Page 2 - Newsletter (Government Launched Temporary Safeguard Import Duty)

DDTC Newsletter Vol.02 | No.09 I November 2019 Page 2 of 6

Government Launched Temporary Safeguard Import Duty

Indonesia’s Paying Taxes Ranking Licensing is facilitated and expedited by synchronizing
Increases regulations pertaining to licensing whereas business
operations are facilitated by raising stockpiling period,
simplifying documents, certain treatments, and
The World Bank Group (WBG) has again released the arrangements related to Independent Customs Bonded
2020 Ease of Doing Business (EoDB) Report. In 2020 Warehouses.
EoDB, Indonesia remains in the same position as last
year, i.e. ranks at 73 out of 190 countries. Moreover, MoF Regulation No. 155/2019 is adapted
to the development of industrial business processes
Various efforts undertaken by the government in terms by developing facility functions, including the addition
of ease of doing business have indeed slightly increased of types of goods entitled to facilities, namely goods
Indonesia’s score from 67.96 to 69.6 out of 100. By and required for management and operation in Bonded
large, however, there have been improvements, one of Warehouses and regulations concerning One-on-One
which pertains to the ranking of paying taxes. Bonded Warehouses, returnable packages, and damaged
goods in Bonded Warehouses.
Indonesia’s paying taxes area ranks at 81, indicating an
increase compared to the previous year ranking at 112. With its convenience and developments, this new
The rise in ranking is due to Indonesia’s paying taxes regulation mandates an efficient supervision pattern with
score of 75.8 that improved from the previous year score risk management enabling the facilities to hit the target.
of 68.4. Regulations concerning supervision include affirmations
related to stripping, responsibilities of Bonded
In further detail, the number of payments from formerly Warehouse entrepreneurs, segregation of stockpiling
43 per year is now 26 per year. The time spent on and inspection sites, and arrangements related to the
handling taxes (time to comply) has declined from 208 monitoring and evaluation in Bonded Warehouses.
hours to 191 hours per year.
In summary, through this regulation, the government
Concurrently, the total tax and contribution rate and emphasizes that the stringency of supervision is applied
post-filing index remain unchanged at 30.1% of profit in two manners, i.e. taxation and the imports of goods
and a score of 68.8. In its report, the WBG claims that mechanism.
Indonesia has simplified tax payments by implementing
online reporting and payment systems. In terms of taxation, through this regulation, the
authorities elucidate that goods entering Bonded
On a side note, the 10 countries ranked as the top paying Warehouses must fulfill certain mechanisms, for
taxes are Bahrain, Hong Kong SAR, China, Qatar, Ireland, instance, a tax invoice must be prepared and evidenced
Mauritius, Kuwait, Singapore, Denmark, New Zealand, with customs and excises declaration documents and
and Finland, respectively. books, record, documents related to the entry of goods
into Bonded Warehouses must be well-maintained.
Bonded Warehouse Rules Updated
In contrast, in terms of import of goods, the authorities
The government has set forth policies regarding Bonded also state that goods entering the Bonded Warehouses
must comply with a number of provisions. First, stripping
Warehouse (Gudang Berikat) facilities through the
Minister of Finance Regulation No. 155/2019 concerning must be performed on goods entering the Bonded
Warehouses.
Bonded Warehouses (MoF Reg. No. 155/2019). The
issuance of the regulation signifies the government’s
serious intent to enhance the competitiveness of domestic Second, stripping is undertaken immediately after the
goods enter Bonded Warehouses. Third, in the event
industries to compete in local and international markets.
that stripping cannot be promptly conducted due to
the company’s business processes, the loading of goods
This new regulation revokes the previous regulation,
into the Bonded Warehouse can be postponed with the
namely MoF Reg No.143/2011 concerning Bonded
approval of the Head of the Customs Office.
Warehouses. A number of considerations underlying the
revocation include ease of business for users of Bonded
Warehouse facilities, development of the function These provisions, however, are exempted for liquid, bulk
goods, gas, or the like and other goods based on the
of Bonded Warehouse facilities, and optimization of
supervision of goods in Bonded Warehouses. approval from the Head of Prime Customs and Excise
Office or the Head of Customs Office in consideration of
the company’s risk profile.