Park By The Bay

A Cost-Competitive Location for Global Market

 MEETING AGENDA

1. Special Economic Zone

2. Business Process

3. Land Proposal

www.kendalindustrialpark.co.id
 SEZ
(Special Economic Zone)

www.kendalindustrialpark.co.id
 NO KBLI - BIDANG USAHA
32904 - Industri Peralatan
untuk Pelindung Keselamatan
21015 - Industri Alat Kesehatan Kelompok ini mencakup usaha pembuatan dan pengolahan alat
dalam Subgolongan 2101
www.kendalindustrialpark.co.id
DESCRIPTION
Kelompok ini mencakup usaha pembuatan peralatan untuk TAX HOLIDAY ✓
pelindung keselamatan, seperti pakaian pelindung dan pakaian
anti api, sabuk pengaman tukang kawat dan sabuk lain untuk
keperluan pekerjaan, pelampung, topi plastik yang keras (helm
bangunan) dan perlengkapan keamanan lainnya yang terbuat dari
plastik (helm olahraga dan segala macam helm sejenisnya),
pakaian pelindung kebakaran, tutup kepala pengaman dari logam
dan peralatan pengaman pribadi lain yang terbuat dari logam,
penyumbat telinga dan hidung (misalnya untuk renang dan
pengaman hidung) dan masker gas, masker non medis dan APD
termasuk face shield.
TAX HOLIDAY ✕
kesehatan terkait diagnosa medis dan produk lainnya dalam TAX ALLOWANCE ✓
subgolongan 2011. Kelompok ini mencakup industri produk
kontrasepsi untuk penggunaan eksternal, industri alat-alat
diagnosa medis seperti uji kehamilan, dan industri pembalut
medis, perban dan sejenisnya dan kapas kosmetik.
SPECIAL ECONOMIC ZONE
Fiscal Benefit in Special Economic Zone
Tax Incentives
A TAX HOLIDAY

All business entities with Main Activities in SEZ will get Corporate Tax Incentives
in the form of Tax Holiday, as regulated by PMK 237/PMK.010/2020 chapter 6
verse 2.

Tax Holiday will be given depending on Investment Value including Land Cost,
Building Cost, and any costs related to physical assets procurement, as explained
by the following table →

9 Tax Holiday Certificates received and 4 Tax Allowance Certificates received

Tax Holiday (IDR)

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Investment (Rp) Commercial
Investment Production
100 B – 500 B Period
Incentive Rate (%) (Land Purchase 100 100 100 100 100 100 100 100 100 100 50 50
+ Construction
+ Machineries
500 B – 1 T
Incentive Rate (%)
and Equipment 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 50
Purchase +
Physical asset)
>1T
Incentive Rate (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 50

CUT OFF
INVESTMENT VALUE

Investment Value
 Tax Holiday (USD)

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Investment (USD)
Investment Commercial
Production
Period
USD 6.4 Mio – 32 Mio (Land Purchase
Incentive Rate (%) 100 100 100 100 100 100 100 100 100 100 50 50
+ Construction
+ Machineries
USD 32 Mio – 64 Mio and Equipment
Incentive Rate (%) Purchase + 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 50
Physical
> USD 64 mio Assets)
Incentive Rate (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50 50

CUT OFF
INVESTMENT VALUE
Investment Value

Note : 1 USD = IDR 15,600

Fiscal Benefit in Special Economic Zone
Tax Incentives

B TAX ALLOWANCE

All industries with other activities in SEZ will get Corporate Tax Incentives in
the form of Tax Allowance, as regulated by PMK 237/PMK.010/2020 chapter
4 verse 1(b) and chapter 7.
Reduction in taxable income by 30% of the amount of
●
investment, pro rata at 5% for 6 years
● Accelerated amortization
Dividend distributions to nonresident shareholders
●
are subject to a reduced withholding rate of 10%
● Tax losses can be carried forward for up to 10 years
SEZ Facilities
Fiscal Benefit in Special Economic Zone
Simulation of Tax Allowance and Tax Holiday
a) Investment Value of Business Actors: IDR 100 Billion
b) Business Actors start operating commercially in the first year.
Tax Allowance c) Business Actors accelerate the depreciation of fixed assets (or investment value) of IDR 100 billion from 20 years to 10 years.
1 Assumption:
d) Business Actors take advantage of a reduction in net taxable income of up to 30 percent of the amount invested (ie: IDR 30 billion) on a pro-rata five
percent for six years of commercial production (ie: IDR 5 billion every year for 6 years)
e) Losses can be carried forward by up to 10 years *

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
In Rp (Million)
[ 1 ] Net Income (Penghasilan neto) exclude
8,000 8,000 8,000 10,000 10,000 10,000 15,000 15,000 22,000 22,000
Depreciation

[ 2 ] Accelerate Depreciation (Penyusutan yang

(10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000) (10,000)
dipercepat)

[ 3 ] 5% Reduction in net taxable income (5,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Taxable Income (Penghasilan Kena Pajak)
(7,000) (7,000) (7,000) (5,000) (5,000) (5,000) 5,000 5,000 12,000 12,000
[ 1 ] +[ 2 ] + [ 3 ]
Loss Carry Forward (Kompensai Kerugian)* (7,000) (14,000) (21,000) (26,000) (31,000) (36,000) (31,000) (26,000) (14,000) -
Tax Payable (Pajak) - - - - - - - - - -

Tax Holiday
2 Assumption:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
In Rp (Million)
Taxable Income (Penghasilan Kena Pajak) (7,000) (7,000) (7,000) (5,000) (5,000) (5,000) 5,000 5,000 12,000 12,000
Tax Payable (Pajak) - - - - - - - - - -

From the above example, assuming the Net Income for Pelaku Usaha for Y1 – Y3 = Rp8b , Y4 – 6 = Rp10b, Y7 – 8 = Rp15b and Y9 – 10 = Rp22b ,
the tax payable for tax holiday and allowance are both the same ie : 0.
Fiscal Benefit in Special Economic Zone

Value Added Tax (VAT) Import Duties

3
1 2 Import restrictions are not applicable in SEZ
LAND CONSTRUCTION COST
0% VAT (MAIN CONTRACTOR) 4
0% IMPORT
BUILDING MATERIAL
DUTY & IMPORT
TAX
1
5
0% IMPORT
0% VAT DUTY & IMPORT
TAX

FINISHED GOOD
0% VAT Regional Value Content (RVC)
DIRECT METHOD

11% VAT ASEAN Direct Direct

Overhead
Other
Raw Material
Cost
+ Labor
Cost
+ Cost
+ Costs + Profit

RVC = x 100%
Free on Board (FOB) Value

INDIRECT METHOD
❶ PMK 33/PMK.010/2021 chapter 23 verse 1 ❹ PMK 237/PMK.010/2020 chapter 39 and 40 Material Value,
❷ PMK 33/PMK.010/2021 chapter 23 verse 2 ❺PMK 237/PMK.010/2020 chapter 43 verse 2 Free on Board (FOB) Value _ Part of Non Originating Goods
❸ PMK 237/PMK.010/2020 chapter 44 verse 5 RVC = x 100%
Free on Board (FOB) Value
Non Fiscal Benefit in Special Economic Zone

INCENTIVE TREAT IN SEZ

Employment ● Within the SEZ will be established:
1. Wage council;
2. Trade/Labor Unions to create effective communication and harmonious
industrial relation;
3. Tripartite cooperation institution.

Immigration Special immigration treatment for foreign workers:

1. VoA (Visa on Arrival) could be extended 5 times
PMK 237/PMK.010/2020 chapter 127
2. Limited residence permit for foreigners and their family, and elder tourists
3. Residence permit for property owner

Land ● HGB up to 80 years

● Acceleration of procedures
PMK 237/PMK.010/2020 chapter 142

No Negative Investment List Indonesia Negative Investment List is not applicable in SEZ
UU No. 39/2009 chapter 38 (100% foreign ownership is permitted )

One-Stop Service Administered by SEZ Administrator

PMK 237/PMK.010/2020 chapter 58
 Business Process

www.kendalindustrialpark.co.id
Flow Chart of Purchasing Land

Temporary Letter Re-sign Letter of

Guarantee Establishment of
of Purchase Purchase Pay Installment 1
Payment in USD Local Company
Confirmation Confirmation
From local
Using foreign Using local company bank
company name company name account

Land Certificate PPJB (Sales Refund of

Land Handover Guarantee
Transfer (100% Purchase Payment to Foreign
(50% Payment)
Payment) Agreement) Company
Handover & Permit Flowchart

*Documents needed :
50% Payment Direct Construction
• Site Plan • Details of Fencing
Facility* • Layout Plan • Details of Main Gate
Land Handover Can immediately construct
• Floor Plan • Details of Culvert Across
• Building View & Section KIK Drains & Utilities
• Building Elevation • Details of Main Signage
• Guard House • Green Area
• Bin Center

Environment
Documents &
Domicile Letter Single NPU (Business Licenses
Deed of
NPWP (Taxation Business Entities
Business OPERATION
Establishment Permit
Number) Number (NIB) Number )
Building
14 Days 1 Day 1 Day 1 Day Permit 1 Day

60 Days**

Minimum permit process = 78 Days

**Depending on complexities
LAND
Land Maps Details
Land Plot
 Thank
Thank You
You