Expense rules in Indonesia.
All DJP rules: 12% PPN, perjalanan dinas and VAT recovery rules in Indonesia.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 12% | Limited | DJP entertainment rules |
| Travel meals | 12% | 100% reclaimable | Per diem cap |
| Accommodation | 12% | 100% reclaimable | Faktur Pajak required |
| Fuel | 12% | 100% reclaimable | Business records |
| Train / KAI / flight | 12% | 100% reclaimable | Public transport |
| Taxi / Gojek / Grab | 12% | 100% reclaimable | E-receipt |
| Client gifts | 12% | Not deductible | DJP cap |
| Parking | 12% | 100% reclaimable | Faktur Pajak |
Faktur Pajak
Mandatory e-faktur for ITC.
Per diem
MNC standard.
Retention
DJP records: 10 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | IDR 5,000/km | By company | Standard practice |
| Motorcycle | IDR 2,500/km | By company | Reduced rate |
MNC practice
Private sector standard.
Records
Date, destination, km.
Covers
Mainly fuel.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Jakarta | IDR 400,000 | IDR 1,800,000 | IDR 2,200,000 |
| Surabaya / Bali | IDR 300,000 | IDR 1,400,000 | IDR 1,700,000 |
| Senior executive | IDR 750,000 | IDR 3,500,000 | IDR 4,250,000 |
| Foreign — Singapore | IDR 1,500,000 | IDR 5,000,000 | IDR 6,500,000 |
| Foreign — Sydney | IDR 2,000,000 | IDR 6,500,000 | IDR 8,500,000 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on faktur.
No statutory rate
No mandatory DJP cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Indonesia → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | No reciprocity | — | No agreement |
| United Kingdom | No reciprocity | — | No agreement |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| ID PPN for foreign | No procedure | — | No general mechanism |
No B2B refund
No B2B recovery procedure.
Free zones
Kawasan Berikat exempt.
Outbound
ID company can recover EU VAT if registered.
Industrialize your Indonesia expenses with Illizeo.
12% PPN, e-faktur OCR, perjalanan dinas, multi-currency IDR↔USD↔EUR↔CHF: all the DJP rules above are natively integrated into Illizeo.
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