Updated prices for the calculation of export duties in Indonesia
Endy Arya Yoga and Egar Adipratama of GNV Consulting summarise significant Indonesian changes regarding export prices, the luxury goods reporting system for government business partners, and the objection process for customs and excise disputes.
The Indonesian Minister of Finance (MoF) has issued Decree No. 29/KM.4/2022 (‘KMK-29’) regarding the Second Amendment to MoF Decree No. 28/KM.4/2022 (‘KMK-28’) concerning Determination of Export Prices for the Calculation of Export Duties. KMK-29 became effective from September 1 2022 until September 30 2022. However, these export prices remain valid until a new export prices regulation is issued.
The main changes under KMK-29 are as follows:
Changes in the determination of the export price for export goods in the form of veneer wood, woodchips, processed wood, skin, cocoa beans, processed metallic mineral products, and metallic mineral products meeting certain criteria; and
Changes in the guidelines for the types of export goods that are subject to export duties, including the amount of the export duty tariff referring to the Attachment of MoF Regulation 123/PMK.010/22 regarding the Second Amendment to MoF Regulation No. 39/PMK.010/22 concerning Decisions on Exported Goods Subject to Export Duties and Export Duty Tariffs, as referred to in GNV Consulting’s Local Insights articles in July and September 2022.
The key changes in export prices between KMK-29 and KMK-28 are as follows:
Export price for wood
Veneer, veneer wood in the form of wooden sheets for packaging boxes
Processed wood, merbau
Export prices for cocoa beans
Export prices for processed mineral products
A. Copper concentrate, copper concentrate with 15% grade ≤ Cu < 16% and with gold 0 ppm grade < Au ≤ 5 ppm
B. Iron concentrate, iron concentrate (hematite, magnetite) measuring 62% ≤ Fe < 63%
For other changes in export prices, see the Attachment of KMK-29.
Luxury goods reporting for government business partners
On September 9 2022, the Directorate General of Taxes issued Regulation No. PER-13/PJ/2022 (‘PER-13’) concerning the Procedures of VAT/Sales Tax on Luxury Goods Reporting for Government Business Partners in relation to the Government Procurement Information System. The issuance of PER-13 was designed to provide clarity and legal certainty to ease the implementation of MoF Regulation No. 58/PMK.03/2022.
Government business partners (GBP) categorised as small entrepreneurs do not need to report VAT or sales tax on luxury goods that have been collected, deposited, and reported by other parties (i.e., marketplaces/retailers designated by the government).
GBP that are not categorised as small entrepreneurs are required to report the delivery of taxable goods or taxable services as VAT that is collected by the VAT collector.
GBP as mentioned above are entrepreneurs that provide goods and/or services through the Government Procurement Information System.
The criterion of ‘small entrepreneur’ is an entrepreneur that has deliveries of taxable goods and/or taxable services with a total gross turnover not exceeding IDR 4.8 billion ($313,000) for one fiscal year, as stipulated in MoF Regulation No. 197/PMK.03/2013 regarding the amendment of MoF Regulation No. 68/PMK.03/2013 concerning small entrepreneurs.
Customs and excise objections
On September 12 2022, the MoF issued Regulation No. 136/PMK.04/2022 (‘PMK-136’) regarding the amendment to MoF Regulation No. 51/PMK.04/2017 (‘PMK-51’) concerning Objections for Customs and Excise. PMK-136 will become effective on January 1 2023.
The highlight of the changes under PMK-136 is that the Directorate General of Customs and Excise (DGCE) will implement a new interface in CEISA, an official DGCE web-based portal, as a default channel to accommodate the objection process for customs and excise disputes.
The following are the key changes between PMK-136 and PMK-51:
Default submission procedures of an objection letter and additional explanation/supporting documents
Different formats of an objection letter for underpayment and zero payment;
Online letter submission, additional explanation/supporting documents, and receipt issued through the CEISA portal; and
Troubleshooting assistance can be provided by DGCE officers via phone call.
Single objection letter format; and
Manual letter submission, additional explanation/supporting documents, and receipt issued through the DGCE office.
Cancellation procedures for the submitted objection letter
Cancellation submitted through the CEISA portal.
Cancellation submitted through the DGCE office.
Extraordinary submission and cancellation procedures of an objection letter
The DGCE will inform when the portal is inoperable through digital media; and
The DGCE allows the submission, cancellation, and receipt issued of an objection letter manually through the DGCE office if the portal is inoperable, and the proof needs to be attached.
Issuance of an objection decision letter
The objection decision letter will be issued by the DGCE through the CEISA portal; or
Manually, via a post office, in the event that the CEISA portal is inoperable.
The objection decision letter will be issued by the DGCE manually.