Concessions on special projects and special zones

Foreign loan-funded and foreign grant-funded government projectsGovernment projects funded with foreign loans or foreign grants may be eligible for special tax treatment for the income derived from that funding. The projects that typically qualify are set out in the state Project Table of Contents (Daftar Isian Proyek/DIP) or other similar documents. Main contractors, consultants and… Read More

LST concession

LST incentive for motor vehicles The following LST incentive is available for “green” motor vehicles with LST rates of 10%, 20%, 30%, 40%, and 125%. The LST base is reduced to certain percentage from the sales price that will effectively lower the applied LST or mean there is even no LST for certain motor vehicles.

Customs and Excise

Import Duty Import duty is generally payable at rates from 0% – 150% on the customs value of imported goods. Customs value is calculated on Cost, Insurance and Freight level (CIF). As a commitment to liberalising trade, the Indonesian government is progressively lowering import duty rates on most products. Higher duty rates remain to protect… Read More