Govt. Tightens Provision of Fiscal Facilities to KK or PKP2B Contractors

The Minister of Finance (“ Minister ”) has issued Regulation No. 116/PMK.04/2019 on Import Duty Exemptions and Dispensations and/or Value-Added Tax Exemptions for Imported Goods in Relation to Contracts of Work or Coal Contracts of Work (“ Regulation 116/2019 ”) in an effort to tighten up requirements which should be met by contractors of Contracts of Work (Kontrak Kerja– “ KK ”) or Coal Contracts of Work (Perjanjian Karya Pengusahaan Pertambangan Batu Bara– “ PKP2B ”) in order to obtain said exemptions and/or dispensations. [1]