Regulation Update
Government Exempts Ethyl Alcohol Excise for Sanitizers

Thursday, 19 March 2020

Government Exempts Ethyl Alcohol Excise for Sanitizers

JAKARTA. The government frees the ethyl alcohol excise to be used as raw or auxiliary material for the manufacture of hand sanitizers, surface sanitizers and antiseptics. This is an attempt by the government to reduce the spread of Corona Virus Disease 2019 (Covid-19).

Currently, the number of sanitizer and antiseptic requests has increased, in line with the government's appeal to the public to keep maintaining cleanliness.

This policy was stated in Circular Letter (Surat Edaran/SE) of the Director General of Customs and Excise (Direktur Jenderal Bea Cukai) number SE-04 / BC / 2020, which issued on March 17, 2020. However, the procedure for exemption of excise on Ethyl Alcohol is now regulated in the Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) number 172 / PMK.04 / 2019.

Under this rule, the excise exemption facility for ethyl alcohol will be provided if it is used for only social purposes, such as hospital needs and natural disasters.

According to the Directorate General of Customs and Excise as stated in his written statement, this excise exemption was given to companies or institutions assigned by the government in relation to the Covid-19 countermeasure program.

Meanwhile, to obtain this facility the relevant institution must submit an application to the Minister of Finance through the Director General of Customs and Excise. 

The request must be accompanied by a statement stating that the procurement of ethyl alcohol is to cope with Covid-19 and order documents from government agencies, such as hospitals or institutions that handle disasters, which explain the amount of ethyl alcohol requested and the intended use. (ASP)


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