ASDP Confirms Its Service Is Not Subject To 12 Percent VAT

JAKARTA - PT ASDP Indonesia Ferry (Persero) ensures that public transport crossing services are not subject or free from Value Added Tax (VAT) 12 percent to support community mobility and support the smooth running of logistics transportation throughout Indonesia.

"ASDP ensures that the crossing services it manages remain free from VAT, even though there was a discourse on increasing VAT by up to 12 percent," said ASDP Corporate Secretary Shelvy Arifin in a statement in Jakarta, quoted by Antara, Wednesday, January 8.

The exemption from VAT on water transportation services, including crossings, is an important step to ensure that tariffs remain affordable so that people throughout Indonesia can enjoy better mobility and logistical access.

He said that his party ensured that the policy would not have an impact on the tariff of ferry ships which were part of public transportation.

"We want to ensure that there is no increase in ferry ship service rates, because this service is included in the category of public transport services that are exempt from VAT according to regulations. This policy shows the Government's alignment with the community," said Shelvy.

Shelvy explained that the VAT exemption was a mandate from Article 4A paragraph 3 Letter J of Law Number 8 of 1983 concerning Value Added Tax, the latter was updated through the Law on Harmonization of Tax Regulations (UU HPP).

"This regulation confirms that public transportation services at sea, including ferry services, are part of important public facilities to support national mobility and connectivity," he said.

The impact of VAT exemption, continued Shelvy, is very strategic for various sectors, especially in reducing national logistics costs. Efficient sea transportation can help maintain the stability of goods prices, especially in 3T areas (advantaged, frontier, outermost) which depend on sea transportation modes for the distribution of basic necessities.

"We believe that VAT exemption is a concrete step to create logistical efficiency, so as to reduce the price of goods distributed to remote areas," explained Shelvy.

In addition, the exemption from VAT also strengthens ASDP's role in supporting community mobility and regional economic development. With a stable rate, it is easier for people to travel between regions, both for personal needs and economic activities.

It is hoped that this policy can increase public accessibility to sea transportation services that are the mainstay in mobility and trade.

ASDP added that even though it was free from VAT, the company continued to carry out other tax obligations, such as Article 15 Income Tax (PPh) of 1.2 percent of gross income from sea transportation services.

"We ensure that all tariffs applied always comply with applicable regulations, so as not to burden the community and at the same time support state revenues," said Shelvy.

To date, ASDP operates 37 ports and serves more than 300 crossings throughout Indonesia with more than 200 ships. Most of the ASDP-run routes, about 66 percent of which are pioneer routes that play an important role in connecting remote areas and supporting equitable development.

ASDP is committed to continuing to improve services so that people can enjoy safe, comfortable, and affordable sea transportation.

He admitted that his party was not only focused on competitive tariffs, but also on excellent service quality. This is in line with ASDP's vision to support maritime economic development and community welfare.

With the VAT exemption policy still in effect, ASDP is optimistic that it can continue to contribute in reducing logistics costs and increasing sea transportation access throughout Indonesia.

"We believe that logistic efficiency is key to strengthening the nation's competitiveness, and sea transportation plays a vital role in achieving that goal," Shelvy said.