On 17 May 2019, few representatives of the EuroCham Transport and Logistic Working Group met with Mr. Rusdi Yanis, Section Head of Tax Regulation I of Directorate General of Tax. The meeting took place at EuroCham office and discussed the newly implemented Minister of Finance Regulation No. 32/PMK.010/2019. Under this new regulation the government applies an expansion of the types of services whose exports can be subjected to zero percent VAT. One service that also receives this tax incentive is freight forwarding, which in the context of export can also be zero rated if complying to the stipulated requirements to prove the transaction is based on a written agreement, and that a prove of payment can be presented to the Directorate General of Tax. However, there are still remaining challenges for the implementation of this new tax facility by global logistics companies, especially related netting mechanism normally adopted by multinational companies to prove their transactions. During this meeting, EuroCham encouraged the Directorate General of Tax also to organize a separate socialization event to a larger audience within EuroCham member companies.
On 13 May 2019, few representatives of the EuroCham Automotive Working Group met with Mr Robert Marbun, Expert Staff of the Minister of Finance to discuss investment and taxation issues in the automotive sector. During the meeting Mr. Robert was accompanied by Mr Rofyanto Kurniawan, Director of Center for Revenue Policy, as well as few representatives from the Directorate General of Tax and the Fiscal Policy Agency.
From EuroCham side, the group was represented by its Head of Working Group Mr Daniel Purba from Mercedes-Benz and accompanied by member company from Volvo Bus Indonesia, Mr Himawan Kunto. Relevant to this meeting were topics and proposals for the development of the automotive industry such as scheme for CO2 emission-based taxation, Electric or Electrified Vehicles, CKD and IKD schemes, and other tax incentives for development of vocational training by the industry. As a conclusion, both parties agreed to have a more intensive discussion and collaborative effort to address various issues related to taxation and investment, including discussion with other priority sectors.