Page 4 - Newsletter (Fiscal Facilities For Boosting Investment and Economic Growth)

DDTC Newsletter Vol.01 | No.02 I March 2019 Page 4 of 5

FISCAL FACILITIES FOR BOOSTING INVESTMENT AND ECONOMIC GROWTH

Government Regulates Tax Incentives are not required to apply for Company Registration
to Boost Ease of Export Number (Nomor Induk Perusahaan/NIPER). Instead, the
confirmation as the company of KITE Exemption and/
or Drawback will be given directly by the Minister of
The government has once again released the latest Finance through Minister of Finance Decree (Keputusan
regulations regarding the ease of imports for the
Menteri Keuangan/KMK).
production of goods to be exported. This facility is known
as Import Tax Waiver for Materials for Export Oriented
Requirements for a company to apply for KITE facilities
Goods (Kemudahan Impor Tujuan Ekspor/KITE) which
are as follows:
came into effect as of February 18, 2019.
a. the type of business is manufacturing industry;
KITE facilities can be classified into two types. First, the b. having proof of ownership or proof of mastery over
exemption from import duty and/or Value Added Tax the location for production and stockpiling of goods
(VAT) or the non-imposition of sales tax on luxury goods and materials and products for a minimum of three
(PPnBM) on the import of goods and/or materials to be years;
processed, assembled, or installed on other goods for c. having an adequate internal control system; and
export or supplied to Bonded Zone (Kawasan Berikat/
d. utilizing computer-based inventory information
KB) or known as KITE Exemption (KITE Pembebasan)
system (IT inventory) for goods management
facility. This facility is regulated through PMK No. 160/
relevant to customs documents and accessible by
PMK.04/2018 (PMK 160/2018).
the Directorate General of Customs and Excise.
Second, the KITE facility of refund of import duty
The simplification in the two regulations is also
and/or excise paid for the import of goods and/or evidenced by the period of the approval or rejection of
materials to be processed, assembled, or installed on
the facilities application. Previously, approval or rejection
other goods exported or supplied to KB is referred to of the application might have taken 45 days since the
as KITE Drawback (KITE Pengembalian). The facility
submission, whereas based on the latest provisions,
of KITE Drawback is regulated through PMK No. 161/ this process only takes one week after inspection and
PMK.04/2018 (PMK 161/2018).
business model presentation by the company’s board of
directors to the Head of Regional Office or Head of Prime
In lieu of PMK No.254/PMK.04/2011 jo. PMK No. 176/ Customs and Excise Office of the Directorate General of
PMK.04/2013 and PMK No. 253/PMK.04/2011 jo. Customs and Excise (DGCE).
PMK No. 177/PMK.04/2013, PMK 160/2018 and PMK
161/2018 are aimed at deregulation and simplification
The technical provisions for these two incentives have
of regulations, expanding the supply chain of materials also been issued by the DGCE through the Director
as substitutes for imported goods, expanding export General of Customs and Excise Regulation (PER-DJBC)
production channels, accommodating the development in mid-February 2019. PER-DJBC No. PER-03/BC/2019
of business activities, and improving policies pertaining
regulates facility of KITE Drawback. Furthermore, the
to KITE facilities. KITE Exemption facility is regulated further through
PER-DJBC No. PER-04/BC/2019.
In general, through these two latest regulations,
companies can submit applications to obtain KITE
facilities electronically through the Indonesia National
Single Window system in the framework of Online
Single Submission (OSS). In addition, companies

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