[H O M E]

DECREE OF THE DIRECTOR-GENERAL FOR OIL & NATURAL GAS

Number: 10K/34/DDJM/1998
ON
GUIDELINES AND PROCEDURES FOR MANDATORY REGISTRATION
OF LUBRICANTS SOLD IN THE COUNTRY

THE DIRECTOR-GENERAL FOR OIL & NATURAL GAS

Considering: that as a follow-up to the Decree of the Minister for Mining and
Energy Number 019K/34/M.PE/1998 dated 12 January 1998, it is
deemed necessary to regulate and determine the guidelines and
procedure for mandatory registration of lubricants that are sold in
the country, in a decree issued by the Director-General for Oil and
Natural Gas;

In view of 1. Law Number 44 Prp Year 1960 (State Gazette of 1960 Number
133, Supplement to State Gazette Number 2070;
2. Law Number 8 Year 1971 (State Gazette of 1971 Number 76,
Supplement to State Gazette Number 2971;
3. Presidential Decree Number 18 Year 1988 dated 22 June 1988;
4. Presidential Decree Number 374/M Year 1995 dated 23
November 1995;
5. Regulation of the Minister of Mining and Energy Number
05P/34/M.PE/1988 dated 1 September 1988;
6. Regulation of the Minister of Mining and Energy Number
0223 P/43/M.PE/1991 dated 13 February 1991;
7. Decree of the Minister of Mining and Energy Number
019K/34/M.PE/1998 dated 12 January 1998;

HAS DECIDED:

To stipulate: THE DECREE OF THE DIRECTOR-GENERAL FOR OIL AND

NATURAL GAS ON THE GUIDELINES AND PROCEDURE FOR
MANDATORY REGISTRATION OF LUBRICANTS SOLD IN THE
COUNTRY.

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 CHAPTER I
GENERAL PROVISIONS

Article 1
(1) All definitions or meanings used in this decree are the definitions or meanings
as meant in Article 1 of the Decree of the Minister of Mining and Energy
Number 019K/34/M.PE/1998 dated 12 January 1998.
(2) In addition to what is determined in paragraph (1) above, in this Decree what is
meant by :
a. Packaging is a container having certain dimensions bearing the identity of
the product, the name of the company and the purpose of its use;
b. Director, is the Director for Processing and Marketing at the Directorate
General.

Article 2
Before submitting the application for a Registered Lubricant Number, the Company
shall be obliged to acquire all necessary licenses or permits from other relevant
agencies.

CHAPTER II
PROCEDURE FOR APPLYING FOR LICENSE/PERMIT

Article 3
(1) The Company must submit an application to the Director-General via the
Director in order to obtain a Registered Lubricant Number, enclosing the
following:
a. Technical data consisting of:
· Sources of obtaining the lubricant;
· Specifications of the lubricant as declared in a certificate of quality;
· The amount of lubricants produced, packaged or imported;
· Name and trademark of the lubricant produced;
· Shape and content of the packaging.
b. Administrative data consisting of:
· The Company Articles of Incorporation, including its amendments;
· Bio data of the Company;
· Certificate of Mandatory Registration of the Company;
· Trading License (Surat Izin Usaha Perdagangan /SIUP)
· Letter of Domicile;

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 · Letter of Appointment from the manufacturer of the lubricant;
· Letter of Appointment for the agency and or a cooperation contract
with the manufacturer, in the event the Company obtains lubricants
from a foreign manufacturer overseas.
(2) If deemed necessary the Director may request more complete technical data and
administrative data.
(3) At the latest within 14 (fourteen) work days after the date of receiving the
request as meant in paragraph (2), the Company shall be obliged to provide the
technical data and administrative data required.

Article 4
(1) When the application received is complete and correct, the Director shall
conduct a technical and administrative investigation.
(2) In the framework of carrying out the technical investigation, the Director shall
appoint an officer from the Directorate General to collect samples of lubricants.
(3) The collection of samples of lubricants as meant in paragraph (2) shall include
the following:
a. Lubricants locally produced, at the manufacturing factories;
b. Lubricants already imported, at the port of import;
c. Lubricants that will be imported, shipped by the Company concerned;
d. Lubricants which are packaged, at the place of packaging.
(4) The procedure and provisions for collecting samples of the lubricants as
referred to in paragraph (3) shall be in accordance with the fixed procedure.

Article 5
(1) The samples of lubricants as referred to in Article 4 shall be sent by the officer of
the Directorate General to a laboratory to undergo examination and tests.
(2) The samples of lubricants as mentioned in paragraph (1), shall be subject to
laboratory examination and testing with regard to their specifications, by a
physical properties test and if considered necessary by a performance level test.
(3) For types of lubricants produced with new names, the examination and testing
by the laboratory shall consist of a physical properties test and performance
level test.
(4) At the latest within 21 (twenty-one) work days after receiving the lubricant
samples, the Examining Laboratory should have completed the examination or
testing.
(5) The Examining Laboratory shall deliver the results of examination or testing to
the Director General via the Director with a copy to the Company, including its
recommendations.

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 Article 6
(1) If the results of the technical and administrative examination meet the
requirements, the Director-General via the Director, shall approve the
application and issue a Registered Lubricant Number in the form of a certificate
and record this in the General Registry of Lubricants.
(2) In the event the application as meant in Article 3 is not approved, the Director-
General via the Director, shall notify the Company, stating the reasons for the
rejection.

CHAPTER III
PROCEDURE FOR INCLUDING THE REGISTERED LUBRICANT NUMBER

Article 7
(1) Having received the Registered Lubricant Number as meant in Article 6
paragraph (1), the Company shall be obligated to include this number on each
packaging.
(2) The inclusion of the Registered Lubricant Number as meant in paragraph (1)
above shall be in accordance with the following:
a. For lubricants produced and or packaged in the country, the number
shall be printed on the outer side of the packaging;
b. For lubricants imported and or packaged in a foreign country, the number
shall be placed on the outer side of the packaging

Article 8
The addition of the Registered Lubricant Number must be clearly visible and
readable, but not easy to remove, become damaged or erased.

Article 9
(1) For Bulk Lubricants, a copy of the Registered Lubricant Number certificate must
always be included in the circulation and or marketing of the said lubricant.
(2) A copy of the Registered Lubricant Number as meant in paragraph (1) must
state the amount of lubricant which is sold/purchased and validated by the
buyer and the seller.

Article 10
(1) The Director shall appoint and assign an officer from the Directorate General to
keep the General Register of Lubricants and record the Registered Lubricant
Numbers.
(2) The Director shall examine the General Register of Lubricants periodically, that
is once in every 3 (three) months or at any time as may be deemed necessary.
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 CHAPTER IV
PROCEDURE FOR CONTROL OVER REGISTERED LUBRICANTS

Article 11
Based on the General Register of Lubricants, the Director shall appoint an officer from
the Directorate General to control the lubricants that have obtained a Registered
Lubricant Number.

Article 12
The control over lubricants as referred to in Article 11 shall be implemented by taking
samples of the lubricants and monitoring the existence of the companies.

Article 13
(1) The taking of lubricant samples as referred to in Article 12 shall be carried out at
the location of production or packaging, the warehouse, port of import, and or
in the market.
(2) The taking of lubricant samples as meant in paragraph (1) shall be done
periodically, that is once in every 6 (six) months, or at times deemed necessary
in order to undergo examination and testing of specifications in the Examining
Laboratory by the physical properties test and if necessary by the performance
level test.
(3) For types of lubricants produced with new names, the examination and testing
by the Examining Laboratory shall consist of a physical properties test and
performance level test.
(4) The procedure and provisions for collecting samples of the lubricants as
referred to in paragraph (1) shall be in accordance with the fixed procedure.

Article 14
(1) The samples of lubricants as referred to in Article 13 shall be sent by the officer
of the Directorate General to the Examining Laboratory.
(2) At the latest within 21 (twenty-one) work days after receiving the lubricant
samples, the Examining Laboratory should have completed the examination or
testing of specifications by the physical properties test and when considered
necessary by the performance level test.
(3) The Examining Laboratory shall deliver the results of the examination or testing
to the Director with the results of evaluation.

Article 15
(1) In the event the results of the examination or testing by the Examining
Laboratory do not meet the fixed specifications, then the Director-General shall
revoke the Registered Lubricant Number and notify the Company.

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(2) The Director shall order the officer of the Directorate General to erase/delete the
Registered Lubricant Number from the General Register of Lubricants.
(3) After receiving the notification as mentioned in paragraph (1), at the latest
within 60 (sixty) days the Company shall be obliged to withdraw all its
lubricants from circulation and or the market.

Article 16
(1) The Director may assign an officer from the Directorate General to conduct
monitoring on the existence of the Company.
(2) If the result of monitoring as meant in paragraph (1) reveals that the Company
is not in accordance with the administrative data submitted, the Director-
General on recommendation from the Director may revoke the Registered
Lubricant Number and shall notify the Company of the decision.
(3) The Director shall order the officer of the Directorate General to erase/delete the
Registered Lubricant Number from the General Register of Lubricants.
(4) After receiving the notification as mentioned in paragraph (1), at the latest
within 60 (sixty) days the Company shall be obliged to withdraw all its
lubricants from circulation and or the market.

CHAPTER V
PROCEDURE FOR REPORTING

Article 17
(1) The Company shall be obliged to report to the Director regarding the
company’s annual plan of activities at the latest 3 (three) months before the next
budget year of the Company.
(2) Upon the closing of the budget year, the Company shall prepare and submit a
report regarding the realization of production activities, packaging and or
import of lubricants once in every 6 (six) months.

CHAPTER VI
TRANSITIONAL PROVISIONS

Article 18
Those companies that are already producing and or packaging and or importing and
or distributing lubricants shall be obliged to submit an application for a Registered
Lubricant Number in conformity with this Decree at the latest 3 (three) months after
the date of enactment of this Decree.

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 Article 19
(1) Those lubricants already in distribution and or in the market before the
enactment of this Decree, can continue to be circulated and or marketed up to 1
(one) year from the date of enactment of this Decree.
(2) Upon the expiry of the time period as mentioned in paragraph (1) above, the
provisions as given in this Decree shall become effective.

CHAPTER VII
OTHER PROVISIONS AND CLOSING

Article 20
All costs that may arise in connection with the application for a Registered Lubricant
Number and the implementation of supervision and control over the distribution of
lubricants shall be borne by the Company concerned in accordance with the
provisions of the current laws and regulations in effect.

Article 21
Guidance and supervision on this Decree shall be given by the Director.

Article 22
This Decree shall become effective on the date of its enactment.

Enacted in : Jakarta
On : 26 January1998

Director- General for Oil & Natural Gas

Sgd

Soepraptono Soeleiman

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