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New rules permit foreign nationals to join government auctions without tax ID

Jakarta Globe - January 26, 2024

Monique Handa Shafira, Jakarta – The Finance Ministry's Directorate General of State Assets (DJKN) has introduced new rules allowing foreign nationals (WNAs) to take part in government auctions, even if they don't have a Taxpayer Identification Number (NPWP).

Diki Zenal Abidin, Head of the Auction at DJKN, said that foreign nationals can join auctions but need to show identification from their home country. This is outlined in the Finance Minister Regulation (PMK) No. 122 of 2023 concerning Auction Implementation Guidelines.

"Before, having an NPWP was a requirement for auctions. Now, we've relaxed the rules for foreign nationals without an NPWP, so it's permitted. For those foreign nationals without an NPWP, they can use identification from their home country," said Diki in Jakarta on Thursday.

"However, it depends on the auction item. If the item cannot be owned by foreign nationals, they won't be approved as participants. For instance, land with ownership rights," he added.

If foreign nationals try to auction restricted items, the system will automatically reject them.

"For example, privately owned land. According to the PMK regulation, it can only be owned by Indonesian citizens with single citizenship and certain entities. If a foreign national still participates, it won't be approved because our system is unified. So, there are limitations according to the norms regulating the object," he explained.

The Directorate General of State Assets (DJKN) at the Ministry of Finance reported that the state auction transactions reached Rp 44.3 trillion ($2.8 billion) throughout 2023, surpassing the target of Rp 33 trillion. This year's auction achievement is higher compared to previous years.

DJKN documented auction transactions as follows: Rp 18.42 trillion in 2018, Rp 27.02 trillion in 2019, Rp 26.86 trillion in 2020, Rp 35.39 trillion in 2021, Rp 35.23 trillion in 2022, and Rp 44.34 trillion in 2023.

Source: https://jakartaglobe.id/business/new-rules-permit-foreign-nationals-to-join-government-auctions-without-tax-i