, 2008 as referred to
in Article 3 point a and Article 8, PT HUTCHISON CP TELECOMMUNICATIONS INDONESIA and PT NATRINDO TELEPON SELULER fail to fulfill payment liability for allocation of frequency for FDD and or TDD, besides annulling the allocation of frequency for FDD and or TDD without any compensation in any form whatsoever, the Government shall also impose sanctions according to the prevailing legislation, especially the provisions in Non Tax State Revenue Law and those stipulating that the debts to the state shall constitute the debtors’ liability that must be given priority.

CHAPTER IV

TRANSITIONAL PROVISION

Article 12
Any provisions in Decrees/Regulations of the Minister concerning the allocation of radio frequency band and payment for operation permit fee for radio frequency spectrum band for operator of IMT-2000 mobile cellular network at 2.1 GHz radio frequency band, including the implementation decisions/ regulations thereof before the promulgation date hereof, shall remain effective provided not contradicting with this Decree.

CHAPTER V

CLOSING

Article 13
This regulation shall enter into full force and effect as of the promulgation date.

Promulgated in: Jakarta

On : March 27, 2006

MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY,

SOFYAN A. DJALIL

CC:
1. President of the Republic of Indonesia;
2. Vice President of the Republic of Indonesia;
3. Chairman of Finance Audit Board;
4. Coordinating Minister for Economics;
5. Minister of Finance;
6. Minister of Law and Human Rights;
7. State Secretary;
8. The Attorney General of the Republic of Indonesia;
9. Chairman of Corruption Elimination Commission;
10. Secretary General, Inspector General, Directors General and Departments Heads within the Ministry of Communication and Information Technology;
11. Bureau Heads and Center Heads within the Secretariat General of the Ministry of Communication and Information Technology

From:Postel