MINISTRY OF TRANSPORTATION’s MEETING ON DISCUSSING THE PREPARATION OF PERMENDAG NO. 82/2017

MINISTRY OF TRANSPORTATION’s MEETING ON DISCUSSING THE PREPARATION OF  PERMENDAG NO. 82/2017

Directorate of Sea Traffic and Directorate General of Sea Transportation of Ministry of Transportation initiated a meeting of stakeholders discussing the preparation of the regulation of the Minister of Trade (Permendag) No. 82 year 2017 which among others regulate the obligation to use the National Sea freight services for coal and palm oil exporters. The meeting was attended by the Director of Export Facilities of Ministry of Trade as well as representatives of K/L related from Kemenko-Economy, Directorate General of Taxation, Directorate General of Customs and Excise, etc. This meeting is suggested on the request from INSA (Indonesian National Shipowner Association) who asked Kemenhub for the implementation of Permendag 82/2017 involving multistakeholder in order to be prepared in advance.

The meeting discussed the process of the implementation of Permendag 82/2017 that will be realized on May 1st 2020. To this day, the technical guidance (Juknis) of Permendag is being compiled by the Ministry of Trade. In addition, the Ministry of Trade also reported having held several meetings between K/L discussing the tax treatment related to the use/leasing of national vessels. The Directorate General of Taxation conveys the legislation on taxation which related to the use/rental of national vessels will certainly impact on the party of national companies, in this case members of INSA to be able to fulfill the demand for the ship If the 82/2017 Permendag will be enforced. The discussion on tax treatment, especially the VAT determination of the vessel's rental/purchase service is still being discussed.

In the meeting, APBI was represented by Hendra Sinadia (Executive Director) accompanied by a team from the Marketing Committee & Logistics, namely Fery Prasetyo (from Indominco Mandiri), Nyoman Oka (Adaro), and Jonny Djajadi (Kideco Jaya Agung) delivered a few things:

  • Since the beginning, APBI is aware that the government's desire to improve the role of national shipping business services but certainly the policy needs to pay attention to the well-being of the export and cannnot cause additional financial burden for coal exporters, where coal is the top export commodity.
  • In the discussion, APBI asked to continue to be involved in the process so they can provide constructive feedback for the policy to be done and won’t raise concerns from buyers/importers abroad. This is important because the use of national vessel's policy gained high attention from the parties abroad.
  • The most crucial thing is on the database remembering the accuracy data could be an important capital for proper drafting on the policy. Since the Permendag 82/2017 published, APBI facilitates several meetings with INSA, buyers, and Kemendag to discuss the data that could be used for reference to the policy drafting. There are several references that have been on file such as data export in Kemendag, data on ship usage in Kemenhub, export data in the Ministry of Energy and Mineral Resources, data on the Directorate General of Customs, etc.

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