In order to increase the competitiveness of Indonesian State Securities in the international market, on 11 May 2018 the Ministry of Finance issued regulation No. 46/PMK.010/2018 regarding Income Tax Borne by Government on Interest or Proceeds of State Securities issued in International Market and Third-Party income on Service Provided by Government in Issuance and/or Buyback/ Exchange of State Securities.
The income tax borne by Company is as follows:

• Income tax due on income in the form of interest or proceeds from State Securities, including discounted state securities issued in the international market; and
• Income tax due on income from Third Parties, including fees for services of third parties and payment on expense incurred in conducting issuance and/or buyback/exchange of state securities in the international market.

The securities referred to are as follows:

• State Bonds, i.e. marketable securities for debenture in foreign exchange guaranteed by interest and principal payment by the Government of Republic of Indonesia according to the effective period based on the prevailing regulation regarding state debenture; and
• Sharia state marketable securities or state sukuk, i.e. state marketable securities issued based on sharia principles, as proof of investment in sharia state marketable securities, based on the prevailing regulation on state sharia marketable securities.