Member Article

Upon the ongoing spread of coronavirus disease (“COVID-19”) pandemic, the Indonesian Government has declared the COVID-19 as a national emergency situation. Following the nation’s COVID-19 emergency, the Indonesian Government have issued sets of regulations and policies in various sectors in order to control and mitigate the adverse impacts of the COVID-19 pandemic.In this Advisory, we will discuss several regulations and policies implemented by the Indonesian Government for the purpose of stimulating finance and tax sectors, as well as to control the spread of COVID-19 by providing relaxation for importing medical goods and supplies in Indonesia.

In details, the publication covers the following topics:

a. Regulations and Policies to Stimulate Finance and Tax Sectors

1. Adjustments of Income Tax for Corporate Taxpayers
2. Tax Treatments Related to Electronic-Based Trading Activity (“E-Commerce”)
3. Budget Deficit Relaxation
4. The Authorities of Bank Indonesia (“BI”) in Handling Financial System Stability Issues
5. The Authorities of the LPS in Handling Financial System Stability Issues
6. The Authorities of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) in Handling Financial
7. System Stability Issues
8. Crisis Protocol

This section also talks about the related regulations as follows:

1. OJK Regulation No. 11/POJK.03/2020 on The National Economic Stimulus as a Countercyclical Policy in Relation to the Impact of the Outbreak of the 2019 Coronavirus Disease
2. MOF Regulation No. 23/PMK.03/2020 on Tax Incentives for Taxpayers who are Affected by the Outbreak of the Coronavirus Disease

b. Regulations and Policies on the Relaxation for Importing Medical Goods and Supplies

The Indonesian Government then introduces the following regulations in order to accelerate the entry of the medical equipment needed during the COVID-19 pandemic to reduce the shortage and make them readily available.

1. Import Relaxation for Certain Products through Minister of Trade (“MOT”) Regulation No. 28 of 2020 on the Eighth Amendment to MOT Regulation No. 87/M-DAG/PER/10/2015 on Provisions on Importing Certain Products
2. Facilities for Importing Other Goods to Handle COVID-19 by the BNPB and the Directorate General of Customs and Excise (“DGCE”) under Joint Standard Operational Procedure No. 01/ BNPB/2020; No. KEP-113/BC/2020 on the Acceleration of Import Services for Goods for the Purpose of COVID-19 Countermeasures

Please click the link below to read more about this advisory.