Govt. Tightens Provision of Fiscal Facilities to KK or PKP2B Contractors

The Minister of Finance (“Minister”) has issued Regulation No. 116/PMK.04/2019 on Import Duty Exemptions and Dispensations and/or Value-Added Tax Exemptions for Imported Goods in Relation to Contracts of Work or Coal Contracts of Work (“Regulation 116/2019”) in an effort to tighten up requirements which should be met by contractors of Contracts of Work (Kontrak Kerja – “KK”) or Coal Contracts of Work (Perjanjian Karya Pengusahaan Pertambangan Batu Bara – “PKP2B”) in order to obtain said exemptions and/or dispensations.[1]