The government provides import duties borne by the government (Bea Masuk Ditanggung Pemerintah/BM DTP) facility for certain industries affected by the Covid-19 pandemic.

The BM DTP facility is granted to accelerate economic recovery through increased productivity of certain industrial sectors, ensuring the availability of domestic industrial raw materials, and labor absorption. The BM DTP facility is also expected to promote economic growth, state revenues, and economic stability.

The provisions on the BM DTP facility are outlined in the Minister of Finance Regulation No. 68/PMK.010/21 concerning Import Duties Borne by the Government on Imports of Goods and Materials to Produce Goods and/or Services by Industries in Certain Sectors Affected by the Covid-19 Pandemic in 2021 (MoF Reg. 68/2021).

BM DTP refers to a facility of import duty payable paid by the government with the allocation of funds stipulated under the State Budget (Anggaran Penerimaan dan Belanja Negara/APBN) and/or Revised State Budget (Perubahan Anggaran Pendapatan Belanja Negara/APBNP). The subsidy budget for BM DTP is managed by the Import Duties Borne by the Government Subsidy Budget User Proxy (Kuasa Pengguna Anggaran Belanja Subsidi Bea Masuk Ditanggung Pemerintah/KPA BM DTP) stipulated by the Minister of Finance.

BM DTP may be granted for imports of goods and materials by industrial companies in certain sectors. In further detail, the types of goods and materials imported by companies in certain industrial sectors entitled to BM DTP must meet the following conditions:

i.	the goods and materials have not been produced domestically;
ii.	the goods and materials have been produced domestically but have not met the required specifications; or
iii.	the goods and materials have been produced domestically but the quantity is insufficient for industrial needs as per the recommendations of the relevant ministries/agencies.

Details of the types of imported goods and materials entitled to BM DTP are listed in Appendix B of MoF Reg. 68/2021. Moreover, the goods and materials eligible for the BM DTP facility must also not be included in the following four groups:

i.	goods and materials subject to 0% import duty;
ii.	goods and materials subject to 0% import duty as per international treaties or agreements, unless otherwise stipulated by the Minister of Industry;
iii.	goods and materials subject to anti-dumping import duties/temporary anti-dumping import duties, safeguard import duties/temporary safeguard import duties, countervailing import duties, or discriminatory import duties; or
iv.	goods and materials intended to be stockpiled in a bonded storage area.

BM DTP may also be granted for the release of goods and materials from outside the customs area to other places within the customs area from a bonded logistics center (Pusat Logistik Berikat/PLB)/bonded warehouses/bonded zones, and subsequently released to industrial companies in certain sectors. The procedures for the imports of goods and materials entitled to BM DTP under MoF Reg. 68/2021 are carried out as per statutory provisions in the customs sector.

Import Duties Borne by the Government for Certain Industries