Tax-Exempt Vehicles for International Organizations in Indonesia

Who This Page Is For

PMK 59/2024 covers two distinct categories of institution. The first is bilateral diplomatic missions: embassies and consulates of foreign governments (Perwakilan Negara Asing, or PNA). The second is international organizations (Badan Internasional, or BI): bodies operating in Indonesia on the basis of an international agreement or recognized international practice.

This page addresses the second category. If your organization falls into this group, whether it is a United Nations agency, a multilateral development bank, an ASEAN-affiliated body, or an international non-governmental organization with formal BI status in Indonesia, the tax exemption facility is available to you. But the pathway is somewhat different from the bilateral embassy route, and those differences are worth understanding before you start the procurement process.

The Three Key Differences from Bilateral Embassies

Which Organizations Qualify?

The regulation refers to international organizations whose recognition rests on an international agreement to which Indonesia is a party, or on established international customary practice. In practice, this covers a wide range of bodies operating in Jakarta, including:

• United Nations system agencies and programs with a country office or representation in Indonesia
• Multilateral development banks and their affiliates
• Regional intergovernmental bodies, including ASEAN-affiliated institutions
• International organizations that have a Host Country Agreement or similar formal arrangement with the Government of Indonesia

If you are uncertain whether your organization qualifies as a Badan Internasional under Indonesian tax law, the Ministry of State Secretariat is the appropriate office to consult when applying for the recommendation letter. Confirmation of BI status typically happens as part of that process.

Qualifying Personnel

The tax exemption is available to foreign-national officials of qualifying international organizations who reside in Indonesia. As with bilateral diplomatic missions, Indonesian citizens (WNI) employed by an international organization are not entitled to this facility, regardless of their seniority or role.

The Unit Cap

Unlike bilateral embassies, international organizations are subject to a cap on the number of vehicles that can benefit from tax exemption. The specific limit is determined based on the number of qualifying foreign-national officials in the organization. For organizations with more than five such officials, the general limit is up to six vehicles, adjusted to reflect actual staffing. Confirm the applicable quota for your organization with the Ministry of State Secretariat during the recommendation letter process.

The Application Process

The sequence of steps is the same as for bilateral embassies, with the substitution of the recommendation source noted above. After obtaining the Ministry of State Secretariat recommendation, the organization applies for the Surat Keterangan Bebas (SKB) electronically through the DJP portal. Complete applications are processed automatically in less than one business day.

The dealer's obligation once the SKB is obtained is identical: the Faktur Pajak must use transaction code 08 and carry the mandatory notation referencing PP 47/2020. For a full walkthrough, see the step-by-step buyer's guide.

Vehicle Options

All Hyundai models on the diplomatic lineup qualify for four-wheeled vehicle exemption. The choice depends on operational need. A UN agency managing field teams and in-country operations may prioritize the capacity of the STARIA. A development bank representative office may lean toward the executive positioning of the Palisade Hybrid. Organizations with carbon neutrality targets may find the locally assembled IONIQ 5 the most aligned option.