On 22 February 2022, the Minister of Finance (“MoF”) issued a new regulation No. 5/PMK.010/2022 regarding the Luxury Sales Tax (“LST”) on the Delivery of Luxurious Taxable Goods in the form of certain Motor Vehicles which is borne by the Government for Fiscal Year 2022 (“PMK-5/2022”).

The major issues set in force in this PMK-5/2022 are as follows:

1. The rate of LST borne by the Government:
   

   No.	LST rate	Applied for Tax Period
   1.	100%	Jan-Mar 2022
   2.	66 2/3%	Apr-Jun 2022
   3.	33 1/3%	Jul-Sep 2022

2. Classifications of the vehicles:
   1. Motor vehicles included in the energy-efficient and affordable 4-wheeled motor vehicle program, with
      • spark ignition engine with fuel consumption of at least 20 (twenty) kilometers per liter or CO2 emission level up to 120 (one hundred twenty) grams per kilometer, for cylinder capacity of 1,200 (one thousand two hundred) cc;
      • Compression ignition engine in the form of diesel or semi diesel with a fuel consumption of at least 21.8 (twenty-one point eight) kilometers per liter or CO2 emission levels up to 120 (one hundred and twenty) grams per kilometer, for cylinder capacity up to 1,500 (one thousand five hundred) cc.
   2. Motor vehicles for transport of persons for the carriage of less than 10 (ten) persons including the driver for all cylinder capacity up to 1,500 (fifteen hundred) cc with:
      • Spark ignition engine with fuel consumption of more than 15.5 (fifteen point five) kilometers per liter or CO2 emission levels less than 150 (one hundred and fifty) grams per kilometer or
      • compression ignition engine in the form of diesel or semi diesel with fuel consumption of more than 17.5 (seventeen point five) kilometers per liter or CO2 emission level less than 150 (one hundred and fifty) grams per kilometer.
3. Requirements that must be met:
   1. amount of local content, which includes the fulfillment of the amount of use of components derived from domestic production utilized in certain motor vehicle production activities, of at least 80% (eighty percent), and
   2. on the road price:
      • at most Rp 200,000,000 (two hundred million rupiah) for motor vehicles included in the energy-efficient and affordable 4-wheeled motor vehicle program or
      • at least Rp 200,000,000 (two hundred million rupiah) and at most Rp 250,000,000 (two hundred fifty million rupiah) for motor vehicles for transporting people with transportation of less than 10 (ten) people including the driver for all cylinder capacity up to 1,500 (one thousand five hundred) cc.
4. Other matters
   Luxury goods sales tax owed for the delivery of certain motor vehicles borne by the Government, namely motor vehicles for the transportation of fewer than 10 (ten) people including the driver for all cylinder content capacity up to 1,500 (one thousand five hundred) cc and meeting the requirements is given at 50% (fifty percent) of the Luxury goods sales tax owed for Tax Period January 2022 until Tax Period March 2022.

PMK-5/2022 became effective on 2 February 2022.