Revision of Minister of Finance Regulation, UMKK Transactions Proposed to be Subject to Tariffs

The government has revised Regulation of the Minister of Finance No. 117 of 2023 ("Regulation 117/2023") on the Types and Tariffs of Non-Tax State Revenue (“PNBP”) for Urgent Needs Applicable to the National Public Procurement Agency (“LKPP”). One of the changes is the proposed imposition of tariffs on Micro-, Small-Scale, and Cooperative Enterprises (“UMKK”).

“If UMKK transactions exceed Rp 15 billion cumulatively, we propose that tariffs be imposed,” said LKPP Deputy Secretary Iwan Herniwan to Hukumonline.

Under the current regulations, UMKK transactions above that threshold are not subject to tariffs. “The tariff amount is still under discussion,” said Iwan.

Additionally, the revision will regulate the imposition of additional fees by Government Agency Partners ("MIP"). An example is Telkom, as the operator of the Electronic Procurement System. MIP will be charged transaction fees for services, such as the use of electronic stamps.