Making Dispute Resolution Mechanisms More Effective – Consolidated Information on Mutual Agreement Procedures 2023

Indonesia

Recent developments relating to MAP in Indonesia prior to 15 August 2023

Developments relating to MAP in the tax treaty network

• Modified by MLI, entry into effect in 2022 of the tax treaty with Hungary

• Modified by MLI, entry into effect in 2022 of the tax treaty with Croatia

• Modified by MLI, entry into effect in 2022 of the tax treaty with Malaysia

• Modified by MLI, entry into effect in 2022 of the tax treaty with Egypt

• Modified by MLI, entry into effect in 2022 of the tax treaty with Pakistan

• Modified by MLI, entry into effect in 2023 of the tax treaty with Seychelles

• Modified by MLI, entry into effect in 2023 of the tax treaty with Spain

• Modified by MLI, entry into effect in 2023 of the tax treaty with Thailand

• Modified by MLI, entry into effect in 2023 of the tax treaty with China (People’s Republic of)

Other developments relating to MAP

• No developments were reported

Latest Action 14 Peer Review report

18 October 2021 - https://doi.org/10.1787/8095f743-en

Tax treaty network of Indonesia

• 72 treaties, applicable to 72 jurisdictions (covering all treaties signed, although not necessarily in force)

• status of MLI: in force.

Table 1. State of play of Indonesia's tax treaty network

Treaties in line with the Action 14 Minimum Standard following MLI impact	Treaties where actions are ongoing to make them in line with the Action 14 Minimum Standard	Following impact/actions, remaining treaties that are not in line with Action 14 Minimum Standard
39	31	2

Source: OECD

Indonesia's MAP programme

Organisation of competent authority function

• 38 persons:

  • One Director, one Deputy Director and four Head of Divisions

  • 32 persons working on MAP cases (all of which work on other tasks as well)

• contact persons for MAP requests:

  • Director of International Taxation, Directorate General of Taxes

    • Jl. Jenderal Gatot Subroto Kav.40-42 Jakarta 12190

    • Phone [phone], Fax [phone] email: [e-mail].

  • Other than that, Tax Resident of Indonesia may submit the MAP request to the Tax Office in which the Taxpayer is registered.

Figure 1. Competent Authority Organisational Structure

Source: OECD

Table 2. Guidance on the MAP process

MAP guidance	Mutual Agreement Procedure (MAP)	https://www.pajak.go.id/id/apa-map#MAP (Section “MAP Application” to be referred to for form and content of a MAP request, including information requirements)
MAP profile	23 June 2021	https://www.oecd.org/tax/dispute/indonesia-dispute-resolution-profile.pdf

Overview of Indonesia's MAP Statistics for 2022

Please refer to https://www.oecd.org/tax/dispute/map-statistics-indonesia.pdf for details with respect to Indonesia's MAP Statistics.

Figure 2. Cases closed in 2022

Source: OECD

Figure 3. Evolution of Indonesia's MAP caseload (2016-22)

Source: OECD

Table 3. Overview of Indonesia’s MAP caseload for 2022

Inventory for year 2022	Opening Inventory 1/1/2022	Cases started	Cases Closed	End Inventory 31/12/2022
Attribution/allocation cases	26	9	6	29
Other cases	17	4	4	17
Total	43	13	10	46

Source: OECD

Table 4. Indonesia’s average time to resolve MAP cases in 2022

Cases resolved in year 2022	Pre-2016 cases		Post-2015 cases		All
	Number of cases	Average time	Number of cases	Average time	Number of cases	Average time
				Start to End
Attribution / Allocation cases	2	92.94	4	22.27	6	45.83
Other cases	1	92.94	3	26.92	4	43.43
All cases	3	92.94	7	24.26	10	44.87

Source: OECD