By Regulation of the Minister of Finance Number 116/PMK.04/2019, the provision of fiscal facilities such as the exemption from import duty and value added tax (VAT) on the import by coal companies is tightened. Several provisions are aimed at contractors which want to receive VAT exemption. The provision includes the period for exemption from import duty on imported goods in a contract of work and coal mining business cooperation agreement (PKP2B).
The provision is a part of the implementation of the Law on Mineral and Coal Mining related to the implementation of mineral and coal mining business activities, contract of work or PKP2B in order to be able to make the change of form of mining business to a special mining business permit. The inclusion will ease taxation and customs services in the mineral and coal mining sector.
Moreover, the facility of incentive or exemption from import duty and VAT applies since the signing of contracts. The exemption continues to be given until the end of certain contracts. Those contracts are contracts signed before 1990, which set out the provision of incentive or exemption from import duty on imported goods in the context of PKP2B, which do not set out the provision on the period for the provision of incentive or exemption from import duty and PKP2B contractors the imported goods of which are owned by the state.
Source : https://legalcentric.com/content/view/142230