At Remidian & Partners, we understand the complexities involved in navigating Indonesia’s regulatory landscape, especially when it comes to investment facilitation and import duty exemptions. One of the key benefits for businesses, particularly those involved in large-scale investment projects, is the ability to obtain a Masterlist—a vital document that provides tax and import duty exemptions on goods and machinery necessary for your project’s success or other Facilities.
Masterlist
The Masterlist is an approved list of goods, materials, and machinery that businesses can import duty-free under Indonesia’s Investment Coordinating Board (BKPM) and Online Single Submission (OSS) system. This facility is essential for businesses seeking to reduce operational costs, improve efficiency, and comply with Indonesia’s regulatory framework.
Why is the Masterlist Important?
- Cost Reduction: With the Masterlist, businesses can import machinery, capital goods, and raw materials without paying hefty import duties, significantly lowering operational costs.
- Improved Cash Flow: The exemption from taxes and duties allows companies to allocate their capital more efficiently, improving liquidity for other essential areas of the business.
- Streamlined Operations: The Masterlist ensures a smoother import process by securing pre-approved exemptions, avoiding delays and potential fines during customs clearance.
- Support for Investment Projects: Particularly beneficial for businesses involved in foreign direct investment (FDI) or national strategic projects, the Masterlist is an essential tool for companies looking to establish or expand operations in Indonesia.
Who is Eligible for a Masterlist?
Generally, companies that are involved in projects or businesses within priority sectors and are engaged in activities that contribute to Indonesia’s economic development may qualify for the Masterlist. Examples including but not limited to:
- Manufacturing industries (automotive, electronics, textiles, etc.).
- Energy and Infrastructure projects.
- Technology and Research.
- Health and Pharmaceutical industries.
- Agricultural development.
How Remidian & Partners Can Help
Our team at Remidian & Partners offers comprehensive support in the Masterlist application process, ensuring that your business meets all the regulatory requirements. Our services include:
- Assessment of Eligibility: We review your investment project and business operations to ensure you qualify for Masterlist benefits.
- Documentation Preparation: We assist in gathering and preparing all necessary documents, including those related to your business license, project plans, and imported goods specifications.
- Submission and Coordination: Through our expertise with the OSS platform and BKPM regulations, we handle the submission process and liaise with relevant government bodies to secure the necessary approvals.
- Compliance Advisory: We provide ongoing support to ensure that your imports align with the regulatory framework, avoiding delays or penalties during customs clearance.
Facilities
Indonesia offers a variety of incentives and facilities that help businesses reduce costs, streamline operations, and ensure regulatory compliance. These facilities are available for companies in priority sectors, such as manufacturing, infrastructure, energy, and more. Below are key types of facilities that we assist with:
- Tax Incentives:
- Tax Holidays: Long-term corporate income tax reductions or exemptions for businesses in eligible sectors.
- Tax Allowances: Reductions in taxable income, providing relief for businesses that meet certain investment or employment criteria.
- Value Added Tax (VAT) Exemptions: For companies importing goods and raw materials to support their production processes.
- Import Duty Exemptions:
- Masterlist Facility: Exemptions on import duties for machinery, capital goods, and raw materials used in manufacturing or infrastructure development projects.
- Customs Facilities: Special import duty treatments for companies engaged in export-oriented industries or certain economic zones (e.g., Free Trade Zones, Bonded Zones).
- Investment Licensing:
- Fast-Track Business Licensing: Through the OSS platform, businesses can secure required permits and licenses quickly, reducing the time needed to start operations in Indonesia.
- Simplified Procedures: For foreign investment companies (PMA), access to licenses, environmental permits, and land-use permits are streamlined via OSS.
- Location and Infrastructure Support:
- Special Economic Zones (SEZs): Businesses operating in SEZs enjoy additional incentives such as easier licensing, infrastructure support, and tax breaks.
- Industrial Estates: Investors are given access to ready-to-use industrial zones that come equipped with infrastructure like roads, electricity, and water.
- Investment Guarantees:
- Investment Protection: Through bilateral and multilateral treaties, businesses investing in Indonesia receive guarantees that protect their assets and legal standing.
How Remidian & Partners Can Help
At Remidian & Partners, we offer end-to-end assistance in obtaining these facilities, ensuring that your business maximizes the available opportunities to reduce operational costs and expedite growth. Our team provides:
- Eligibility Assessments: We evaluate your business model and investment plans to determine which facilities you qualify for.
- Document Preparation and Submission: We handle all the necessary paperwork, applications, and communications with relevant authorities.
- Compliance and Legal Support: Our legal expertise ensures that your business complies with all relevant regulations throughout the application and approval process.