AmCham Update
AmCham Update Vol. 3 #80
4th Jab Considered, New Palm Oil Rules, Health Sector Tax Incentives Extended
Jul 25, 2022

4th Jab Being Considered

The government is considering a fourth dose of the Covid-19 vaccine for the general public due to predictions of a prolonged Covid-19 pandemic. Griffith University Australia epidemiologist Dicky Budiman said additional vaccine doses will ultimately depend on efforts to reduce the transmission rate of Covid-19.

For example, if the world’s second vaccination doses reach 70 percent by July, it will significantly reduce the transmission rate of sub-variants, including BA 2.75. However, Dicky said the fourth dose is essential because there are at-risk community groups, including elderly and comorbid people and workers in the health sector. The fourth dose has been proven to reduce Covid severity up to 64 percent, and deaths by 72 percent.

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Ministry of Trade to Revoke Palm Oil DMO and DPO

The government is to withdraw the domestic market obligation (DMO) and domestic prices obligation (DPO) to boost crude palm oil (CPO) exports and raise fresh fruit bunches (FFB) prices, said Minister of Trade Zulkifli Hasan. The policies were first imposed to stabilize prices and cooking oil supplies in the local market. However, in May the policies along with the CPO export ban caused an oversupply in FFB harvesting and prices plummeted to only Rp 1,200 per kilogram. Before revoking the policies, the Ministry will ensure domestic palm oil companies have fulfilled domestic demands.

The Indonesian Palm Oil Farmers Association (Apkasindo) has positively responded to the plan, but noted export levies and flush out policies have also impacted FFB prices, not just the DMO and DPO. If all the above policies are lifted, FFB prices could increase significantly in two weeks, Apkasindo said.

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Government Extends Health Sector Tax Incentives

The government has extended the period of health tax incentives until December 2022, as an effort to cushion the impact of Covid-19 in Indonesia. The extension replaces Minister of Finance Regulation 226/PMK.03/2021 which ends on June 30, 2022 through the issuance of PMK-113/PMK.03/2022, and tax incentives for taxpayers affected by the pandemic based on PMK-3/PMK.03/2022 which ends at the end of June through the issuance of PMK-114/PMK.03/2022.

Director of Counseling, Services and Public Relations of the Directorate General of Taxes (DGT) Neilmaldrin Noor said there are no changes to the types of incentives, and that those contained in PMK-226/2021 such as the incentives for VAT borne by the government (DTP) for the delivery of goods required in dealing with the Covid19 pandemic, and PPh facilities for human resources in the health sector, were all to be extended until December 31. Tax incentives in PMK-3/2022, such as exemption from the collection of income tax article 22 imports (72 KLU), reduction of income tax installments article 25 (156 KLU), and final income tax for construction services (DTP), will also be extended until December.

However, in PMK-113/PMK.03/2022, there are some changes from the previous regulations, including the relaxation of reporting replacement tax invoices in 2021 and 2022 to a maximum of December 31, 2022 and December 31, 2023. Whereas in PMK-114/PMK.03/2022, the reporting party on the realization of final income tax of DTP has now been delegated to the Director General of Water Resources, Ministry of Public Works and Public Housing.

Related link:

WHO Declares Monkeypox Emergency

The World Health Organization has declared the monkeypox outbreak a Public Health Emergency of International Concern (PHEIC) – a significant threat to global health that needs international responses. The symptoms include fever, swollen lymph nodes, and rashes. There are more than 14,000 cases in over 70 countries, eight of which were found in Singapore.

However, there have yet to be any deaths due to monkeypox. No cases have been found in Indonesia, but the government has prepared two laboratories to detect monkeypox, and surveillance is being carried out at foreign arrival gates.

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AmCham Cares: Edelman Global Advisory

The Edelman Global Advisory (EGA) Indonesia team has adopted three trees in Jambi through the Pohon Asuh tree adoption program managed by Indonesian NGO KKI Warsi. This initiative is inspired by the economic and social significance of forest conservation to local communities, which made EGA realize even more that every year is another environmental challenge for our beloved earth, and that it should start implementing this into concrete action.

As the first step, EGA wanted to start small with a spark of hope that its tree adoption could give a small-yet-meaningful contribution to the local communities and unique flora and fauna inhabitants of Rantau Kermas, Jambi. While the seeds grow and join other forest canopies, the team looks forward and encourages everyone to take either small or big actions for the earth; our one and only home.

EGA thanks KKI Warsi for this amazing opportunity, and trusts its wisdom and experience in nurturing EGA's Surian Ambar, Medang Regis, and Bintang seeds. Let’s support and save our planet.

USTDA Virtual Workshop: US-Indo-Pacific Standards and Technology Cooperation Program

The US Trade and Development Agency (USTDA) will conduct two virtual workshops on Indonesia’s digital healthcare transformation and best practices in the regional global context. Innovation and digitalization in healthcare requires regulators and practitioners to respond quickly to new developments across the sector.

The workshops, on July 27, 8.30-10.30 WIB and August 3, 8.30-10.30 WIB, will be co-organized by the Ministry of Health. Participants will engage with key Indonesian and US regulators and industry experts to share technical advice and best practices for implementing policies that advance healthcare standards, procurement, and innovation goals.





Now is the Time to Join AmCham!

Now is the Time to Join AmCham!

We offer a full slate of meetings, events, and information for our community   online. But we can only do this through the support of our members. If    you are not yet an AmCham member, please join now.

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AmCham Office and Events

AmCham Office and Events

The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.





What is Your Company Doing on COVID-19?

Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.

Stay well

We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy

Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.

AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.