On 28 May, the Ministry of Trade (MOT) issued a more comprehensive regulation on post-border import by enacting MOT Regulation No. 51 of 2020 on Post-Border Import Inspection and Supervision (‘MOT Regulation 51’). When Regulation 51 comes into effect on 28 August, the 2018 post-border import supervision policy[1] will no longer prevail.
The Indonesian government has expanded the tax incentives given to taxpayers that are affected by COVID-19. Some taxpayers that were not entitled to tax incentives under Minister of Finance Regulation No. 44/PMK.03/2020 (“MOF Regulation 44”) may now enjoy those tax incentives under Minister of Finance Regulation No. 86/PMK.03/2020 (“MOF Regulation 86”). MOF Regulation 86, which revokes MOF Regulation 44, came into force on 16 July.
One of the preliminary methods to check if a person has been infected with COVID-19 is a rapid antibody test. In addition, under COVID-19 Task Force Circular Letter No. 7 of 2020 currently, a rapid antibody or PCR (Polymerase Chain Reaction) test result is a requirement for anyone taking public transportation for domestic (interprovincial or intercity) and international travel in Indonesia. Although the accuracy of rapid antibody tests is questionable, the rapid antibody test is the easiest and quickest way to identify COVID-19 exposure.
Because it is easy to use, there has been high demand for rapid antibody tests. To ensure a reasonable price, on 6 July, the Directorate General of Healthcare Services (“DGHS”) (i.e., a division under the Ministry of Health (“MOH”) issued Circular Letter No. HK.02.02/I/2875/2020 on the maximum tariff of Rapid Antibody Tests (“DGHS Circular Letter 02”).
DGHS Circular Letter 02 is an implementing rule of MOH Decision No. HK.01.07/MENKES/247/2020 on Guidelines on Prevention and Control of Corona Virus Diseases (COVID-19).
The Minister of Finance has issued Minister of Finance Regulation Number 67/PMK.03/2020 (‘MoF 67/2020’) on the Provisions of Value Added Tax Or Value Added Tax And Sales Tax on Luxury Goods, as well as Land And Building Tax Facilities In Upstream Oil And Gas Business Activities Under Gross Split Production Sharing Contract.
MoF67/2020 provides tax facilities during the exploration and exploitation phases until the commencement of Commercial Production, in the form of:
Value Added Tax (‘VAT’) or VAT and Sales Tax on Luxury Goods payable are not levied.
Land and Building Tax is reduced up to 100%.
MoF 67/2020, which was published on 15 June 2020 and effectively came into force by 15 July 2020, also regulates the procedures to obtain the facilities.
In light of the global pandemic, governments across the globe are faced with urgent needs whose immediate coverage is a matter of life and death. Hence, these unusual and uncertain times call for rare and exceptional measures, and without much ado, governments around the globe have provided them. Common to all approaches is the will to enable public contractors to procure the urgently needed supplies to save lives and contain the pandemic without major bureaucratic hurdles.
The government has expanded the tax incentives given to taxpayers that are affected by COVID-19. Some taxpayers that were not entitled to tax incentives under Minister of Finance Regulation No. 23/PMK.03/2020 (“MOF Regulation 23”) may now enjoy those tax incentives under Minister of Finance Regulation No. 44/PMK.03/2020 (“MOF Regulation 44”). The government has also expanded the types of tax for which tax incentives are given.
MOF Regulation 44, which revokes MOF Regulation 23, came into force on 27 April.
The Directorate General of Taxation has also issued Circular Letter No. SE29/PJ/2020 on 30 April 2020 as an implementing regulation of MOF Regulation 44.
Recent Developments
The Minister of Trade (MOT) has issued a regulation banning the export of certain products needed in the fight against COVID-19.
The regulation temporarily bans the export of antiseptic, raw material for masks, personal protective equipment and mask products under several HS Codes.
This is part of the Finance & Projects Group’s new webcast series, “Indonesian Projects Webcast”, a series of short videos you can watch or listen to and share, addressing topical legal issues in Indonesia.
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In brief Recent developments The Indonesian government recently issued Government Regulation in Lieu of Law, Peraturan Pemerintah Pengganti Undang-Undang, No. 1 of 2020 (“Perppu 1/2020”) to mitigate the economic impact of the outbreak of Coronavirus Disease 2019 (COVID-19). This will allow more state spending and financial relief efforts to help the…