A DECREE OF THE MINISTER OF FINANCE NUMBER 57/KMK.017/1996 CONCERNING APPRAISALS
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1 ANNEX IV.15 A DECREE OF THE MINISTER OF FINANCE NUMBER 57/KMK.017/1996 CONCERNING APPRAISALS
2 A DECREE OF THE MINISTER OF FINANCE NUMBER 57/KMK.017/1998 CONCERNING PUBLIC APPRAISALS MINISTER OF FINANCE OF, Considering: a. that in increased development activity, it is necessary to have efficiency in utilizing and allocating funds, that fair appraisals shall be one of infrastructures to improve said efficiency, therefore it is necessary to have mentoring and development on appraisals as well as for providing protection to professions and users; b. that it is considered necessary to enact concerning Appraisals with a Decree of the Minister of Finance; In view of: 1. Law Number 1 Year 1995 concerning Limited Corporation (State Gazette of the Republic of Indonesia Year 1995 Number 13); (Supplement to State Gazette of the Republic of Indonesia Number 3587); 2. Law Number 8 Year 1995 concerning Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64); (Supplement to State Gazette of the Republic of Indonesia Number 3608); 3. The Presidential Decree Number 44 Year 1974 concerning Basics of Department Organizational Structure as several amended and added lastly with the Presidential of the Republic of Indonesia Number 58 Year 1993 concerning Department Organizational Structure; 4. The Presidential Decree Year 1993 concerning Establishment of Development Cabinet VI; 5. A Decree of the Minister of Finance Number 1254/KMK.01/1992 Year 1992 concerning Organizational Structure and Working Procedure of Directorate General of Financial Institution. To enact: HAS DECIDED, A DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA CONCERNING APPRAISALS In this Law the following definitions apply: CHAPTER I Article 1 GENERAL PROVISIONS a. Appraising shall be a working process of a public appraisal in providing estimations and opinions on economic values of one property in certain period based on Indonesian Appraising Standard;
3 b. An appraisal shall be a person with his/her expertise performing appraising activity; c. Indonesian Appraising Standards shall be basic guidelines on procedure and practice of appraising activity; d. Code of Ethic of Indonesian Appraisal shall be moral guidelines for appraisals in performing appraising activity; e. Appraising Services shall be business sector in appraising activity; f. An Association shall be Indonesian Appraisals Profession Society (MAPPI); g. Performance Report shall be annual report prepared by Appraising Services; h. Director General shall be the Director General of Financial Institutions. CHAPTER II TYPES OF APPRAISAL SERVICES Article 2 (1) Appraising Services shall be in form of a. Individual Business; b. Joint Business; c. Limited Corporation. (2) Party responsible and the Chairman of an Individual Business as referred to in paragraph (1) letter a shall be hold by an Appraisal concerned. (3) Party responsible in a Joint Business as referred to in paragraph (1) letter b shall be hold by 2 (two) appraisals or more who each is an associate and one of them shall act as the chairman of associates. Article 3 (1) Name of Appraising Services in form of an individual business shall use the name of an appraisal concerned. (2) Name of Appraising Services in form of a joint business shall use the name of the Chairman of Associates and Associate, maximum 3 names. (3) The Chairman of Associates and Associate whose names mentioned in Appraisal Services in form of a joint business as referred to in paragraph (2) who are no longer active due to resignation, death or other reasons may remain to be kept, unless a person concerned is imposed by sanctions based on this decision. Article 4 Appraising Services may enter into agreement with foreign appraising businesses in form of a corresponding, technical cooperation, or other affiliates based on prevailing laws and regulations. CHAPTER III LICENSING Part One Appraisal Article 5 (1) An appraisal must first obtain a license from the Minister.
4 (2) In obtaining a license as referred to in paragraph (1), an appraisal must comply with requirement as the following: a has domicile within territory of Indonesia; b. has graduated at minimum from Bachelor Decree from Public University or similar/accredited university based on prevailing regulations applicable for Functional Position of Governmental Appraisal having a minimum rank of Penata Muda (Type III/a); c. as a member of Association; d. has evidence on passing profession examination issued by an Association; e. has professional experiences with good reputation in conducting appraising evidenced with a reference from the head of Appraisal Services or Government Institution; f. For a person who holds a Master Decree in appraising or alike, requirement on professional experiences shall be minimum 1 (one) year with good reputation in performing appraising evidenced with a reference from the head of appraisal services or government institution. Part Two Appraising Services Article 6 (1) Appraising Services as referred to in Article 2 paragraph (1) letters a and b, must first obtain a license from the Minister. (2) Appraising Services as referred to in Article 2 paragraph (1) letter c, must have at least one appraisal as the Director. (3) In obtaining a license as referred to in paragraph (1), an appraising service must have: a. the establishment deed for the appraising services in form of a joint business; b. minimum 2 appraisal assistants; c. Tax registry number (NPWP); d. Databases that may support its business. Article Appraising Services shall have scopes of appraising activity, and may also perform other activities related with appraising activity. Part Three Branch Office of Appraisal Article 8 (1) Appraising Services as referred to in Article 2 paragraph (1) letters a and b, may open its branch offices throughout Indonesia with requirements as the following: a. the Head of Appraisal Branch Office must be an appraisal; b. shall comply with requirements as referred to in Article 6 paragraph (3) letters b and d. (2) Opening branch offices of appraisal as referred to in paragraph (2) must first obtain a license from the Minister. CHAPTER IV
5 MENTORING AND SUPERVISION Article 9 (1) Mentoring and supervision against appraisals and appraising services as referred to in Article 2 paragraph (1) letters a and b, shall be conducted by the Minister. (2) Mentoring and supervision against appraisals working with government shall be conducted by such institution based on prevailing laws and regulation. (1) Appraisals must guide to: Article 10 a. Indonesian Appraising Standards; b. Code of Ethic of Indonesian Appraisals; c. Other prevailing laws and regulations. (2) Indonesian Appraising Standards and Code of Ethic of Indonesian Appraisals as referred to in paragraph (1) letters and b, shall be determined by an Association. Article 11 In performing appraising activity, an appraisal must have or work with the appraising services or government institution. Article 12 Appraising result reports published by the appraising services or government institution must be signed by an appraisal. Article 13 An appraisal must be a member of an Association and shall participate in Capacity Building Program based on provisions of an Association. Article 14 The appraising services must report in writing to the Director General for Appraisals who are not active due to a resignation, death or other reasons within no later than 1 (one) months as from a person concerned is no longer active. Article 15 The appraising services that is moved its address and or domicile must report in writing to the Director General within no later than 1 (one) months as from its change. Article 16 Within no later than end of March, the appraising services must submit its quarterly report previously to the Director General. Article 17 The Appraising services entering into an agreement with foreign appraisals must report to the Director General: a. information on foreign expert hired within no later than 30 (thirty) days after such agreement is executed; b. information on cooperation program realization within no later than in March for previous quarter report. Article 18 (1) The Director General may appoint an employee to conduct direct inspection against appraisals and or the appraising services.
6 (2) Appraisal and the appraising services inspected must show book records, notes, documents or provide information required in conducting inspection to the examiner. (3) The examiner must keep the result of inspection secret to other party. CHAPTER V SANCTION Article 19 (1) The Minister may impose administrative sanctions to an appraisal and the appraising services violating the provision of this Decree. (2) Administrative sanctions as referred to in paragraph (1) shall be: a. writing warning; b. business license revocation. Article 20 (1) An appraisal violating the provisions as referred to in Articles 10, 13, and 18 paragraph (2) shall be subject to administrative sanctions as referred to in Article 19 paragraph (2). (2) The appraising services violating the provisions as referred to in Articles 14, 15, 16, 17 and 18 paragraph (2) shall be subject to administrative sanctions as referred to in Article 19 paragraph (2). Article 21 An appraisal and the appraising services shall be imposed with administrative sanctions in form of a license revocation if: a. within 3 (three) years continuingly does not perform activity; b. has obtain writing warning for 3 (three) times. Article 22 Business license revocation shall be conducted in written and published in mass media. CHAPTER VI TRANSITIONAL PROVISION Article 23 An individual who has been performing appraising activity prior this decree is enacted may remain to perform his/her business, and must adjust with the provisions of this Decree, unless requirement as referred in to Article 5 paragraph (2) letter b, within no later than 4 (four) years as from this decree is enacted. CHAPTER VII CLOSING PROVISION Article 24 The implementation of this decree shall be further determined by the Director General. Article 25 This Decree of the Minister of Finance shall come into force as of the date of promulgation. For public cognizance, this Law shall be announced by placing it in the Statute Book of the Republic of Indonesia.
7 Enacted in Jakarta On February 6, 1996 MINISTER OF FINANCE SIGN MAR IE MUHAMMAD
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