Credit-Card Issuers Now Required to Divulge Customer Data to Revenue Authorities

As part of the Government’s efforts to raise the tax ratio and boost tax revenues, the Minister of Finance has issued Regulation No. 39/PMK.03/2016 (on Tax Data and Information, and Procedures for Furnishing Tax Data and Information / "New Regulation"), which came into effect on 23 March 2016. The New Regulation amends Minister of Finance Regulation No. 16/PMK.03/2013 for the fifth time.

The New Regulation requires a total of 23 Indonesia-based credit-card issuers to report a wide range of information on customer transactions to the Directorate General of Taxes (as the Indonesian Revenue Service is known), including information on such things as transaction details, dates, values and locations. This marks the first time that credit-card issuers in Indonesia have been required to provide such information to the Directorate General of Taxes.

(For full lists of the credit-card issuers and types of information covered by the New Regulation, see Appendices 1 and 2 below).

The relevant data and information must be provided in electronic form and should be reported on a monthly basis using an online system or directly to the Directorate General of Taxes by the end of the following month at the latest. The first reports must be filed by 31 May 2016 at the latest.

While this new requirement is not in breach of the principle of banking secrecy under the prevailing Banking Law, which protects the privacy of customer deposits, we believe that it has the clear potential to adversely affect the credit-card industry as customer data and information will be used by the Directorate General of Taxes to crosscheck that cardholder expenditure is commensurate with their incomes, as reported in their Annual Individual Income Tax Returns. It is, accordingly, quite likely that some holders of Indonesia-issued credit cards will now consider shifting to credit cards issued by foreign banks that are not affected by the new regulation.

Appendix 1: Credit-Card Issuers covered by the New Regulation

1.    Pan Indonesia Bank, Ltd. Tbk.
2.    PT Bank ANZ Indonesia
3.    PT Bank Bukopin, Tbk.
4.    PT Bank Central Asia, Tbk.
5.    PT Bank CIMB Niaga, Tbk.
6.    PT Bank Danamon Indonesia, Tbk.
7.    PT Bank International MNC
8.    PT Bank ICBC Indonesia
9.    PT Bank Maybank Indonesia, Tbk.
10.    PT Bank Mandiri (Persero), Tbk.
11.    PT Bank Mega, Tbk.
12.    PT Bank Negara Indonesia 1946 (Persero), Tbk.
13.    PT Bank Negara Indonesia Syariah
14.    PT Bank OCBC NISP, Tbk.
15.    PT Bank Permata, Tbk.
16.    PT Bank Rakyat Indonesia (Persero), Tbk.
17.    PT Bank Sinarmas
18.    PT Bank UOB Indonesia
19.    Standard Chartered Bank
20.    The Hongkong & Shanghai Banking Corp.
21.    PT Bank QNB Indonesia
22.    Citibank N.A
23.    PT AEON Credit Services

Appendix 2: Information That Must be Disclosed by Credit-Card Issuers

1.    Bank name (bank or credit-card provider)
2.    Credit-card account number
3.    Merchant ID
4.    Merchant name
5.    Cardholder name
6.    Cardholder address
7.    Cardholder identity number (NIK for Indonesian citizen and passport number for foreign citizen)
8.    Cardholder tax identity number (NPWP)
9.    Billing month
10.    Transaction date
11.    Transaction details (transaction description)
12.    Transaction value (in Indonesian Rupiah)
13.    Credit ceiling (credit limit)



AHP Client Alert is a publication of Assegaf Hamzah & Partners. It brings an overview of selected Indonesian laws and regulations to the attention of clients but is not intended to be viewed or relied upon as legal advice. Clients should seek advice of qualified Indonesian legal practitioners with respect to the precise effect of the laws and regulations referred to in AHP Client Alert. Whilst care has been taken in the preparation of  AHP  Client Alert, no warranty is given as to the accuracy of the information it contains and no liability is accepted for any statement, opinion, error or omission.