MINISTER OF FINANCE

OF THE REPUBLIC OF INDONESIA

COPY
REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF
INDONESIA NUMBER 219/PMK.011/2012
CONCERNING
AMENDMENT TO REGULATION OF THE MINISTER OF FINANCE NUMBER
81/PMK.03/2009 CONCERNING
FORMATION OR ACCUMULATION OF RESERVE FUND
DEDUCTIBLE AS EXPENSES
BY THE GRACE OF GOD ALMIGHTY
THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
Considering

a. whereas in order to give a better legal certainty

for Taxpayers who can do a reserve fund
formation or accumulation deductible in
determining taxable income, it is necessary to
make adjustments to the provisions stipulated in
Regulation of the Minister of Finance No.
81/PMK.03/2009 concerning Formation or
Accumulation of Funds Deductible as Expenses;
b. whereas based on the considerations as referred
to in paragraph a and to implement the
provisions of Article 9, paragraph (1) point c of
Law Number 7 of 1983 concerning Income Tax
as has been amended by Law No. 36 Year 2008,
it is necessary to stipulate Regulation of the
Minister of Finance No. 81/PMK.03/2009
concerning Amendment to Regulation of the
Minister of Finance concerning Formation or
Accumulation of Funds Deductible as Expenses;

In View of

: Regulation
of
the
Minister
of
Finance
81/PMK.03/2009
concerning
Formation
Accumulation of Funds Deductible as Expenses;

No.
or

BE IT HEREBY RESOLVED:
To enact

: REGULATION OF THE MINISTER OF FINANCE

CONCERNING AMENDMENT TO REGULATION OF THE
MINISTER OF FINANCE NUMBER 81/PMK.03/2009
CONCERNING FORMATION OR ACCUMULATION OF
FUNDS DEDUCTIBLE AS EXPENSES.

MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA

-2Article I
Several provisions in Regulation of the Minister of Finance No.
81/PMK.03/2009 concerning Formation or Accumulation of Funds Deductible
as Expenses shall be amended as follows
1. The provisions of Article 1 letter a number 2 shall be amended so that
Article 1 reads as follows :
Article 1
The formation or accumulation of reserve fund deductible as expenses shall be
as follows:
a. reserve for bad debts of banks and other entities that extend credit ,
lease with option rights, consumer finance companies and factoring
companies, which include :
1. reserve for bad debts :
a) commercial banks conducting conventional operations;
b) commercial bank conducting business based on sharia
principles;
c) rural banks conducting conventional business , and
d) rural banks conducting business based on sharia principles
2. reserve for bad debts for other business entities that extend credit,
namely business entities other than commercial banks and rural
banks that extend credit to the community, which include :
a) credit unions ;
b) PT Permodalan Nasional Madani (Persero) ;
c) Indonesian Export Financing Agency ;
d) infrastructure financing company that is financing in the form of
provision of funds to infrastructure projects , and
e) PT Perusahaan Pengelola Aset
3. reserve for bad debts for lease with option rights namely reserve for
bad debts for financing activities by providing capital goods to be
used by the lessee for a certain period by payment in installments ,
with the option (Finance Lease);
4. reserve for bad debts consumer finance companies namely reserves
for uncollectible receivables of financing companies that conduct
activities for the procurement of goods based on the needs of
consumers with payment by installments;
5. reserves for uncollectible accounts namely reserves for uncollectible
accounts for financing companies in the form of shortterm
receivables trade of a company along with the administration of the
receivables;
b. reserves for insurance businesses, which include :
1. own coverage premium reserves and own coverage claims for
insurance companies;

MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA

-3c.

d.

e.

f.

2. premium reserves for life insurance companies ;

guarantee reserves for Deposit Insurance Agency, namely underwriting
reserves for guarantee deposit institutions that serve as depositors and
actively participate in maintaining the stability of the banking system in
accordance with the authority;
reserves for mining reclamation expenses, namely expenses for
activities aimed at improving or managing land uses impaired as a
result of mining activities in order to function efficiently according to
the allocation;
reserves for replanting expenses for forestry business , namely reserves
for replanting costs for companies that are required to replant the forest
that has been exploited for business related to the maintenance of the
system concerned with forests, forest areas and forest products
organized in an integrated manner, and
reserves for closing and maintenance expenses of industrial waste
disposal site for industrial waste processing business, closing expenses
and reserves for the maintenance of industrial waste processing
company which includes storage, collection, transportation, utilization,
industrial waste treatment and landfilling of industrial waste processing
products.

2. The provisions of Article 7 paragraphs (1), (3), (4), (5) and (6) shall be
amended so that Article 7 shall read as follows :
Article 7
(1) The amount of bad debt reserves for PT Permodalan Nasional Madani
(Persero), as referred to in Article 1 point a number 2 point b), shall be
determined as follows:
a. 2.5 % (two and a half percent) of the receivables classified as special
mention after deducting the value of collateral;
b. 5 % (five percent) of the receivables classified as substandard after
deducting the value of collateral ;
c. 50 % (fifty percent) of receivables classified as doubtful after
deducting the value of collateral , and
d. 100 % (one hundred percent) of the receivables are classified as loss
after deducting the value of collateral .
(2) The value of collateral that can be deducted from the reserves as
referred to in paragraph (1) shall be maximally:
a. 100 % (one hundred percent) of the value of the collateral that is
liquid , and
b. 75 % (seventy five percent) of the value of other collateral or the
value set by the appraiser.
(3) The amount of receivables that is used as a basis to establish a reserve
fund, referred to in paragraph (1), shall be the principal of loans granted
by PT Permodalan Nasional Madani (Persero).

MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA

-4(4) Losses stemming from receivables, which obviously are uncollectible

shall be charged to bad debt reserve estimates.
(5) In the event that the amount of uncollectible receivables reserves in
whole or in part is not used to cover the losses, referred to in paragraph
(4), the amount of excess reserves shall be treated as income.
(6) In the event that the amount of uncollectible receivables reserves are
used to cover the losses referred to in paragraph (4) , but not sufficient ,
the shortage is accounted for as loss reserves.
3. Between Article 7 and Article 8 shall be inserted 3 (three) articles, namely
Article 7A, Article 7B , and Article 7C which read as follows:
Article 7A
(1) The amount of bad debt reserves for the Indonesian Export Financing
Agency as referred to in Article 1 point a number 2 item c) shall be
determined as follows :
a. 1 % (one percent) of receivables classified as current ;
b. 5 % (five percent) of receivables with the quality in special interest
after deducting the value of collateral;
c. 15 % (fifteen percent) of receivables with the quality as substandard
after deducting the value of collateral ;
d. 50 % (fifty percent) of receivables with the quality doubtful after
deducting the value of collateral, and
e. 100 % (one hundred percent) of receivables with the quality bad debt
after deducting the value of collateral.
(2) The value of collateral that can be deducted from the reserve as referred
to in paragraph (1) shall be maximally:
a. 100 % (one hundred percent) of the value of the collateral that is
liquid , and
b. 75 % (seventy five percent) of the value of other collateral or the
value set by the appraiser .
(3) Amount of receivables used as a basis to establish a reserve fund as
referred to in paragraph (1) shall be the principal given by the
Indonesian Export Financing Institution .
(4) Losses stemming from receivables , which obviously are uncollectible
shall be charged to uncollectible receivable estimates.
(5) In the event that the amount of uncollectible receivables reserves in
whole or in part are not used to cover the losses referred to in
paragraph (4), the amount of excess reserves shall be treated as income.
(6) In the event that the amount of uncollectible receivables reserves are
used to cover the losses referred to in paragraph (4) , but not sufficient ,
the reserves shortage is accounted for as loss.
Article 7B

MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA

-5(1) The amount of uncollectible receivables reserves for infrastructure

financing companies as referred to in Article 1 point a number 2 item d)
shall be as follows :
a. 1 % (one percent) of receivables classified as current ;
b. 5 % (five percent) of receivables classified as special mention after
deducting the value of collateral;
c. 15 % (fifteen percent) of receivables classified as substandard after
deducting the value of collateral ;
d. 50 % (fifty percent) of receivables classified as doubtful after
deducting the value of collateral , and
e. 100 % (one hundred percent) of receivables classified as stalled after
deducting the value of collateral .
(2) The value of collateral that can be deducted as reserves as referred to in
paragraph (1) shall be maximally:
a. 100 % (one hundred percent) of the value of the collateral that is
liquid , and
b. 75 % (seventy five percent) of the value of other collateral or the
value set by the appraiser .
(3) Amount of receivables used as a basis to establish a reserve fund as
referred to in paragraph (1) shall be the principal given by
infrastructure financing companies.
(4) Losses stemming from receivables, which obviously are uncollectible
shall be charged to uncollectible receivable estimates.
(5) In the event that the amount of uncollectible receivable reserves in
whole or in part is not used to cover the losses referred to in paragraph
(4) , the amount of excess reserves shall be treated as income.
(6) In the event that the amount of uncollectible receivables reserves are
used to cover the losses referred to in paragraph (4), but not sufficient,
the reserves shortage is accounted for as loss.
Article 7C
(1) The amount of uncollectible receivables reserves for PT Perusahaan
Pengelola Aset as referred to in Article 1 point a number 2 item d) shall
be as follows :
a. 15 % (fifteen percent) of receivables classified as substandard after
deducting the value of collateral;
b. 50 % (fifty percent) of receivables classified as doubtful after
deducting the value of collateral , and
c. 100 % (one hundred percent) of receivables classified as stalled after
deducting the value of collateral
(2) The value of collateral that can be deducted as reserves as referred to in
paragraph (1) shall be maximally:
a. 100 % (one hundred percent) of the value of the collateral that is
liquid , and

MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA

-6-

(3)
(4)
(5)
(6)

b. 75 % (seventy five percent) of the value of other collateral or the

value set by the appraiser .
Amount of receivables used as a basis to establish a reserve fund as
referred to in paragraph (1) shall be the principal given by PT
Perusahaan Pengelola Aset.
Losses stemming from receivables , which obviously are uncollectible
shall be charged to uncollectible receivable estimates.
In the event that the amount of uncollectible receivable reserves in
whole or in part is not used to cover the losses referred to in paragraph
(4) , the amount of excess reserves shall be treated as income.
In the event that the amount of uncollectible receivables reserves are
used to cover the losses referred to in paragraph (4), but not sufficient,
the reserves shortage is accounted for as loss.
Article II

1. The provisions of Article 1 point a number 2 item c), item d) , and point
e) , Article 7A , Article 7B , and Article 7C shall come into force since tax
year 2012.
2. This Ministerial Regulation shall come into force from its date of
promulgation.
For public cognizance, it is ordered to promulgate this Ministerial Regulation
by announcing it in the Official Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on December 21, 2012
THE MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA,
Signed
AGUS DW MARTOWARDOJO
Promulgated in Jakarta
on December 21, 2012
THE MINISTER OF JUSTICE AND HUMAN RIGHTS
OF THE REPUBLIC OF INDONESIA
Signed
AMIR SYAMSUDIN

MINISTER OF FINANCE
OF THE REPUBLIC OF INDONESIA

-7OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2012 NUMBER

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