Event Reports

The Ministry of Transportation together with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through TRANSfer III Project, is developing a program related to green freight and logistics in order to help the efficiency of the logistics system in Indonesia. To develop the study, the TRANSfer III Project Team visited EuroCham office on 7 February 2020 to present their initial findings to the leaders of EuroCham Transport and Logistics Working Group, as well as gather feedback and further inputs for the study.

The study itself will produce action plan related to: 1) a combination of intermodal transport of goods on roads and trains (intermodal freight transport), and 2) modernization of the truck fleet

On 7 February 2020, the Working Group of Transport and Logistics had a meeting that focused on taxation issues for freight forwarding businesses, including current polices for VAT and Withholding Tax for the services.

Regarding VAT and Withholding Tax, the group discussed the potential to conduct a study to be brought to the DG Tax and other relevant policy makers with hopes to change the regulation based on international best practices on International Freight Services, while keeping other domestic services at the current practices. However, further discussion will still need to be done with member companies in the sector. Generally, the group welcomed this suggestion and will gather all parties willing to take part in this arrangement. Lastly, the group also discussed relevant circular letter by the DG Tax regarding tax treatment for local trucking services.