TAX FLASH KIB CONSULTING July 2020

1. TAX FLASHKIB E-newsletter July 2020
The Covid-19 pandemic, coupled with the world geopolitical
situation that took place in the second quarter of 2020 slows down
the world economy. The growth of gross domestic product (GDP) of
most countries in the world weakened which reflected in the decline
of consumer spending. Covid-19 pandemic influences projections of
economic growth and conditions of public welfare. Indonesia's
economic growth in 2020 is projected to be minus (-) 0.4 percent to
1 percent. Economic recovery is still in a big uncertainty.
“Economic depression cannot be
cured by legislative action or
executive pronouncement.
Economic wounds must be
healed by the action of the cells
of the economic body – the
producers and consumers
themselves.”
~Herbert Hoover.
In This Issue:
• New Normal
• Tax Court
Service
Procedures
• The future of
SMEs
• KIB Webinar
The Long Road to Economy Recovery

2. “The Pessimist Sees Difficulty In Every Opportunity. The Optimist Sees Opportunity In Every Difficulty.”
– Winston Churchill
Wear mask!
Keep your distance. Avoid
the crowd
Wash your hand regularly
Over the past 3 months, the Covid-19 pandemic has caused a lot of
changes. To prevent further spread of the virus, people are encouraged and even
forced to stay at home. Studies, office work and even worship were
recommended to be done at home. Almost all countries urge their citizens not to
move outside the home if there is no urgent interest. Except, indeed for those
who have to go out and their activities cannot be done from home. The change
in community activities has made the business world quiet, such as tourism,
online transportation, retail sales and much more.
However, PSBB is judged not to be applied any longer to maintain
economic balance. Therefore, government implement a new system called “the
new normal”. New normal is a change in behavior to carry out normal activities
but adding health protocol to prevent Covid-19 transmission. It is hoped that by
frequently applying new habits wherever they are, it will become easier and
faster to become the individual and community norms. Thus we can work, study,
worship and other activities safely, healthily and productively.
However, the governor of DKI Jakarta, Mr. Anies Baswedan, has decided
to implement PSBB Transition after considering there are still places in the “red
zone”.
Work Places Public Places
- 50% proportion of employees
allowed to work in the office.
- Divides the work hours of employees
who are in the office at least two
different time groups (minimum gap
of 2 hours) to control capacity when
mobility comes and goes, breaks in
tall buildings.
- The number of participants or people
must be less than 50 percent of the
capacity of the place or room.
- 1 meter distance between people.
- Clean public places with disinfectant
before and after each activity.
Balance your diet
Exercise regularly
The New Normal

3. “It’s Not Whether You Get Knocked Down, It’s Whether You Get Up.” – Vince Lombardi
This pandemic has threw a big hit to some business vectors resulting several industries experience a
drastic decline. Below are some of business sectors affected by this COVID-19 outbreak:
The aviation sector feels the direct impact of the COVID-
19 pandemic. Enclosed in Kompas.com, PT Garuda
Indonesia Tbk (Persero) revealed the threat of
bankruptcy has haunted the national aviation industry.
While sticking to the regulation where aircraft occupancy
rate is very low, a large operational cost is waiting behind
it. Even if the aircraft does not take off, there are still
requirements to do routine maintenance. The threat of
bankruptcy that haunted the airline industry is evidenced
by the bankruptcy of airlines from Thai Airways, Thailand.
Source: nationthailand.com
Incessant movements of restricting activities outside caused the tourism
industry to lose revenue. The tourism industry is facing the pressure of
a COVID-19 pandemic as this outbreak forced business sector to close
temporarily. As a result, 70% of industry players are threatened with
bankruptcy or closed permanently. While unable to operate, tourism
industry players must pay for various things, including employee rights.
As for instance, the travel agents agreed to terminate the employment
of all their contract employees, while permanent employees got
reduction for their salaries.

4. “We may encounter many defeats but we must not be defeated.” – Maya Angelou
Automotive manufacturers in various parts of the
world were forced to close their production
facilities. At the same time, demand for
automotive has fallen sharply as people's
purchasing power has weakened. World car
manufacturers temporarily close some factories
for the safety of workers, this decision was taken
so that stocks do not accumulate in the middle of
declining demand. Based on data from the
Association of Indonesian Automotive Industries (Gaikindo), total car sales during January-March this year
fell 6.9% compared to last year.
The retail industry relies more on their offline selling
than online selling. With the shift in patterns and
behavior of public spending, the retail industry is
experiencing decline. The main problem that haunts the
retail industry is increasingly fierce competition,
coupled with this pandemic that makes many people
afraid to go to shopping. According to Deputy Chairman
of the Indonesian Retail Entrepreneurs Association
(Aprindo), the number of visitors coming to the store decreased by 50 percent. Some sectors are still
growing, such as food and drinks, but ones declining are a lot more. Now that some stores have reopened,
their operational costs are quite large compared with the number of visitors who come.
Hero has closed 26 stores and cut 532 employees
Source: Gaikindo

5. “We may encounter many defeats but we must not be defeated.” – Maya Angelou
The construction service sector as part of economic actors,
also felt a very big impact on the COVID-19 epidemic. The
most pronounced impact of the spread of the corona virus
is the slowing down of projects, starting with the
mobilization of materials, equipment, labor and an
increase in real costs coupled with the strict health
protocol issued by the Ministry of PUPR in the Instruction
of the Minister of Public Works and Public Housing (PUPR)
Number 02 / IN / M / 2020 established on 27 March 2020.
COVID-19 Effect on Construction Industry.
Source: Sihombing, Lukas. (2020). Dampak Covid-19 pada Industri Konstruksi dan Tantangannya Pasca COVID-19 di Indonesia:
Tinjauan dari sisi Manajemen Risiko Proyek, Program dan Portofolio.
Earnings obtained by construction entrepreneurs have decreased significantly, coupled with operational
and non-operational costs such as tax costs. Construction companies that have high levels of debt and low
income reserves can experience liquidity crisis and smaller companies or sub-contractors to lose / go
bankrupt quickly.
1. PERPRES NO. 54 YEAR 2020
Budget reallocation of Rp. 24.53 trillion
2. CABINET MEETING 14 APRIL 2020
Adjustment of the Ministries and Institutions TA Expenditures
of IDR 75.63 trillion or reduced by IDR 44.58 trillion

6. “Success is not final; failure is not fatal: it is the courage to continue that counts.” – Winston Churchill
TAX COURT SERVICE PROCEDURES
After the tax office closed due to Covid-19 pandemic for quite some time, tax court service finally open
their face-to-face services on June 15th
2020. However, not all tax services can be carried out face to face
and there are still some heath protocol applied.
STEPS:
1. Body Temperature <37.3oC
2. Wear mask
3. Maximum of 2 people per
service user services or
administrative proceedings-face
1. Shows notice / subpoenas, screenshots of
RUS, or Assignment Letters for trial service
users
2. Online queue evidence for users of face-to-
face administration services
Form can be downloaded at setpp.kemenkeu and send to:
• LoketA_bandinggugatan@kemenkeu.go.id
Subject : Daftar (Banding/Gugatan)_TanggalHadir
• LoketB_informasi@kemenkeu.go.id
Subject : Daftar Informasi (keperluan)_Tanggal Kedatangan_nama
perusahaan/pemohon
• LoketC_PK@kemenkeu.go.id
Subject : Daftar (PK/KMPK)_TanggalRencanaHadir
Schedule announcements will
be posted on the setPP website
1 day before. Specifically for
Appeals / Lawsuits (Counter A),
if you have not yet received a
schedule, please re-submit the
online queue request
Receipt of Appeal and /
or Lawsuit which due
during the prevention
period as referred to in
SE-11 / PP / 2020.
Appeals and / or
lawsuits that fall the
time after the
prevention period is
sent by POS /
registered expedition
Letters related to Appeals / Lawsuits
(Letter of Appeal Description (SUB) /
Response Letter, Rebuttal, Additional
data / supplementary data,
Declaration of Revocation, Other
letters) will be shipped via registered
POS / expedition.
Application or extension of
Law Attorney Power
Information about tax
dispute and other general.
COUNTER A COUNTER B COUNTER C
SUBMISSION OF
APPEAL / LAWSUIT
INFORMATION SERVICES RECONSIDERATION &
MEMORY REVIEW
SUBMISSION

7. “Every problem is a gift—without problems we would not grow.” – Anthony Robbins
The Ministry of Cooperatives and Small and Medium Enterprises stated that the spread of the corona virus
or Covid-19 has significant impact on small and medium enterprises which has been the backbone of the
economy. It is calculated that there are 56 percent decrement of sales. The hit has been from both supply
and demand sides. Reduction of working hours as well as employees and strict health procedures combine
with customer’s low power on spending has slow down the production.
Instead of stepping back, SMEs should think of this pandemic as the new stepping stone to move forward.
In this period, businesses should be sharp in decision making as there is the needs to adapt and reorganize
their business in this disruptive era. The uncertainty in several areas of the business including finance,
operations, employees, and technology makes the company need to rethink of the strategies applied to
minimize current and future risks. The priority of the company is expected to be altruistic, which is to adjust
to the needs of the community. SMEs should not be afraid on touching new aspect at where the demands
are.
SMEs are expected to adapt to the new transformation which requires using more of digital technology and
less physical contact. Digital technologies will allow SMEs to reach as many potential customers and
networks with a relatively low cost.
The Future of SMEs

8. “Business opportunities are like buses, there’s always another one coming.” – Richard Branson
On the 25th
of June 2020, KIB Consulting held a virtual seminar “Strategi untuk Bertahan dan
Berkembang di New Normal”.
The COVID-19 pandemic, which has taken place since February 2020, has brought more uncertainty to
businesses. This uncertainty affects the economic, physical and mental health of the people. As a result of
the pandemic felt by many parties, including PT. Pan Brothers Tbk. However, the extraordinary enthusiasm
applied by management in the midst of implementing strict Health protocols, in fact makes the problem an
opportunity for the company.
One of the breakthroughs made by PT Pan Brothers Tbk. was product diversification in March 2020 when
they started producing personal protective equipment (PPE), for domestic and export usage.
KIB WEBINAR
“Strategi untuk Bertahan dan Berkembang di New Normal”.

9. “There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth Godin
From what was explained by Mrs. Anne Patricia Sutanto, the Vice CEO of PT
Pan Brothers Tbk and interactive dialogue with participants, we can draw
conclusions:
1. Think optimistically.
Opportunities are always there, including in every difficult situations.
Companies can interpret opportunities into appropriate strategies to
bring the company to continue to grow
2. Hard work and discipline improve our work, all at every level of
management and workers.
3. Communication with the authorities / government, needs to be done
through appropriate communication channels, for example through
existing business associations, so as to overcome the problems of the
business world that occur, can be used to enter interests and find a
way through agreements that may be made / revised.
4. Use a third party that is asked to find a way out of certain problems,
may be needed in the business world.
Contact Us
Phone:
(62-21) 2929 5870-73
Bambang B. Suwarso
bambang.suwarso@kib-
consulting.com
Rachmat Kurniawan
rachmat@kib-
consulting.com
Yosefine Amelia
yosefine@kib-
consulting.com
Raden Roro Ratna
Indah Wulandari
wulan@kib-
consulting.com
Addresses:
North Jakarta -14450
The Koppel
Building Suite IB.
Jalan Pluit Selatan Raya no. 10
Gold Coast Tower
Eiffel Unit N
Pantai Indah Kapuk
www.kib-consulting.com
Disclaimer:
The facts and opinions stated or expressed in this
publication are for information purposes only, and
are not necessary and/or must not be relied upon as
being to those of the publisher or of the
Institutions for which the contributing authors
work.
Although every part of content has been taken to
ensure the accuracy of the information contained
within this publication, it should not be by any person
relied upon as the basis for taking any action or
making any decision.
KIB Consulting and its representative, cannot be
held liable or otherwise be responsible in any way
for any advice, action taken or decision made on the
basis of the facts, surveys, and opinions stated or
expressed within this publication.

10. “There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth Godin
PT. Konsultan Indonesia Bersama is a boutique company serving Finance, Business,
Accounting and Tax Advisory since 2008. KIB has been immensely successful in creating
a local business network of small-medium-and-big businesses. We highly adept
intelligent workforce that can help a company achieve their mission-critical projects
and goals. Keeping pace with projects and being on the look-out for every opportunity
to grow with our clients has become our mission statement. KIB commits to bring the
best suited services for our clients and stakeholders.
All of our resources are multifaceted and come with years of commended
performance. Project completion rate of our consultants is 97%, 3% is attributed to
unforeseen situations like changes of clients’ decision issues, natural disaster, etc. We
appreciate the experience that our team bring and together we thrive to grow and
prosper together.
About Us
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