The Indonesian government issued Government Regulation No. 29 of 2024 (GR-29) on August 12 2024, which amends Government Regulation No. 12 of 2023 (GR-12) concerning the Granting of Business Licences, Ease of Doing Business, and Investment Facilities for Business Entities in the Capital City of Nusantara. GR-12 was previously followed by Minister of Finance Regulation No. 28 on May 16 2024 (PMK-28). Please refer to GNV Consulting’s monthly tax update in April 2023 for more details on GR-12.
GR-29 includes adding special regional user fee facilities beyond those related to taxes and special regional revenues, which fall under the authority of the Nusantara Capital Authority. GR-29 states that the Nusantara Capital Authority guarantees the certainty of the term of land rights through a first cycle, and a further second cycle can be granted to business operators, where additional housing development incentives have been introduced to facilitate implementation for businesses, including tax incentives such as:
Tax relief for modest houses;
An exemption from duty on the acquisition of land and building (L&B) rights (Bea Perolehan Hak atas Tanah dan Bangunan), which also applies to consumers; and
L&B rights tax relief for a certain period, which also applies to consumers.
The provision of investment facilities, as referred to, is carried out through the Online Single Submission system or electronic channels available at the ministry responsible for government affairs in state finance.
Exemption of import duty on the importation of certain seeds and seedlings
The Indonesian Ministry of Finance (MoF) has issued MoF Regulation No. 41 of 2024 (PMK-41) concerning the Exemption of Import Duties on the Importation of Seeds and Seedlings for the Development and Expansion of the Agricultural, Livestock, or Fisheries Industries.
PMK-41 revokes MoF Regulation No. 105/PMK.04/2007 concerning the Exemption of Import Duties on the Importation of Seeds and Seedlings for the Development and Expansion of the Agricultural, Livestock, or Fisheries Industries. PMK-41 became effective on August 4 2024.
Basically, PMK-41 aims to improve supervision and services in providing an exemption from import duties on the importation of seeds and seedlings.
The main changes in PMK-41 include several key aspects related to the exemption of import duties for the importation and exportation of seeds and seedlings, as summarised below.
The exemption of import duties for seed and seedling imports applies to:
The importation of seeds and seedlings from outside the customs territory or through bonded logistics centres by business operators for the agricultural, livestock, or fisheries industries, including in the plantation and forestry sectors; and
The importation of seeds and seedlings through bonded logistics centres by business operators for the agricultural, livestock, or fisheries industries, including in the fields of plantation and forestry.
The exemption of import duties for seed and seedling exports from bonded zones also applies to the exportation of seeds and seedlings originating from outside the customs territory from several bonded warehouses, bonded zones, bonded exhibition venues, bonded auction venues, special economic zones, or free zones.
In addition, PMK-41 provides further clarification on the various procedures involved, including:
Applications for import duty exemptions;
Customs notifications and restrictions;
Utilisation and reporting;
Fulfilment of customs obligations;
Handling of force majeure situations; and
Monitoring and evaluation.
These changes aim to facilitate business operators in the relevant sectors and ensure that the process of importing and exporting seeds and seedlings runs smoothly, and in accordance with the applicable regulations.
Supervision and transportation of certain goods in the customs territory
The Indonesian government has issued MoF Regulation No. 50 of 2024 (PMK-50) as the implementing regulation for Article 85A, paragraph (3) of the Customs Law. Under this regulation, customs officials are granted the authority to supervise the transportation of certain goods within the Indonesian customs territory.
This regulation covers supervision from loading, departure, and transportation to the unloading of goods at the destination. The specific goods subject to supervision are determined by the relevant technical agencies through official regulations, which are then communicated via the Indonesia National Single Window system or the Service Computer System.
The carriers of the goods are required to report certain goods through the Specific Goods Customs Notification service before the transportation process begins. If this obligation is not met or if there are outstanding sanctions, customs has the authority to block the carrier’s customs access.
PMK-50 was enacted on July 31 2024 by the Indonesian finance minister, Sri Mulyani Indrawati, and will come into effect 90 days from the date of its issuance.
