News & Articles

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.

On 26 February 2018, EuroCham visited PT Pelabuhan Indonesia II and met Mr. Prasetyadi (Director of Operation and System Information) to understand the operation and discuss about their future plan for the development of Container Freight Station Center facilities at Tanjung Priok Port. The Facility stores "less than container load" (LCL) import containers which are still under the supervision of customs, centralized within one area. The development aims to increase efficiency in logistics costs by creating a more integrated system between various processes and logistics activities at ports.