New Fiscal Incentives Introduced as Government Pledges to Bear Import Duty in Relation to Certain Goods and Materials

In an effort to anticipate further impacts resulting from the ongoing Corona Virus Disease 2019 (COVID-19) pandemic upon the productivity of certain industrial sectors, which are already leading to significant losses in terms of Indonesia’s overall economic growth, [1] the Minister of Finance (“ Minister ”) has issued Regulation No. 134/PMK/010/2020 on Government-Borne Import Duty for Imports of Goods and Materials Which Are Used to Produce Goods and/or Services by Certain Industrial Sectors Impacted by the Corona Virus Disease 2019 Pandemic (“ Regulation 134/2020 ”). This new regulatory framework sets out a new round of fiscal incentives that specifically address Government-Borne Import Duty (Bea Masuk Ditanggung Pemerintah– “ BM DTP ”) for imports of goods and materials that are required by certain industrial sectors in order to produce goods/services. It should also be noted that Regulation 134/2020 will remain in force until 31 December 2020. [2]