DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER: 29/KEP/M.KOMINFO/03/2006 ON THE TERMS OF

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1 DECREE OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER: 29/KEP/M.KOMINFO/03/2006 ON THE 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 BY THE GRACE OF GOD ALMIGHTY THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY, Considering : a. whereas the Regulation of the Minister of Communication and Information Technology Number 07/PER/M.KOMINFO/2/2006 has regulated provisions on mobile cellular network operator at 2.1 GHz radio frequency band that already owns operation permit for mobile cellular network shall be imposed by Up Front Fee and Telecommunication Operation Fee (BHP) of radio frequency band; b. whereas furthermore, allocation of radio frequency band for the provision of IMT-2000 mobile cellular network at radio 2.1 GHz radio frequency band, shall refer to the arrangement result of 2.1 GHz radio 1

2 frequency band as regulated in the Regulation of the Minister of Communication 01/PER/ M.KOMINFO/01/2006; 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); 2

3 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 3

4 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 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 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 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 19/PER/M.KOMINFO/10/2005 on the 4

5 Implementing Guideline on Type and Payment of Non-tax State Revenues from Operation Fee of Radio Frequency; 13. Regulation of the Minister of Communication 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 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 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 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; 5

6 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 MOBILE CELLULAR NETWORK AT 2.1 GHz RADIO 6

7 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 MHz paired with MHz. b. PT NATRINDO TELEPON SELULER shall return radio frequency band block of MHz paired with 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 7

8 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 ( BI Rate) x ( 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 8

9 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, 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 9

10 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 ( MHz) and PT NATRINDO TELEPON SELULER ( MHz), shall be imposed by operation permit fee for radio frequency spectrum band as regulated in the Regulation of the Minister of Communication 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 ( BI Rate) x 10

11 ( 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 11

12 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. 12

13 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. 13

MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY REPUBLIC OF INDONESIA REGULATION OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY

MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY REPUBLIC OF INDONESIA REGULATION OF THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGY NUMBER: 01/PER/M.KOMINFO/1/2006 ON THE TERMS OF ARRANGEMENT