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Indonesia Bond update
Created by
sue.
Last modified on 2010-01-22 20:35:34
Report initially posted 14 May 2009. A number of cruisers have been in contact with noonsite asking what the current situation is in Indonesia with the implementation of the so called “bond” for visiting yachts. Information we have received from contacts in Indonesia varies, however what is clear is that currently, there is a high level of confusion and frustration over the Bond, or Temporary Import Duty into Indonesia. Currently, it all seems to depend on the agent and the port of entry as to how the law is interpreted. Sail Indonesia told noonsite, “The situation regarding the Indonesian Customs import duty on visiting yachts is now becoming clearer; however these regulations may not have been received at all Customs Offices across the Indonesia and as a result some offices may be using outdated regulations. The latest Indonesian Ministry of Finance Regulation PERATURAN MENTERI KEUANGAN NOMOR 140/PMK.04/2007 is very clear and states that many luxury items including yachts are subject to a refundable import duty when they arrive in Indonesia. This regulation is now enforced by the Indonesian Customs officers as you arrive in the country. In accordance with these regulations, on arrival in Indonesia, foreign flagged yachts must pay an import duty to the Bank of Indonesia based on a percentage of the value of the yacht which is refundable when the yacht leaves Indonesia. The method of determining this value is not clear but may rely on your declared value. However at this time the system is not working so well as these regulations are not uniform across the country with some Customs offices enforcing these regulations while others are not. Compounding the problem, the process for paying this duty and obtaining a refund when the yacht leaves the country is not clear. There is no centralised reporting system and some banks are not able to accept the money that this system demands. Officials in some ports occasionally misuse this difficult situation. This information above is based on the official Government Regulations and, after many meetings and research is the best information we have at this time and, as explained above, it may not be followed by all Customs Officials in all ports. There will be as always a number of local variations and ways around these regulations so we take no responsibility for the accuracy of this information for yachts not in the Sail Indonesia - Sail Bunaken events." Picking a port of entry therefore is difficult as there is no uniformity or predictability in the interpretations and it ALL depends on the Customs Officials that you meet (including any "charges" they may demand from a yacht skipper). Alvin Edmond of TC Marine Services in Bali, wrote, “Once again rumours are rife about having to pay a bond on entering Indonesia . Unfortunately some ambitious officials and marine operators have tried to misinterpret the law to extort money from cruising yachts. After several meetings with the “Gahawisri” (Indonesian Marine Tourist Association) and the Government, there are steps being taken to quash this rumour once and for all. At the moment it is important to pick your point of entry carefully.” Rachel Robertson, an agent for CAITS and Sponsor letters in Indonesia, told noonsite "Attempting to seek clarification on what the Bond entails has been a continuing process, with the exact interpretation of how these regulations are to be implemented varying. I have repeatedly attempted to contact officials concerning this matter, to, as yet, no avail. However, I am an active sailor in Indonesia, and remain focused on seeking answers for myself, my clients and the cruising fraternity." Bali, once considered a straightforward port of entry, are currently suffering as the Customs office has without warning, started to impose temporary import charges for foreign yachts. Bali Marina however are trying to find some alternatives and told Noonsite the following; "At this moment we offer alternatives for foreign yacht to enter Indonesia, especially coming from Australia and PNG: 1) They can check-in at Kupang and pay US$ 250 for port clearance in and out with no temporary import. Then yachts are able to cruise on western island and check out of Kumai or Batam. 2) They may sail straight to Bali and do check in, pay US$ 200 for port clearance. They are only allowed to stay between 14 to 20-days. After that they must check out of Indonesia from Bali. 3) They can check-in at Ambon or Tual, with no temporary import, but they must avoid entering Kupang port, Maumere port and Lembar port." Further details from Bali International Marina. Past reports from cruisers indicate that the bond is being enforced in Kupang and Maumere on Flores. The Rally Sail Indonesia have said, "We are mercifully not affected by this mess as we are in partnership with Sail Bunaken. The Indonesian Government wish to make Sail Bunaken a success for 2009 and in order to look good they want to attract as many participants as possible to Sail Indonesia and Sail Bunaken. Entry will be free of charge for 2009 and we are receiving high level support to ensure that this Customs mess does not affect any of our yachts". The good news is that the situation may well improve. Latest reports following a meeting in Jakarta held by the Gahawisri state that they wish to propose to the government that they would stand as Security to ensure that all visiting yachts leave Indonesia by the expiration of their CAIT. This would mean that all visiting yachts would have to become temporary members of the Gahawisri and fly a Gahawisri bflag, which would indicate that they are under the protection of the Gahawisri and should not be asked for a bond . Bali Marina confirm, “We are working now to lobby the government and hopefully this will make it easier for foreign yacht to enter Indonesia without having to worry about paying big amounts for a custom bond”. "Of course the catch is that there will be a temporary membership fee", reports Alvin Edmond of TC Marine Services Bali . "The amount is still to be decided, if it gets Government approval." All sources seem to think all will be sorted out later this year and Customs offices in Indonesia will begin to follow uniform Customs regulations, however if you are wanting to cruise Indonesia we recommend you find an agent who you sense knows what they are talking about and stick with them. Keep an eye on noonsite for updates on this subject. Contact TC Marine Services at officeat Cruisers response to this report received 23 May, 2009. I arrived in Bali three weeks ago from Malaysia and was told on arrival that the custom's bond was now enforced . Bali Marina gave me the options described in this article but I choose to try to clear in on my own: Paying 200usd and staying only 14 days was not an option for me . It took a bit of time but I met really nice officials and was finally cleared in at NO CHARGE. The customs officer i met assured me I could stay for the length of my cruising permit but advised me to clear out of Bali . Yes , there's a lot of confusion here ... but a lot of yachts are still able to visit the country without paying the Bond. A 110ft sailboat arrived a few days ago and apparently they cleared in Kupang without any trouble. My advice is to do the process on your own, with a big smile on your face!
Cheers Comment received 15 June, 2009. Until the Bond has been clarified, and until it has become a National Law, then I advise my clients not to PAY this Bond, and to remind officials that the CAIT is already payed and this is their paper work for themselves and their boat to be in Indonesian Waters. You do not need or want to temporarily import your boat and your CAIT is proof that you are only a tourist. If Bali is indeed a port that enforces the bond, while other ports don't, then I recommend my clients not to use Bali as a port for ANY clearence procedures. In Jakarta, there are still discussions as to the legalaties of this bond, and in a few months we are hopeful of official clarification. Comment received From Vic Martin on 3rd January 2010. We entered Indonesia at Maumere after leaving Dili, Timor Leste in late September 2009. There was no mention of a bond. We found everyone extraordinarily helpful and welcoming. Customs, in particular, went to great lengths to help us with our documentation. Comment received 21 January, 2010. > This report is in itself indicative of the state of play with numerous contradictions and confusions. Sadly, all I can offer is our experience which may only contradict some things and agree with others! At Asia Pacific Superyachts Indonesia, we have our own method of dealing with this on behalf of our clients which has proven successful. There's no universal magic formula however. We treat each client on a case-by-case basis and make individual strategies which best suit the boat, based on current conditions, research and information. What I will say in general terms is that the basic PIB law (Bond) is, in itself, sound legislation. The application is, however, somewhat haphazard. Uniformity is hard to achieve in a country consisting of 15,000 islands. Most customs officials have never left their own island. These are the challenges which face us all. Instead of wasting time wading through the legislation and trying to get "clarity", our approach is to accept the situation as it is on any given day and use our experience to work with it rather than against it. Finally, I would like to point out that, in our experience, entrapment is the biggest problem. Most customs officials are not brash enough to demand big sums of money. Often local "agents" are the ones who light the fire themselves and then turn up with the expensive bucket of water to put it out with. There are side deals everywhere and the "best interests of the client" are not really a concept. Editor's Note: Asia Pacific Superyachts Indonesia deal with Sail and Motor yachts, generally in 20m+ range. |
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