Jakarta, 25 February 2025 – TaxPrime successfully held a seminar entitled “Enhancing Business and Investment Sustainability: Effective Transfer Pricing Dispute Prevention, Resolution, and Strategic Optimisation of Fiscal Facilities” on 24 February 2025 at Financial Hall, Graha CIMB Niaga, Jakarta. The seminar featured TaxPrime Advisors and representatives of key stakeholders, including the Directorate General of Taxes (DJP), the Directorate General of Customs and Excise (DJBC), and the Ministry of Investment and Downstream/BKPM.

The seminar, moderated by Bayu Rahmat Rahayu, Transfer Pricing, International Tax, and Transactions Advisor at TaxPrime, who specializes in the extractive industry, was appreciated as a collaborative forum for the government, TaxPrime, and the business community to share insights, experiences, and best practices related to transfer pricing dispute prevention and resolution. The main discussions included the Mutual Agreement Procedure (MAP) and Advance Pricing Agreement (APA) mechanisms and strategies for optimizing fiscal incentives to support sustainable business growth.

Emanuel Dewo Adi Winedhar, Transfer Pricing, International Tax, and Transactions Managing Partner at TaxPrime, highlights the importance of effective dispute resolution strategies through Mutual Agreement Procedure (MAP) and Advance Pricing Agreement (APA). Moreover, the sustainability code GRI 207 now includes transfer pricing, which underlines the importance of policy transparency and engagement with tax authorities.

In recent years, transfer pricing dispute cases have been rising and are time-consuming and costly. Senior MAP/APA and Transfer Pricing Analyst at the Directorate of International Taxation, Dinar Ayu Adeline, explained how MAP and APA are effective strategies in mitigating transfer pricing disputes. Dinar underlined that MAP is not about winning and losing but how to eliminate double taxation. She also added how APA is a strategic investment for taxpayers in obtaining tax certainty on the fairness of affiliated transactions and, therefore, can mitigate the risk of prolonged transfer pricing disputes.

Furthermore, regarding taxpayers’ concerns regarding data leakage in the internal DJP in the context of audits, Pramuji Handra Jadi, Junior MAP/APA and Transfer Pricing Analyst at the Directorate of International Taxation asserted that in the APA and MAP process, the confidentiality of taxpayers’ data is the primary concern. According to him, the data submitted by the taxpayers in the APA and MAP submissions will remain confidential by the confidentiality rule, where all documents cannot be used for the objection examination process, so the taxpayers do not need to worry. 

This is supported by Bobby Savero, Transfer Pricing, International Tax, and Transactions Advisor at TaxPrime, who explained some of the main advantages of MAP and APA, such as handling by tax authority employees who are generally experienced and have good knowledge in the field of international tax, confidentiality guarantee in the discussion process, and the opportunity for a win-win solution. In addition, especially in transfer pricing cases, this mechanism provides opportunities for corresponding adjustments that can align the tax treatment in Indonesia with the counterpart jurisdiction, therefore minimizing double taxation.

Along with the dynamics of global taxation, Indonesia officially applies the Global Minimum Tax (GMT), in line with the GloBE Rule in Pillar Two of the OECD/G20, which impacts fiscal facilities. Padmoyo Tri Wikanto, Director of Customs Facilities, Directorate General of Customs and Excise, explained that there are many kinds of fiscal incentives and facilitated areas that can be given to taxpayers to assist their business activities, depending on the taxpayer’s industry.

This was in line with the presentation from Robert Leonard Marbun, Expert Staff for Institutional Relations, Ministry of Investment and Downstream Industry, regarding the government’s efforts to reduce the Incremental Capital Output Ratio (ICOR) through the provision of fiscal and non-fiscal incentives, along with digitalization support through OSS to simplify reporting and reduce bureaucratic burden.

Muhamad Fajar Putranto, Managing Director TaxPrime, also shared tips for taxpayers to manage fiscal facilities. According to him, facilities are easy to obtain if taxpayers comply with the protocols set by the government so that they can form the right strategy to maintain business sustainability. Fajar underlined that facilities are not only something given by the government but also contain responsibilities.

This seminar confirmed the role of MAP and APA in managing transfer pricing disputes and optimizing fiscal incentives. The collaboration of the business world, government, and academia is expected to strengthen a transparent tax ecosystem. With the proper regulation and optimal utilization of fiscal facilities, taxpayers can reduce the risk of disputes, ensure legal certainty, and support sustainable economic growth.

Robert Leonard Marbun
Expert Staff for Institutional Relations, Ministry of Investment and Downstream Industry (BKPM)

Muhamad Fajar Putranto
Managing Director

Emanuel Dewo Adi Winedhar
Managing Partner
Transfer Pricing Compliance & International Tax Division

Bayu Rahmat Rahayu
Senior Manager
Transfer Pricing Compliance & International Tax

Bobby Savero
Senior Manager
Transfer Pricing Compliance & International Tax

DJP
International Tax Team