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Bill on Stamp Duty 

by Rahayu Hoed, Reagan Roy Teguh

Published: September, 2020

Submission: September, 2020


In the first week of September 2020, the House of Representative passed the Bill on Stamp Duty and now it is waiting for approval by a plenary meeting of the House. The Bill is expected come into effect on 1 January 2021 given the time needed to issue the implementing regulation and for public awareness.

The Bill will only recognize a single stamp duty, Rp10,000 unlike the current law which recognizes two stamp duties (Rp3,000 and Rp6,000). Under the Bill, Stamp duty will be payable on documents drawn up as instruments to evidence civil legal actions and documents for evidentiary purpose before the Court.

With the documents evidencing the transaction of commercial papers will be subject to stamp duty, it is expected that the state income will boast significantly. The government is projecting around Rp 11.3 trillion of state income from the new Law on stamp duty as one of the measures for the national economic recovering caused by the COVID-19 pandemic.

Same as the current Law, the Bill also provides for when the Stamp Duty is payable, which either (i) when the relevant document is signed (for agreements and deeds), perfectly executed (for commercial papers and documents evidencing transaction of commercial papers) or (ii) delivered to the intended party (for written statement, auction documents and documents worth more than Rp 5 Million), or (iii) be used before the Court or (iv) be used in Indonesia (for documents executed in overseas).

Electronic stamp duty is also introduced by the Bill which will have a unique code and specific remarks on them (to be further regulated under a Ministerial Regulation). Other forms of stamp duty may also be determined by the Minister of Finance. The provision on late duty stamp which is subject to administrative sanction (called as nazeglen) is still provided for in the Bill and the sanction will be 100% of the stamp duty due (in other words, the Rp10,000 duty stamp plus the same amount as administrative sanction).

It will be interesting to learn the new implementing regulations on the Stamp Duty before the proposed effective date.



M&T Advisory is a digital publication prepared by the Indonesian law firm, Makarim & Taira S. It informs generally on the topics covered and should not be treated as legal advice or relied upon when making investment or business decisions. Should you have any questions on any matter contained in M&T Advisory, or other comments in general, please contact us via this email.

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