Updated Provisions on PPN for Deliveries of Battery-Powered Vehicles Borne by the Government: PKP May Now Be Granted Tax Overpayment Refunds

Earlier in 2023, the Minister of Finance (“Minister”) introduced Regulation No. 38 of 2023 on Value-Added Tax (Pajak Pertambahan Nilai – “PPN”) on Deliveries of Certain Types of Four-Wheeled, Battery-Powered Electric Motorized Vehicles (Kendaraan Bermotor Berbasis Listrik – “Battery-Powered KBL”) and Certain Types of Battery-Powered KBL Buses Borne by the Government for the 2023 Fiscal Year (“Regulation 38/2023”), which will hopefully realize the government’s goal of transforming Indonesia’s roads from the use of gasoline-powered vehicles to electrically-powered vehicles, as well as expand market demand for Battery-Powered KBL.[1]

However, in a bid to expedite the above-outlined objectives, the Minister has decided to issue Regulation No. 116 of 2023 (“Amendment......