Page 5 - Newsletter (Fiscal Incentives for Electric Vehicles and Fiscal Policy Plan for the Year of 2020)

DDTC Newsletter Vol.02 | No.03 I August 2019 Page 5 of 6

Fiscal Incentives for Electric Vehicles and Fiscal Policy Plan for
the Year of 2020

coal mining. Furthermore, this regulation is also used Head of the Indonesia Investment Coordinating Board or
to regulate the aspects of administration, supervision, other official appointed on behalf of the Minister.
and legal certainty in providing taxation and customs
Later, MoF Reg. No.259/2016 was tightened through MoF
treatment of imported goods in the framework of CoW or
Reg. No. 116/2019. The main change is the setting of time
CCoW for the importer company of coal mining.
period for the facilities as shown in the Table 4 which
The CoW itself is an agreement between the government was not regulated in the previous rule. Besides, this new
and Indonesian legal entities in the context of foreign provision also regulates the aspect of ownership transfer,
investment to conduct mining business in the extractive re-export, and destruction of imported goods which are
sectors, excluding oil, natural gas, geothermal, granted the facilities in the context of CoW or CCoW.
radioactive, and coal. Furthermore, the CCoW is defined
MoF Reg, No. 116/2019 also set the aspect of supervision
as a cooperation system or work agreement between the
in details. If there is any indication of violation regarding
government and the domestic and foreign Contractor to
the utilization of VAT facility, DGT and/or DGCE will
operate the mining of coal.
further conduct the audit of the documents provided by
Based on the previous regulation, it was only stated that the company. On the other hand, if an indication of abuse
the exemption or relief of import duties and the exemption is carried out in terms of import duties, further audits or
of VAT on imported goods in the context of CoW or CCoW research will be carried out by the DGCE. This regulation
could be given to the Contractor who specified the facility itself will come into force after 60 days since 13 August
in the contract. The Contractor itself will be provided 2019.
with facilities based on a masterlist determined by the

Table 4 Criteria for Determining Small and Medium Enterprises to Obtain KITE Facilities

Statement in the Contract
No. Facility The Time Period of Granted
Provision Provision Facility to Company
regarding Facility regarding Time
Granted Period of Contract

1 The exemption or relief of import duties in YES YES as stated in the contract
the framework of CoW or CCoW and/or the
exemption of VAT on the import of taxable
goods in the framework of CoW or CCoW

2 The exemption or relief of import duties in YES NO from the date of the contract
the framework of CoW or CCoW and/or the is signed until the tenth year
exemption of VAT on the import of taxable of the Production Operation
goods in the framework of CoW or CCoW period
3 The exemption or relief of import duties in YES NO until the contract ended
the framework of CCoW which fulfills these
following conditions:
- the contract is signed before the year of
1990; and
- the imported goods can be considered
as State-Owned Asset (Barang Milik
Negara)

Source: summarized from MoF Reg No. 116/2019

Latest taxation news and regulations, visit:

news.ddtc.co.id & engine.ddtc.co.id