Meterai

In Indonesia, legally binding documents that include a monetary transaction should have stamp duty (meterai) affixed.

Currently, and according to article 1 of Government Regulation on Changes of Stamp Duty Tariff and Amount of Nominal Price (No. 24 of 2000), a IDR6,000 (around USD0.45) meterai stamp can be applied to the following documents:

• contracts;
• notarial deeds;
• land title deeds;
• copies of these documents; and
• other documents which include a monetary transaction valued IDR1 million (around USD75) or more:

and according to article 2 of the same regulation, a IDR3,000 (around USD0.22) meterai stamp can be applied to the following documents:

• bank cheques (regardless of value); and
• any other documents that include a monetary transaction of IDR250,000 (around USD19) and up to IDR 1 million (around USD75).

If stamp duty is not affixed, the documents are still treated as valid legal documents.  However, the documents cannot be used as evidence in Court (article 1 of Government Regulation on Changes of Stamp Duty Tariff and Amount of Nominal Price (No.24 of 2000).

Where payment of stamp duty is arranged after the fact, an administrative penalty of 200% of the amount payable is applicable (article 8, Law on Payment of Stamp Duty (No.13 of 1985)).

Recently, we became aware that the Directorate-General of Taxation plans to increase the amount of duty payable (see here).  It is proposed that the IDR6,000 meterai be increased to IDR18,000 (around USD1.35), and the IDR3,000 meterai be increased to IDR10,000 (around USD0.75). Revisions to the Law on Payment of Stamp Duty are in the National Legislative Program for 2015, and a revision is expected to be debated within this year.

(Authored by Jennifer Tangka, Associate)