ANNOUNCED AS TEMPORARYNo
Internal taxation of imports
On 29 September 2015, the Indonesian Finance Ministry announced government regulation 69/2015 relieving imports in the aviation, fishery, railway and port services industries from the value-added tax.
Following the move, the chairman of the Indonesian National Air Carriers Association and president of Indonesia's largest airline carrier Garuda Indonesia, Arif Wibowo, was quoted in the media saying: "We welcome this policy. By doing away with VAT for imported aircraft and the spare parts, we can revive the aviation industry as it will help in cost efficiency for non-fuel 'spending'".
The regulation was part of the second stimulus package announced in September 2015 by the president (cf. Related Measures). It will come into force on 17 October 2015.
The list of affected products was further specified in the annex of the regulation 193/PMK.03/2015 (cf. Sources), which was issued by the Ministry of Finance on 20 October 2015.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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