- The immigration officer doesn't point out where nothing is wrong.
- Not difficult for foreigners to renew their licenses at SAMSAT(traffic police) by themselves
- The tax office is also undergoing a generational shift and the quality of service is improving with younger employees
- Free-trade agreements will facilitate customs clearance
The immigration officer doesn't point out where nothing is wrong.
If you live in Indonesia, you are bound to have a certain amount of interaction with the government, or in other words, the Kantor Imigrasi, in both your work and your daily life.
In order to enter Indonesia, you must go through the immigration process, and to obtain a work visa (Index C312) or a family visa (Index C317), you must go to the regional immigration office to have your photo taken and fingerprinted.
Warung Buncit a little south of Kuningan if you live in South Jakarta, or Jl. Merpati in Kuma Yorang if you live in Central Jakarta, the ones in ibukota propinsi (provincial capital) like Jakarta are classified as kelas1 (class 1) and those in Kabupaten (province) like Bekasi are classified as kelas2 (class 2).
When an immigration officer suddenly arrives at a workplace, apartment, or golf course and targets a Japanese expatriate or business traveler for visa deficiencies, it is said that most of the time it is a tip-off by an internal Indonesian employee, and the pattern of deficiencies pointed out is roughly fixed.
- Take aim at business travelers entering the field on a VOA (Index C213) or business visa (Index C211 single or C212 multi) to provide instruction and work.
- Target the next business traveler or a group of people from other companies who have entered the field on a VOA or business visa to provide guidance and work before the ITAS (Index C312) is granted during the handover period.
- After I moved from Jakarta to Cikarang, I was pointed out that my ITAS registered address remains Jakarta.
- I was pointed out for not carrying my passport even though I had an ITAS letter on me at the golf course during an internal competition.
- Despite having entered the country without a visa for 30 days, he was found going out of the hotel in Y-shirt slacks and leather shoes with a business bag.
In a sense, justice is on the side of the immigration officer, so as a foreigner living in Japan, the only preventive measure is not to create an opportunity to be suspected without sparing any expense or trouble.
In my case, I have never been seized by an immigration officer in Indonesia, but I was taken to a separate room many times after being questioned for my inadequacies at the immigration officer counter when I entered and left the country.
- Overstay 12, leaving the country safely with a fine of 3.6 million rupiah at the time.
- Social Budaya (Index 211B), I was suspected of working at the third time I entered the country, but my wife saved me and I entered the country safely.
- I got an EPO (Exit Permit Only) due to a change in the company I belonged to, but I couldn't get a VTT (Visa Issuance Permit), so I left Singapore every other month, and when I re-entered the country, they asked me for a 300,000 rupiah, but I refused.
In fact, the immigration officer doesn't point out where nothing is wrong, and it is foreigners themselves who have created some kind of cause for injustice.
In recent years, the response of immigration officer personnel has clearly changed to be friendlier, and even now, if you have a bad turn of events, you will be asked in an arrogant manner at the time of entering the country, "What are you doing in Indonesia? However, as a foreigner, you need to carry out the procedure in Indonesia fairly and fairly, remembering that you are in the position to work in Indonesia.
Not difficult for foreigners to renew their licenses at SAMSAT(traffic police) by themselves
In September, I went to Jakarta Central Police Station to change the address of STNK (vehicle certificate) and pay the vehicle tax, and I was impressed by not only the friendly response of the police staff, but also by the beautiful female policewomen in uniform with machine guns like Fujiko Mine.
The Jakarta Metropolitan Police Department (Kepolisian Daerah Metropolitan Jakarta Raya = Polda Metro Jaya) has been working hard to improve its image by assigning a strong and beautiful female policewoman, who symbolizes the Indonesian police, as its public relations officer on TV news. The traffic police, which has many opportunities to come into contact with the public, has a particularly "select group of elite".
When I lived in Bali, I got caught at a blind corner along the bypass in Sanur and at a turn in Denpasar almost every month, and I think if you are driving in Indonesia, you will get razia (crackdown) sooner or later.
In Jakarta, where traffic jams are heavy, stopping a car is getting more and more congested, so the mainstream is to crack down on motorcycles that can check SIM (driver's license) and STNK without taking up too much space.
For your reference, here are some of the situations where you might get caught in a crackdown.
- Bali Bypass Sanur or Denpasar Renon and get caught without renewing the expired license.
- I missed the no-trespassing sign in Kuta, Bali.
- They entered Suridman and were arrested at the entrance to Karet, knowing that it was 3in1 time from Benhil.
- It is pointed out that he stepped on the zebra zone just before entering the entrance to Tol Tangerang.
- Arrested as a result of trespassing in Jl. Hartono Raya while knowing that the odd-even regulation was being applied.
- It is pointed out that I did not pull left just before turning left from Rawamangun.
- I missed the no U-turn sign at Mangga Dua.
- I missed the no U-turn sign at Rasuna Said.
So I think it would be better to pay attention to the efforts of the Indonesian police, such as Samsat (traffic police) officers who have become much friendlier, rather than focusing on the negative aspects that resulted.
The tax office is also undergoing a generational shift and the quality of service is improving with younger employees
However, compared to 20 years ago, the tax office has become much cleaner and kinder, and it would be much more rude to take an oblique attitude to the tax office staff.
The young representative at the West Bekasi Tax Office was very helpful in explaining everything from how to issue the Faktur Pajak through the Onlinepajak system to how to pay the tax, which is a must for any business dealing with Japanese companies.
Overall, it is impressive that the tax department employees are young, and it seems like there is a good generational shift away from seniors with a negative image.
The tax system in Indonesia, especially the income tax system, is said to be complex, but if you look at the bylaws one by one, you can see that it is a very reasonable system.
Value Added Tax PPN
Value-added tax (VAT) is a system in which when you buy something you need, you have to pay 10% of the other party's VAT, so if you sell more than the amount you bought, you have to collect the same 10%, otherwise you will lose out in the current year. The point may be that it is the same as the consumption tax in the sense that it becomes a final consumer burden that does not generate sales.
Personal Income Tax PPH21
However, if you hire a freelance individual as a subcontractor, you will be taxed PPN21 on a progressive basis, just like your own employees.
Outsourcing to Indonesian freelancers is also subject to the personal income tax PPH21 and the tax rate is progressive, similar to karyawan tetap. If you outsource the contract with 10jt, for example, the taxable income is 50% of the gross income, so 10jtx50%x5%=250,000, but if the other party does not have NPWP, the taxable income is 6%, so 10jtx50%x6%=300,000.
Separate taxation PPH4(2)
Since the annual turnover is less than 4.8 Miliyar, a Final Tax of 0.5% is charged on the turnover.
In Indonesia, instead of calculating corporate tax between 12.5% and 25% of taxable income, 1% of sales is taxed as final tax (separate tax).
There is a 10% final tax on the rent of the office and the cost of renting the seminar hall, etc. However, there are cases where the renter is not aware of the taxation.
Domestic Services Withholding Tax PPH23
In the case of domestic service industry, there is a 2% PPH23 charge, but in the case of service industry like our company, there is no tax to pay here because it is withholding tax by the customer.
Free-trade agreements will facilitate customs clearance
If you are in the import/export business, how to get your goods through the customs (Bea Cukai) is an important issue that directly affects the cost of goods.
Indonesia's import tariffs are divided into four categories: the most essential: 0-10%, the most essential: 10-40%, the most common: 50-70%, and the most luxurious: 200%, with most of them ranging from 5% to 20%. However, if your proof of origin (Form-A or Certificate Of Origin) or transport certificate is incomplete, you may be suspected of being processed at the destination and stopped at the port.
The battle between customs officers who want to impose a lot of customs duties and foreigners who want to bring in cheaply has not changed in the past.
Although the main purpose of tariffs is to protect domestic industry, the recent trend of free trade agreements has led to the reduction or elimination of intra-regional tariffs, so the price difference between Japan and Indonesia for shochu is likely to be reduced to the level of transportation costs in the future.
Since Indonesia has already ratified the Free Trade Agreement and the Economic Partnership Agreement (FTA/EPA), preferential tariffs are available as long as Japan obtains a Certificate of Origin (Form-A). It is interesting to note that as long as the administrative process is done properly in Indonesian customs, the benefits of obtaining bonded factory status will be diminished, rather than hobbled.
In terms of bilateral relations between Japan and Indonesia, Japan's trade deficit is currently good, but in the future, the elimination of tariffs is likely to move forward within the framework of the Free Trade Agreement, Economic Partnership Agreement (FTA/EPA), and the Regional Comprehensive Economic Partnership for East Asia (FTA) RCEP.