Akmalal Hamdhi, Jakarta – The government recently said that any assistance sent by Indonesian diaspora to the Sumatra flood victims would be tax-free as long as they follow the right procedures.

Finance Minister Purbaya Yudhi Sadewa denied social media reports that the customs directorate general were collecting taxes on donated goods. Sumatra is currently grappling with the aftermath of a catastrophic flood that struck parts of the island in late November. Indonesians abroad have sent some donation, although the government has insisted on rejecting international aid.

"I know people on social media are saying that disaster relief goods are taxed. There is no such thing," Purbaya told a press conference in Jakarta on Thursday.

Even so, donors must still follow the administrative procedures. Any goods entering Indonesia are subject to import duties. To gain the tax exemptions, donors need to report to the National Disaster Management Agency (BNPB) and its regional counterpart BPBD for a recommendation letter. This document is then submitted to the customs office, who will determine whether the goods are eligible for the tax-free treatment.

"As long as they go through the procedures and report to us, the [assistance] will go through," Purbaya said.

He went on to say that such requirements are necessary to prevent illegal goods from entering the country under the guise of humanitarian aid.

The government has rolled out Rp 268 billion ($16 million) to the disaster-affected areas, namely Aceh, North Sumatra, and West Sumatra. Each provincial government had received Rp 20 billion. The 52 city/regency-level governments got Rp 4 billion each.

BNPB data showed that the disaster had claimed 1,068 lives, and 190 people remain missing as of Friday morning. As many as 147,236 houses sustained damages.

Source: https://jakartaglobe.id/business/sumatra-floods-govt-says-no-tax-on-aid-from-indonesian-diaspor