New Non-Tax Government Revenue Bill

New Non-Tax Government Revenue Bill

30 August 2018

The Indonesian House of Representatives has approved a new bill ("Bill") relating to government revenue from non-tax sources ("PNBP"), and the Bill now awaits Presidential assent. The Bill is a response to a request from the Minister of Finance, Sri Mulyani, for a more robust platform for non-tax revenue collection and management. The Bill will replace Law 20/1997.

The objectives of the PNBP Bill are to improve the collection and management of PNBP, and provide more certainty to PNBP payers.  Some key provisions of the Bill are :


PNPB Payers


Law 20/1997 is silent with regard to who exactly must pay PNBP. The Bill clarifies this by stating that PNBP payers are domestic and foreign individuals and entities. The Bill expressly permits the collection of set and ad valorem PNBP levies from PNBP payers.


PNPB levies


Under Law 20/1997, PNBP levies were set by legislation (undang-undang) or government regulation (peraturan pemerintah). The Bill now permits the Ministry of Finance to set the levies through its own regulations (peraturan menteri). Thus, the Bill strengthens the Ministry of Finance's authority and regularizes the current practice, as previously a number of PNBP levies had been set by Ministry of Finance regulations without supporting legislative provisions.


PNPB minimum rates and relief


The Bill affords wide discretion on minimum PNBP levies and also on providing reliefs and exemptions to PNBP payers. Taking into account factors such as social benefit, government policy, force majeure and ability-to-pay, levies may be set at IDR 0 or 0%; waived; deferred; made payable in instalments; or reduced. There were no such dispensation provisions in Law 20/1997.

We expect that once passed as law, the Bill will be followed by government and Ministry of Finance regulations.  We will provide further updates as more information becomes available


For questions or comments, please contact:

Anthony Woolley - Foreign Legal Consultant, Indonesia:



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