Page 5 - Newsletter (Increased Housing Price Thresholds for VAT Exemptions)

DDTC Newsletter Vol.01 | No.08 I June 2019 Page 5 of 7

Increased Housing Price Thresholds for VAT Exemptions

Table 2 - Stages of Selection for the Procurement of Information System Providers for
the Renewal of the Tax Administration System
International Tender Method through the Two-Stage Direct Appointment Method
Tender with Prequalification System

1) Submission of prequalification documents; 1) Invitation to prospective selected Providers attached with the
2) Prequalification evaluation; Procurement Document;
3) Announcement of prequalification results; 2) Submission of bidding documents (administrative, technical,
4) Invitation and Bidding Documents; fees, and qualification documents)
5) Provision of explanation; 3) Evaluation and clarification of bidding documents;
6) Submission of phase I bidding documents (administrative and 4) Technical and cost negotiations;
technical documents); 5) Appointment of the Provider; and
7) Opening phase I bidding documents; 6) Announcement of the Provider.
8) Phase I bidding documents evaluation;
9) Clarification of the phase I evaluation results;
10) Notification of the phase I evaluation results;
11) Submission of amendment/addendums to procurement
documents (if any);
12) Submission of phase II bidding documents (technical and cost);
13) Opening phase II bid documents;
14) Phase II bidding documents evaluation;
15) Announcement of phase II bidding documents evaluation
results;
16) Refutation period;
17) Appointment of the winner; and
18) Announcement of the winner.
Source: MoF Regulation 56/2019

Provisions of Temporary Imports
1. International tender method through a two-stage
tender with prequalification; or and Exports of Motor Vehicles for
2. Direct appointment method.
the Border Region of the Republic of
There exist a number of requirements to implement the
direct appointment method. First, the direct appointment Indonesia
can only be selected if the first method is declared to
have failed in the criteria selection process whereas In May 2019, the Government of Indonesia issued a
the implementation cannot be postponed and there regulation intended to encourage economic growth
is insufficient time for another tender. However, this and improve the welfare of the people of the outermost
direct appointment method must also be included in the region on the Indonesian border through rules related to
proposed RUP evaluated by the Director General of Taxes. the import and export of motor vehicles. This is regulated
through the MoF Regulation No. 52/PMK.04/2019
Second, the direct appointment method can only be concerning Temporary Imports or Temporary Exports of
implemented if the procurement of the information Motor Vehicles through Cross-Border Control Posts (MoF
system is urgent and deemed necessary. The urgency Regulation 52/2019).
and importance criteria based on this policy include two
conditions. The first condition is an unplanned situation The two main regulated aspects pertain to the temporary
with immediate or urgent completion of work thus the imports and temporary exports of motor vehicle
procurement is carried out through direct appointment. products, both for personal and commercial purposes.
Temporary imports are the process of importing motor
The second condition is where the procurement is a vehicles into customs areas intended to be re-exported
continuation of work as a consequence of the need for within a certain period of time. In contrast, temporary
technical support services and/or extension of the exports refer to exports intended to be re-imported
license for the continuation of the tax administration within a certain period of time.
system renewal. The following table 1 shows the stages
of selection for external parties (companies) wishing to Within this regulation, the temporary export and import
be information systems providers based on the two latest procedure consists of two specific criteria, namely the
approaches. export or import has to be conducted through the cross-
border control post and vehicle declaration is obligatory.
Furthermore, the following border areas along with