News & Articles
Socialization on Post Border and Ministry of Finance Regulation No. 229/PMK.04/2017
On 27 March 2018 EuroCham attended a socialization by the Soekarno Hatta Customs Service Office regarding the implementation of post border policy, and Minister of Finance Regulation No. 229/PMK.04/2017. Objections were raised against the Regulation No. 229/PMK.04/2017 which regulates the Procedures for the Imposition of Import Duty under International Agreement or Treaty Frameworks. It is required by this regulation that to enjoy the lower preferential tariff, Certificate of Origin must be submitted within 3-5 days, otherwise higher normal tariffs will apply which must be paid by the importer or its forwarders.
The short deadline for submission of Certificate of Origin is the primary concern since previously submission can be done after 30 days. Notably participated in the discussion were representatives from the Indonesian Logistic and Forwarders Association (ALFI), the Indonesian Association of Express Delivery, Postal, and Logistics (ASPERINDO), Indonesia National Importer Association (GINSI).
EuroCham Presented Study on VAT in International Freight Forwarding Services
EuroCham was invited by the Fiscal Policy Agency on 16 March 2018 to present findings and joint study with the Indonesia Logistics and Forwarders Association (ALFI) on VAT in International Freight Forwarding Services. EuroCham highlighted double taxation issues in the practice of VAT in international freight as well as the impact to the logistics sector and competitiveness of Indonesia. Proposal from the industry is to exclude imposition of VAT to delivery of international freight forwarding services and consider it as a non-taxable service. A follow up joint assessment on this topic was conducted on 29 March 2018 when the Fiscal Policy Agency requested additional data to highlight the practice in other countries as a benchmarking.
Both of these meetings were chaired by Mr. Rustam Effendy (as the Head of Tax Policy and Non-Tax State Revenue I, Center of State Revenue Policy). This meeting was also attended by few representatives from the Directorate General of Tax, represented by Mr. Rusdi Yanis (Section Heaf for VAT Regulation, Directorate of Tax Regulation I), as well as representative from the Coordinating Ministry for Economic Affairs, and few researchers from the Center of State Revenue Policy.