Tax Flash KIB Consulting Sep 2020

1. TAX FLASHKIB E-newsletter September 2020
Finance Minister, Sri Mulyani
Indrawati, stated that
Indonesia is entering the
abyss of recession after the
prediction that Indonesia's
economic growth in the third
quarter would still be negative in the range of minus 1.7 percent to
minus 0.6 percent. In detail, until the end of August 2020, the state
revenue was recorded at Rp 1,034.1 trillion. Compared to the
realization in the same period last year, which was IDR 1,190.2
trillion, our economy growth are contracted by 13.1 percent.
Entering into a recession period certainly has an impact on the
economy, which indirectly also affects the community, ranging from
increasing unemployment due to mass layoffs to low inflation due
to the loss of people's purchasing power. Moreover, cases of the
spread of Covid-19 continue to rise until now.
“I wish there was an easy
solution to these issues but
there isn’t. My ask is to do the
best you can. I also
recommend that you not fall
into the temptation of having
every waking hour be a work
from home hour just because
it can be.”
Sam King - CEO of VeraCode
In This Issue:
- Second Wave of
Large Scale Social
Restrictions
- This month
business
- E-Bukpot 23
- E-Faktur 3.0
- Proposing Changes
in Tax Regulation
for Certain Industry
INDONESIA ECONOMY ENTERING RECESSION
ZONE

2. SECOND WAVE OF LARGE SCALE SOCIAL RESTRICTIONS
Jakarta, September 13, 2020, Anies Baswedan, the governor of DKI Jakarta announced to tighten PSBB
(Large-Scale Social Restrictions) for two weeks starting Monday (14 / 9/2020) until September 27, 2020.
As of August 30, 2020, there were 7,960 active cases of COVID-19 in Jakarta and as of September to the
first 12 days, there was an increase of 3,864 active cases of COVID-19 or an increase of 49% compared
to the end of August. The regulation is stated in the DKI Jakarta Governor Regulation No. 88 of 2020
concerning Amendments to the Governor Regulation Number 33 of 2020 concerning Implementation of
PSBB in Handling COVID-19 in DKI Province.
TRANSPORTATION
 The odd-even license plate activities are
eliminated
 Passengers and the frequency of public
transportation are limited to a maximum of 50
percent of capacity.
 Car passengers are limited to a maximum of 2
people in one row of seats, unless they come
from one family who lives in the same place.
 Still allow application-based transportation to
work transporting people and goods. However,
by still implementing strict health protocols.
 SIKM is not enforced.
 Vehicle free day (HBKB) or CFD is eliminated.
PUBLIC PLACES
 Markets and malls may operate with a
maximum visitor capacity of 50 percent.
 Operations of entertainment venues, recreation
areas, city parks, and RPTRA are closed.
 Gathering of people at the same time should not
be more than 5 people.
 Wedding receptions, weddings are only held at
the KUA or civil registry office.
 Public sports facilities are closed, sports are only
allowed to be done independently at home.
 Places of worship in the red zone are closed,
only places of worship in settlements can be
opened with a maximum visitor capacity of 50
percent.
 Restaurants and cafes may only serve delivery
orders, may not serve dine-ins.
 All public facilities are closed.
OFFICES & SCHOOL
 11 business sectors, foreign countries
representative offices, international
organizations, BUMN / BUMD that are
participating in handling Covid-19, and
community organizations engaged in disasters
are allowed to operate by limiting the number
of employees to a maximum of 50 percent.
 Central and local government offices or
agencies limit the number of employees to a
maximum of 25 percent. If a positive case is
found for an office, the office building will be
closed for the first three days.
 Schools are closed, teaching and learning
activities are carried out online.
 Covid-19 patients should be isolated independently
in the designated places (self-isolation is eliminated).
 Individuals who do not wear a mask once will be
sentenced to social work for 1 hour or a fine of Rp.
250.000. If twice, will be sentenced to 2 hours of
social work or a fine of Rp. 500.000, and so on.
 If businesses violate the regulation, it then will be
punished with 3x24 hours of closure. If businesses
violate the health protocol twice, there will be an
administrative fine of IDR 50 million, up to the
heaviest penalty, namely revocation of your business
license (if you are late paying fines for more than 7
days).

3. This month Business
The income of workers across the world will have
fallen by an average 10.7% in the first nine months of
this year compared with the same period last year,
according to the International Labour Organisation.
That amounts to $3.5trn. The percentage of working
hours lost because of COVID-19 is most acute in Latin
America, followed by South Asia. The ILO’s outlook for
the last three months of 2020 has “worsened
significantly”. Nike reported an 82% jump in online
sales for the three months ending August 31st, year on
year. Sales at its stores, most of which were open
during the quarter, remained tepid because of social
distancing measures.
Adverse impacts of COVID-19 on the country’s economy occurs in the sectors below:
 Travel industry
Popular holiday destinations in Indonesia has grappled with cancellation from hundreds
to thousands of tourists, incurring losses worth trillions of rupiah. The Indonesian Travel
agent Association (ASTINDO) recorded an almost 90 percent drop in sales due to
cancelation. These cancelations directly affected the livelihood of tour guides.
 Hotel Industry
PHRI chairman, Hariyadi B Sukamdani, said that hotel occupancy rates have plunged well
below the seasonal average across overall occupancy rate and some hotels had shut
down operations, laying off more than 5.000 workers, as their occupancy rate had
plunged to below 5 percent.
 Aviation Industry
Indonesian airlines have seen a drastic decline in passenger numbers since early March
2020, prompting many to take efficiency measures and laying off their employees. All
airlines had cut their flights and routes by 50 percent or more because of drop of in
passengers. State-owned airport operator PT Angkasa Pura 1(AP1) reported flight
cancellation affecting financial losses on its operation.
 Food and beverages industry
PT Moka Teknologi Indonesia, a homegrown start-up that provides digital cashier to
more than 30.000 merchants in Indonesia, reported that out of the 17 cities it observed,
F&B industry in 13 experienced a significant decrease in daily earnings. Major restaurant
chains that employ thousands of workers in total have chosen to temporarily shut down
operations. Among them are Ismaya Group, which has more than 20 restaurants brand
with more than 60 outlets in the country, and the Boga Group, which runs more than
150 restaurants and employs more than 5.000 people.

4.  Shopping centre
Shopping Center Tenant Association (Hippindo) declared that number of malls visitors
had drop by up to 50 percent following announcement of positive COVID-19 cases.
Trade Improvement indication: Increment in online trading
Even though it is a difficult state, every business has its own vision of success and its own
challenges in achieving it, for those who believe progress is always possible. For those on a
mission who have the courage and perseverance to build for the future, even in uncertain
times.
Actual
entrepreneurs
think in years.
Not in quarters!!

5. E-BUKPOT 23
Starting August 1, 2020, all taxpayers who carry out transactions related to Income Tax Article 23/26 and
are registered at the Pratama Tax Service Office (KPP) throughout Indonesia are required to produce
withholding evidence and required to submit periodic Article 23 and/or Article 26 Income Tax Return
through e-Bupot. This obligation is stipulated in the Decree of the Director General of Taxes Number
KEP-425 / PJ / 2019.
Referring to the Regulation of the Minister of Finance (PMK) Number 12 / PMK.03 / 2014 concerning
Evidence of Income Tax Withholding and / or Collection, The e-Bupot 23/26 application is software
provided on the website of the Directorate General of Taxes (DGT) or a certain channel determined by
the DGT which can be used to:
• Produce withholding evidence
• Prepare and submit periodic Article 23 and/or Article 26 Income Tax Return
• All of that is made in the form of electronic documents
Through this electronic system, the process of producing withholding evidence and submitting periodic
Article 23 and/or Article 26 Income Tax Return has become easier as the evidences will be stored in the
DJP administration system. For the Directorate General of Taxes or DJP themselves, the existence of this
e-Bupot system certainly makes it easier for the authorities to supervise taxation.
2. Application for Digital Certificate
1. Digital Certificate issuance
Tax Office Taxpayers
Go to website: djponline.pajak.go.id
Go to menu e-Bupot
 Produce withholding evidence
 Prepare periodic Article 23
and/or Article 26 Income Tax
Return
 Submit periodic Article 23
and/or Article 26 Income Tax
Return
Electronic Receipt

6. E-FAKTUR 3.0
The national implementation of e-Faktur 3.0 application will be held on October 1, 2020. This e-Faktur
3.0 will replace e-Faktur 2.2 which is considered out of date. All taxpayers can download the latest
application at https://efaktur.pajak.go.id
There are at least 4 new features in the e-Faktur 3.0 application, namely prepopulated input taxes,
prepopulated Import Declaration (PIB), prepopulated tax return (SPT), and facility stamp code
synchronization. Prepopulated here means that it has been provided by the system. This prepopulated
concept does not contradict the self-assessment principle in the Law on General Provisions and Tax
Procedures.
E-Faktur 3.0 certainly helps taxable entrepreneurs (PKP) to fill periodic value-added tax (VAT) tax return,
especially form 1111 B1 for import declaration and form 1111 B2 for input VAT. Apart from that, the
application also allows a link between invoice creation and tax return reporting.
Through this system, DJP only provide the data for the taxpayers, the task of calculating, reporting, and
paying tax obligations remains in the hands of the taxpayers, not in the hands of the DJP.
It is expected that the full implementation of e-faktur 3.0 on October 1 will completely eradicated various
problems of tax invoices, both fictitious tax invoices or tax invoice manipulations that repeatedly harm
state finances and there will be no more input errors that are detrimental to tax payers, and tax payers
are able to completes the Periodic VAT tax return completely, correctly and clearly.

7. Proposing Changes in Tax Regulation for Construction service
Every business is unique and sometimes the regulator need input so that the current
regulation can adapt with the regular changes. In September 2020, based on our Academic
analysis for Construction sector, Ministry of Finance agree to change below regulation:
1. Reduction in Final Tax rate for construction service
2. Exemption for VAT withholding (WAPU PPN) for transaction among BUMN / SOE (State
owned enterprise) and its affiliated companies.
During FGD (Focus group discussion) on September 23, 2020, our team become
spokesperson. We are here for client, applying our deep sector knowledge, business,
financial tax expertise to help the client look to the future.

8. You might not outrun a train, or
leap over buildings. You might not
be a superhero. But you are
superhuman. You built civilisations
through employment and started
your own business.
You. The pioneer, the inventor, the
dreamer. And when the going got
tough, you became the teacher, the
volunteer, the healer. All while
moving the economy, and the
world, forward.
Imagine what you could do if
technology pulled out all the stops,
so you can become all that you can
become.
You’re made for bigger things.
Business inside
1. Need money intervention to boost the consumption
2. New normal does not need large space for an office. It needs more advanced
technology which can accelerate daily work.
3. Better residential property is more attractive compare the commercial one
4. Creative and innovative person is more important today. Only selected people
will become the winner.

9. Tax and Custom Consulting
Diagnostic Review
Planning
Compliance
Dispute
Audit
Objection
Appeal
Tax ruling
Tax Conciliation
Business Consulting
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Investigation
Merger & Acquisition
Financial Valuation
Due diligence:
Operational & Legal
Accounting & Tax
Outstanding debt collection
Business & Asset Appraisal
Transfer Pricing Documentation
(TP-Doc)
Company Setup & Liquidation
Copyrights & Patent Dispute
Copyrights & Patent Registration
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