Govt. Issues New Regulation on Excise Settlements

With the ultimate objective of ensuring legal certainty, the Minister of Finance (“ Minister ”) has issued Regulation of the Minister No. 68/PMK.04/2018 on Excise Settlements (“ Regulation 68/2018 ”). Regulation 68/2018 serves as a set of guidelines for the implementation of excise settlement methods within Indonesia. [1] Previously, these matters were addressed under Regulation of the Minister No. 108/PMK.04/2008 on Excise Settlements, which has been amended three times, most recently through the issuance of Regulation of the Minister No. 15/PMK.04/2015 (“ Previous Regulations ”).In general, Regulation 68/2018 codifies the various provisions originally set out under the Previous Regulations, with only minor changes being made. Excise Settlement Methods Regulation 62/2018 requires excise for any excisable goods which are produced in/imported into Indonesia to be settled when the relevant goods are either being imported to or collected from factories/warehouses. [2] Said excise settlements are to be undertaken through the application of any of the following methods: