ProdukHukum Perdagangan GR7.

GOVERNMENT REGULATION
NO. 7/2002 DATED MARCH 23, 2002
ON
SECOND AMENDMENT TO GOVERNMENT REGULATION
NO. 145/2000 ON GOODS OF THE LUXURY CATEGORY SUBJECT
TO SALES TAX ON LUXURY GOODS

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering :
that in the framework of legal certainty and justice in the imposition of sales tax for
luxury goods on taxable goods classified as luxury goods, it is necessary to issue a government
regulation regarding second amendment to the government regulation no. 145/2000 on goods of
the luxury category subject to sales tax on luxury goods.
In view of :
1. Article 5 paragraph (2) of the Constitution of 1945, which has been amended by the third
amendment to the 1945 Constitution;
2. Law No. 8/1983 concerning Value Added Tax on Goods and Services and Sales Tax on
Luxury Goods (Statute Book of 1983 No. 51, Supplement to Statute Book No. 3264),
which has frequently and finally been amended by Law No. 18/2000 (Statute Book of
2000 No. 128, Supplement to Statute Book No. 3986);

3. Government Regulation No. 145/2000 on Goods of the Luxury Category Subject to Sales
Tax on Luxury Goods (Statute Book of 2000 No. 261, Supplement to Statute Book No.
4063), which has been amended by Government Regulation No. 60/2001 (Statute Book
of 2001 No. 106, Supplement to Statute Book No. 4129);
DECIDES :
To stipulate :
THE GOVERNMENT REGULATION ON SECOND AMENDMENT TO GOVERNMENT
REGULATION NO. 145/2000 ON GOODS OF THE LUXURY CATEGORY SUBJECT TO
SALES TAX ON LUXURY GOODS.
Article I
Several provisions in Government Regulation No. 145/2000 on Goods of the Luxury
Category Subject to Sales Tax on Luxury Goods, which has been amended by Government
Regulation No. 60/2001 are amended as follows :
1. The provisions of Article 1 paragraphs (1), (2), (4) and (5) are amended; therefore the
entire Article 1 reads as follows :

"Article 1
1. Goods classified as taxable luxury goods, other than motor vehicles, which are subject to
ten percent (10%) sales tax for luxury goods, include :
a. Goods classified as bottled/packaged preserved/fermented milk fat or milk

containing or not of sugar or other sweetener, aromatic, flavour, fruits, seeds,
cocoa, yogurt, gourd, cheese, butter, or fat or oil derived from milk;
b. Goods classified as bottled/packaged fruit and vegetable water, which has not
been fermented and does not contain alcohol, with or without sugar or sweetener,
with or without flavour;
c. Goods classified as bottled/packaged as drinks, which does not contain alcohol,
with or without sugar or sweetener, soda water;
d. Goods classified as bottled/packaged beauty products used for skin care, hand,
feet, and hair, and other beauty equipment;
e. Goods classified as household equipment, cooling equipment, heating equipment,
and television broadcasting receiver;
f. Goods classified as sports equipment and accessories;
g. Goods classified as toys.
1. Goods classified as taxable luxury goods, other than motor vehicles, which are subject to
twenty percent (20%) sales tax for luxury goods, include :
a. Goods classified as household equipment, cooling equipment, heating equipment,
other than those set forth in paragraph (1);
b. Goods classified as luxury occupational places, such as luxury houses,
apartments, condominiums, town houses, and the like;
c. Goods classified as sanitary goods and the accessories, except those made of

plastic, zinc, or cement;
d. Goods classified as photographic equipment, cinematographic equipment, optical
equipment, voice or picture recording equipment, voice or picture reproductions
equipment, voice receivers and senders, television broadcasting receivers other
than those mentioned in paragraph (1);
e. Goods classified as air temperature regulators, washing machine, drying machine,
electromagnetic equipment, shaving equipment, hair cutting equipment, and
musical instruments;
f. Goods classified as perfumery;
g. Goods classified as carpets other than those made of coir, silk, wool, or furs.
1. Goods classified as taxable luxury goods, other than motor vehicles, which are subject to
thirty percent (30%) sales tax for luxury goods, include :
a. Goods classified as vessels or other water vehicles, sampans, and canoes, except
those used by the state or public transportation vehicles;

b. Goods classified as sports equipment and accessories other than those mentioned
in paragraph (1);
c. Goods classified as television broadcasting receivers other than those mentioned
in paragraphs (1) and (2).
1. Goods classified as taxable luxury goods, other than motor vehicles, which are subject to

forty percent (40%) sales tax for luxury goods, include :
a. Goods classified as alcoholic drinks;
b. Goods, which part or all are made of leather or synthetic leather;
c. Goods classified as carpets made of silk or wool;
d. Goods classified as glasses made of crystal and leads, such as tables, kitchen
equipment, beauty equipment, office equipment, interior decorations, or the like;
e. Goods, which part or all are made of gold or gold coated metal, or gold and metal
mix;
f. Goods classified as vessels or other water vehicles other than those mentioned in
paragraph (3), except those used by the state or public transportation vehicles;
g. Goods classified as air balloons and piloted air balloons; other non-propelled air
transportation vehicles;
h. Goods classified as fire weapon missiles and other fire weapons, except those
used by the state;
i.

Goods classified as equipment for toys used inside rooms and on the tables played
by children and adults;

j. Goods classified as television broadcasting receivers other than those mentioned

in paragraphs (1), (2), and (3);
k. Goods classified as footwear;
l.

Goods classified as dining equipment, kitchen equipment, other household
equipment, and beauty equipment;

m. Goods classified as household and office equipment;
n. Goods classified as goods made of porcelain, land, Chinese clay or ceramic;
o. Goods, which part or all made of stones (other than road and roadside stones).
1. Goods classified as taxable luxury goods, other than motor vehicles, which are subject to
fifty percent (50%) sales tax for luxury goods, include :
a. Goods classified as carpets made of furs;
b. Goods classified as airplanes other than those mentioned in paragraph (4), except
the ones used by the state or commercial airplanes;
c. Goods classified as sports equipment and accessories other than those mentioned
in paragraphs (1) and (2);

d. Goods classified as fire weapons and other fire weapons, except those used by the
state;

e. Goods classified as television broadcasting receivers other than those mentioned
in paragraphs (1), (2), (3), and (4).
1. Goods classified as taxable luxury goods, other than motor vehicles, which are subject to
seventy-five percent (75%) sales tax for luxury goods, include :
a. Goods classified as alcoholic drinks other than those mentioned in paragraph (4);
b. Goods, which part or all are made of gold and/or pearls or gold & pearl mix;
c. Goods classified as luxury tourist vessels, except those used by the state, or public
transportation vehicles."
1. Article 1A is inserted in between Article 1 and Article 2.
The Article 1A reads as follows :
"Article 1A
1. Taxable luxury goods other than motor vehicles are exempted from the imposition of
sales tax for luxury goods if, five (5) years from the date of import or acquisition, they
are assigned or used for purposes other than what has been planned. And the sales tax for
luxury goods, which previously has not become outstanding on the date of import or
acquisition, shall become outstanding and payable one (1) month from the date on which
the goods are assigned or used for purposes other than what has been planned.
2. If, within the one (1) month period as set forth in paragraph (1), the outstanding sales tax
for luxury goods become underpaid, the director general of tax will issue a Certificate of
Underpayment of Tax (SKPKB) and impose sanctions in accordance with applicable

regulations."
1. Article 2 paragraphs (3) and (4) are amended; therefore Article 2 reads as follows :
"Article 2
1. Goods classified as taxable luxury goods in the form of motor vehicles, which are subject
to ten percent (10%) sales tax for luxury goods, include :
a. Motor vehicles of any content, which are used for transporting ten (10) or more
persons, including the driver. The vehicles are equipped with spark ignition
engine or diesel or semi-diesel internal combustion engine.
b. More than 1500 CC motor vehicles used for transporting less than ten (10)
persons, including the driver, which are other than sedans or station wagons. The
vehicles are equipped with spark ignition engine or diesel or semi-diesel internal
combustion engine using a 4x2 propeller axle.
1. Goods classified as taxable luxury goods in the form of motor vehicles other than sedans
or station wagons, which are subject to twenty percent (20%) sales tax for luxury goods
are motor vehicles used for transporting more than ten (10) persons, including the driver
and equipped with spark ignition engine and/or diesel/semi-diesel internal combustion
engine using a 4x2 propeller axle. The vehicles are having a content of more than 1500
CC to 2500 CC.

2. Goods classified as taxable luxury goods in the form of motor vehicles other than sedans

or station wagons, which are subject to thirty percent (30%) sales tax for luxury goods,
are motor vehicles used for transporting more than ten (10) persons, including the driver,
constitute :
a. Sedans or station wagons that are equipped with spark ignition engine or
diesel/semi diesel internal combustion engine and have up to 1500 CC content.
b. Motor vehicles other than sedans or station wagons, which are equipped with
spark ignition engine or diesel/semi-diesel internal combustion engine and two (2)
4x4 propeller axles and have up to 1500 CC content.
1. Goods classified as taxable luxury goods in the form of motor vehicles other than sedans
or station wagons, which are subject to forty percent (40%) sales tax for luxury goods,
are motor vehicles used for transporting less than ten (10) persons, including the driver,
constitute :
a. Sedans or station wagons which are equipped with spark ignition engine and have
more than 2500 CC to 3000 CC content.
b. Motor vehicles equipped with spark ignition engine, which include sedans or
station wagons and other vehicles equipped with two (2) 4x4 propeller axles and
have more than 1500 CC to 3000 CC content.
c. Motor vehicles equipped with internal combustion engine and have more than
1500 CC to 2500 CC content.
1. Goods classified as taxable luxury goods, which are subject to fifty percent (50%) sales

tax for luxury goods, are special vehicles used on the golf course.
2. Goods classified as taxable luxury goods, which are motor vehicles subject to sixty
percent (60%) sales tax for luxury goods, include :
a. Two-wheel-drive motor vehicles having more than 250 CC to 500 CC content;
b. Special vehicles used on the snow, beach, mountain, and any vehicles of the like.
1. Goods classified as taxable luxury goods, which are motor vehicles subject to seventyfive percent (75%) sales tax for luxury goods, include :
a. Motor vehicles used for transporting less than ten (10) persons, including the
driver and are equipped with spark ignition engine, which motor vehicles include
sedans or station wagons and other vehicles having two (2) 4x2 propeller axles
and/or 4x4 propeller axles and have more than 3000 CC content;
b. Motor vehicles used for transporting less than ten (10) persons, including the
driver and equipped with diesel or semi-diesel internal combustion engine. The
motor vehicles include sedans or station wagons and other vehicles having two (2)
4x2 propelling axles and/or 4x4 propelling axles and have more than 2500 CC
content;
c. Two-wheel-drive motor vehicles with more than 500 CC content;
d. Caravan-type trailers, semi-trailers used for houses or tents."
Article II

This regulation comes into full force and effect as of May 1st , 2002.


For public cognizance, this government regulation shall be promulgated by placing it in the
Statute Book of the Republic of Indonesia.

Stipulated in Jakarta
On March 23, 2002
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd.
MEGAWATI SOEKARNOPUTRI

Promulgated in Jakarta
On March 23, 2002
THE SECRETARY OF STATE OF THE REPUBLIC OF INDONESIA
sgd.
BAMBANG KESOWO

STATUTE BOOK OF THE REPUBLIC OF INDONESIA OF 2002 NO. 12

ELUCIDATION OF
GOVERNMENT REGULATION NO. 7/2002

ON
SECOND AMENDMENT TO GOVERNMENT REGULATION
NO. 145/2000 ON GOODS OF THE LUXURY CATEGORY SUBJECT
TO SALES TAX ON LUXURY GOODS

GENERAL
Pursuant to government regulation No. 145/2000 on Goods of the Luxury Category
Subject to Sales Tax on Luxury Goods, which has been amended by Government Regulation No.
60/2001, the said goods (motor vehicles or other goods) are subject to sales tax for luxury goods.
When the regulation was put in practice, it had not met the target. This is proven by the number
of public inputs and proposals with regard to the imposition of sales tax for luxury goods (motor

vehicles or other goods). Therefore in order to achieve the objective and provide more legal
certainty and sense of justice to the public, adjustment with the regulations on the imposition of
sales tax for luxury goods on taxable luxury goods needs to be made. The adjustments include,
amongst others :
1. Deletion of goods classified as taxable luxury goods other than motor vehicles, which are
deemed inaccurate to be classified as luxury goods.
2. Adjustment of goods classified as taxable luxury goods other than motor vehicles
according to the amount of tariffs.
3. Imposition of sanctions on importers or buyers of taxable luxury goods other than motor
vehicles, which are exempted from sales tax for luxury goods having assigned or used not
according to what has been planned.
4. Adjustment of types of motor vehicles classified based on their content and the amount of
tariff.
ARTICLE BY ARTICLE
Article I
Paragraph 1
Article 1
Sufficiently clear
Paragraph 2
Article 1A
In order to prevent any violations against exemption from the imposition of sales tax on
luxury goods, this regulation rules about the sanctions imposed in importers and buyers of the
said goods, which are exempted from sales tax for luxury goods five (5) years from the date of
import and/or acquisition and have actually been assigned or used not in accordance to what has
been planned.
Paragraph 3
Article 2
Sufficiently clear
Article II
Sufficiently clear

SUPPLEMENT TO STATUTE BOOK OF THE REPUBLIC OF INDONESIA NO. 4176