Covid-19 - Summary of Measures

INDONESIA

Indonesia has confirmed its first case of covid-19 at March 1, 2020. Until May 4, 2020 Indonesian positive case has reached 11.587.

During covid-19 pandemic in Indonesia, our government has made new regulations to avoid spreading of Covid-19 and maintain economic condition during this pandemic. They are PSBB (Pembatasan Sosial Berskala Besar / Large-Scale Social Distancing) until further notice and Reduction taxes for domestic tax payer.

The following is rule of PSBB until further notice:

1. Prohibition of Studying at school. Student must study at home
2. All of worker must work From Home. All of Industry prohibited to open their office or factory except these following industries:
   1. Health
   2. Food, Drink & Agriculture
   3. Energy
   4. Communication, Technology, Information
   5. Finance
   6. Construction
   7. Strategic Industry
   8. Public Service and National Vital Object
   9. Daily Needs
3. Industries are allowed to operate must do health protocol such as using face mask, hand gloves, washing hands more often or using antiseptic liquid, and keep distance 1 meter with other people.
4. People are not allowed to go to their hometown.
5. A car is not allowed to carry more than 50% of total seat passengers

No	Tax	Incentives
1	Income Tax art 21 – Personal	Monthly tax until September 2020 is borne by government. This incentive valid for people work in certain industries (1062 business fields) and gross income no more than IDR 200 Million
2	Income Tax art 22 – Import	Exemption import tax for certain industries (431 business fields) until September 30, 2020.
3	Income Tax art 25 – Monthly Tax	Instalments Reduction 30% of Monthly Tax instalments until September 2020
4	VAT	Acceleration of VAT restitution for certain industries (431 business fields) and total VAT restitution less than IDR 5 Billion.
5	Company Income Tax Rate Reduction	Reduction Company income tax to 22% in 2020 and 2021, and reduction to 20% start from 2022. For specific Public Entities, company income tax could get 3% lower.
6	Final Tax for Micro Entities (PP23)	Final Tax for Micro Entities is borne by government

We still do Work from Home (WFH) during covid-19 pandemic. We build relation with our client and partners using social media by video call, email and by phone. We do call conference with our team every week.

If you have any questions regarding this or any of the other initiatives offered to those affected by the current disruption, please contact Ricky Jhonatan at ricky.jhonatan@sahatmt.co.id.