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AMENDMENT TO GOVERNMENT REGULATION NO. 36/1977 ON
THE TERMINATION OF FOREIGN BUSINESS ACTIVITIES IN THE
TRADE SECTOR AS ALREADY AMENDED THE LATEST BY
GOVERNMENT REGULATION NO. 41/1997
(Government Regulation No. 15/1998, dated January 21, 1998)
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Considering :
a. that within the framework of national economic reforms and restructuring. as
well as creating increasingly fair business competition, it is deemed
necessary to grant opportunity to foreign investment companies set up under
Law No. 1 /1967 to operate as retailers;
b. that for this purpose it is necessary to improve Government Regulation No.
36/1977 on the termination of foreign business activities In the trade sector as
already amended the latest by Government Regulation No. 41/1997.
In view of :
1. Article 5 paragraph (2) of the Constitution of 1945;
2. Government Regulation No. 36/1977 on the termination of foreign business
activities in the trade sector as already amended the latest by Government
Regulation No. 41/1997.
DECIDES:
To stipulate:

GOVERNMENT REGULATION CONCERNING AMENDMENT TO
GOVERNMENT REGULATION NO. 36/1977 ON THE TERMINATION
OF FOREIGN BUSINESS ACTIVITIES IN THE TRADE SECTOR AS
ALREADY

AMENDED

REGULATION NO. 41/1997

THE

LATEST

BY

GOVERNMENT

Article 1
To amend the provisions in Article 3 paragraphs (4) and (5) of Government
Regulation No. 36/1977 on the termination of foreign business activities in the

trade sector as already amended the latest by Government Regulation No.
41/1997, so that they become paragraph (4), paragraph (5), paragraph (6) and
paragraph (7), which read as the following:
Article 3
(4)

(5)
(6)

(7)

Companies established under foreign capital investments in the production
sector shall be allowed to sell their products to end consumers through
foreign investment companies especially set up as retailers.
The foreign investment companies especially set up as retailers as meant in
paragraph (4) shall be allowed to sell goods of other companies.
The foreign investment companies especially set up as retailers as meant in
paragraph (4) shall not be allowed to act concurrently as
distributors/wholesalers.
Any violation of the trading activities as stipulated in this government

regulation shall have the consequence of business licence revocation
pursuant to the relevant laws in force. '
Article 11

This government regulation shall come into force as from March 31, 1998.
For public cognizance, this government regulation shall be promulgated by
publishing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta
Promulgated in Jakarta

On January 21, 1998

On January 21, 1998

THE PRESIDENT OF THE REPUBLIC

THE MINISTER/STATE

OF INDONESIA,

SECRETARY,
Sgd
MOERDIONO

sgd
S0EHART0

STATUTE BOOK OF THE REPUBLIC OF INDONESIA 1998 NUMBER
25 AMENDMENT TO GOVERNMENT REGULATION NO. 36/1977 ON
THE TERMINATION OF FOREIGN BUSINESS ACTIVITIES IN THE
TRADE SECTOR AS ALREADY AMENDED THE LATEST BY
GOVERNMENT REGUIATION NO. 41/1997
(Government Regulation NO. 15/1998 dated January 21, 1998)
(Continued-from Business News No. 6115 page 15A)
ELUCIDATION
ON
GOVERNMENT REGULATION NO. 15 / 1998
CONCERNING
AMENDMENT TO GOVERNMENT REGULATION NO. 36/1977
ON THE TERMINATION OF FOREIGN BUSINESS ACTIVITIES

IN THE TRADE SECTOR AS ALREADY AMENDED THE LATEST BY
GOVERNMENT REGULATION NO. 41/1997
GENERAL
Within the framework of national economic reforms and restructuring and further
increasing the smooth flow of goods as well as creating increasingly fair business
competition.

The government deems it necessary to further enhance the

participation of foreign capital investment companies in the domestic sale of
goods.
In this connection, it is deemed necessary to amend Government Regulation No.
36/1977 on the termination of foreign business activities in the trade sector as
already amended the latest by Government Regulation No. 41/1997.

ARTICLE BY ARTICLE
Article 1
Sufficiently clear
Article 11
Sufficiently clear

SUPPLEMENT TO STATUTE BOOK OF THE REPUBUC OF
INDONESIA NO. 3734.