Supporting the Government, KPKI Requests that the Domestic Market Quota Reduction be Re-examined

JAKARTA - The Indonesian Tax and Customs Consultant (KPKI) expressed its support for the government's program to strengthen the customs area.

The Minister of Finance, Purbaya Sadewa, previously emphasized that tax and customs reforms are the main strategies to increase the productivity of the national economy while creating a healthy and competitive investment climate.

As a form of support, the Indonesian Tax and Customs Consultant (KPKI) expressed readiness to play an active role through the provision of consultation and input related to tax and customs policies. This step is considered to help the government in increasing state revenues while strengthening the governance of the customs area.

The Chairman of KPKI, Zulfikar Mahdanie, emphasized the importance of evaluating the government's latest policies.

"The government needs to review the latest PMK regarding the reduction of domestic quota in the customs area," he said.

According to him, the KPKI fully supports the government's efforts to strengthen the customs area. However, policy changes still need to consider their impact on industry and the national economy.

"We support the government's efforts to strengthen the customs area, but we hope that the government will also pay attention to the impact of this policy change on the industry and the national economy," he said.

The government itself has taken a number of strategic steps to strengthen the customs area. Among others, through the integration of the Customs-Excise Information System and Automation (CEISA) surveillance system and the appointment of the Electronic Trade Organizer (PMSE) as a collector of Income Tax (PPh) Article 22.

In addition, the government is currently revising the Minister of Finance Regulation (PMK) Number 131 of 2018 concerning the Bound Area. The regulation is still in the harmonization stage with the Ministry of Law and Human Rights.

The revision of PMK 131/2018 aims to increase the effectiveness and efficiency of the management of bonded areas, as well as strengthening the competitiveness of domestic industries.

In the change in the rules, the government plans to adjust the provisions regarding the expenditure of production results to other places in the customs area. If previously allowed a maximum of 50 percent of the previous year's realization value, the provision will be corrected to 25 percent for the domestic market.

The self-bonded area facility provides various fiscal incentives for industrial actors. Its management is regulated in PMK 131 of 2018 together with PMK Number 65 of 2021 concerning the Bonded Area.

The KPKI assesses that the synergy between government policies and industry stability is a crucial factor in maintaining the balance of economic growth.

"We support the strengthening of the customs area, but a re-examination of the domestic quota reduction is still necessary so that the impact on the industry and the national economy can be anticipated well," said Zulfikar.

With the support of various stakeholders, the government's program in strengthening the customs area is expected to run effectively and contribute to improving people's welfare.