Reconstruction of Regulation of Free Import Duty of General Goods Vehicle Based on Justice

DOI

10.2991/978-2-38476-074-9_8How to use a DOI?

Keywords

Investment; General Goods Transportation Company; Free Import Duty Facility of General Goods Vehicle; Justice

Abstract

In accordance with its business nature, the general goods transportation company must continuously renew its vehicle in order to survive. The vehicle renewal aforesaid may be performed, among others based on its business strategy, by importing vehicle directly from the manufacturing country. The company is entitled to obtain various facilities in respect of investment according to the prevailing regulations, one of which is in the form of free import duty of vehicle. The application to acquire such investment facility shall be submitted to the Head of Indonesia Investment Coordinating Board (BKPM), and for the said application the Head of BKPM on behalf of the Minister of Finance shall give approval or rejection. Prior to the enactment of Omnibus Law, there was a vacuum of license for the general goods transportation business. Business license as one of the requirements to obtain free import duty facility of vehicle, may not be obtained by the general goods transportation company because the existence of such business license was not regulated in any law relevant to the transportation sector. In this situation, BKPM had performed special discretion, including to perform coordination meeting with relevant ministries, so the general goods transportation company may get the investment facility without having any business license. Then, Omnibus Law and its implementing regulation stipulate that general goods transportation business must have business license which shall be applied through Online Single Submission-Risk Based Approach (OSS-RBA). This business license is also set as one of requirements to obtain free import duty of vehicle. The requirements to obtain business license via OSS-RBA are considered too technical and difficult to be fully achieved by transportation company, as proven that a few transportation companies have succeeded to obtain this business license. This is a sociological juridical research that will study the primary and secondary legal document supported by interview and experience of the author. The author will assess problems regarding the obtainment of free import duty facility of vehicle and evaluate on how far the prevailing regulation hinder the achievement of investment right of transportation company. As a type of business that is very important for general society, especially due to its function to transport many kind of daily needs, the general goods transportation business certainly shall receive justice and easiness to perform its business strategy.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Haryo Kusumastito
PY  - 2023
DA  - 2023/06/27
TI  - Reconstruction of Regulation of Free Import Duty of General Goods Vehicle Based on Justice
BT  - Proceedings of the 5th Legal International Conference and Studies (LICS 2022)
PB  - Atlantis Press
SP  - 64
EP  - 73
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-074-9_8
DO  - 10.2991/978-2-38476-074-9_8
ID  - Kusumastito2023
ER  -