GOVERNMENT REGULATION NUMBER 50 YEAR 2019 REGARDING IMPORT

AND DELIVERY OF CERTAIN TRANSPORTATION VEHICLES AND DELIVERY

OF TAXABLE SERVICES RELATED TO CERTAIN TRANSPORTATION
VEHICLES BEING EXEMPTED FROM VALUE ADDED TAX

1 AUGUST 2019

Summary:

To further encourage the competitiveness of the land, water and air transportation
industry, as well as ensure the availability of adequate defense and security equipment
to protect the territory of the Republic of Indonesia and to provide more legal certainty
in the provision of facilities not subject to Value Added Tax on certain transportation
equipment and related services Certain transportation as already regulated in
Government Regulation Number 69 Year 2015 concerning Import and Delivery of
Certain Transport Equipment and Delivery of Taxable Services Related to Certain
Transport Equipment that is not subject to Value Added Tax, needs to replace
Government Regulation Number 69 of 2015 concerning Import and Delivery of Certain
Transport Equipment and Submission of Taxable Services Related to Certain
Transport Equipment that Are Not Value Added Tax.

INTRODUCTION

Certain means of transportation for which imports are not subject to Value Added Tax
include:
a. transportation equipment in water, transportation equipment under water,
transportation equipment in the air, and railroad, as well as spare parts, and
shipping safety equipment and human safety equipment, aviation safety
equipment and human safety equipment imported by the ministry that carries
out government affairs in the field of defense, the Indonesian National Army,
and the Indonesian National Police;
b. transportation equipment in water, transportation equipment under water,
transportation equipment in the air, and railroad, as well as spare parts, and
safety equipment for shipping and human safety equipment, aviation safety
equipment and human safety equipment imported by other parties appointed

Page | 1
 by the ministry organizing government affairs in the field of defense, the
Indonesian National Army, and the Indonesian National Police to carry out the
import;
c. sea transportation vessels, river transportation vessels, lake transportation
vessels and ferry transportation vessels, fishing vessels, scout boats, tugs,
barges, and their spare parts, ship equipment, shipping safety equipment and
human safety equipment imported and used by the company national
commercial shipping, national fishing companies, national port service
providers, and national river, lake and crossing service providers, in
accordance with their business activities;
d. aircraft and its spare parts as well as aviation safety equipment and human
safety equipment, equipment for repairs and maintenance imported and used
by the national commercial air transport business entity;
e. aircraft parts and equipment for the repair and maintenance of aircraft imported
by parties designated by the national commercial air transport business entity
that is used in the context of providing aircraft maintenance and repair services
to the national commercial air transportation business entity;
f. railroad and its spare parts as well as equipment for repair and maintenance as
well as railroad infrastructure imported and used by the Public Railways
Provider Business Enterprise and / or the Public Railroad Infrastructure
Provider Business Entity; and
g. components or materials imported by the party appointed by the Public Railroad
Infrastructure Provider Business Entity and / or the Public Railroad
Infrastructure Provider Business Entity, which are used for manufacturing:
1. a train;
2. spare parts;
3. equipment for repairs and maintenance; and / or
4. Railway infrastructure, which will be used by the Public Railways Provider Business
Enterprise and / or the Public Railroad Infrastructure Provider Business Entity.

Certain means of transportation for which the value added tax is not collected include:
a. water transportation equipment, underwater transportation equipment, air
transportation equipment, and railroad, as well as spare parts, and shipping
safety equipment and human safety equipment, aviation safety equipment and
human safety equipment handed over to the ministry that carries out
Page | 2
 government affairs in the field of defense, the Indonesian National Army, and
the Indonesian National Police;
b. sea transportation vessels, river transportation vessels, lake transportation
vessels and ferry transportation vessels, fishing vessels, scout boats, tugs,
barges, and their spare parts, ship equipment, sailing safety equipment, and
human safety equipment which are handed over to and used by national
commercial shipping companies, national fishing companies, national port
service providers and national river, lake and ferry service providers, in
accordance with their business activities;
c. aircraft and its spare parts as well as aviation safety equipment and human
safety equipment, equipment for repairs and maintenance submitted to and
used by the national commercial air transport business entity;
d. aircraft parts and equipment for the repair and maintenance of aircraft obtained
by parties designated by the national commercial air transport business entity
that is used in the context of providing aircraft maintenance and repair services
to the national commercial air transport business entity;
e. railroad and its spare parts as well as equipment for repair and maintenance as
well as railroad infrastructure which are submitted to and used by the Public
Railways Provider Business Enterprise and / or the Public Railroad
Infrastructure Provider Business Entity; and
f. components or materials submitted to parties appointed by the Public Railroad
Infrastructure Provider Business Entity and / or the Public Railroad
Infrastructure Provider Business Entity, which are used for manufacturing:
1. a train;
2. spare parts;
3. equipment for repairs and maintenance; and / or
4. Railway infrastructure, which will be used by the Public Railways
Provider Business Enterprise and / or the Public Railroad Infrastructure
Provider Business Entity.
a. Taxable services related to certain means of transportation for which
the value added tax is not collected include:
a. services received by national commercial shipping companies, national fishing
companies, national port service providers, and national river, lake and ferry service
providers which include:

Page | 3
 1. boat rental services;
2. Port services include delay services, scout services, mooring services,
and anchoring services; and 3. ship maintenance and repair services.
b. services received by national commercial air transport business entities which
include:
1. aircraft rental services; and
2. aircraft maintenance and repair services.
3. railroad maintenance and repair services received by the Public
Railways Provider Business Entity.

Taxable Services from outside the customs area related to certain means of
transportation for the use of which are not levied Value Added Tax includes aircraft
leasing services utilized by the national commercial air transport business entity.

Further provisions regarding the requirements and procedures for the import and
delivery of certain transportation equipment as well as the delivery and utilization of
taxable services related to certain transportation equipment that are not levied on
Value Added Tax are regulated by a Regulation of the Minister of Finance.

When this Government Regulation comes into force, all implementing regulations of
Government Regulation Number 69 of 2015 concerning Import and Delivery of Certain
Transport Equipment and Delivery of Taxable Services Related to Certain Transport
Equipment That Are Not Charged Value Added Tax (State Gazette of the Republic of
Indonesia Year 2015 Number 211, Supplement to the State Gazette of the Republic
of Indonesia Number 5739), is declared to remain valid as long as it does not conflict
with the provisions in this Government Regulation.

At the time this Government Regulation comes into force, Government Regulation
Number 69 of 2015 concerning Import and Delivery of Certain Transport Equipment
and Delivery of Taxable Services Related to Certain Transport Equipment that Are Not
Charged Value Added Tax (State Gazette of the Republic of Indonesia Year 2015
Number 211, Supplement to the State Gazette Republic of Indonesia Number 5739),
revoked and declared invalid.

Page | 4
This Government Regulation shall come into force after 60 (sixty) days from the date
of promulgation, which is in January 2020.

Page | 5