Transfer pricing in Indonesia

Transfer pricing in Indonesia at a glance

Regulation Type National regulations / accepts OECD transfer pricing methods
Are there specific transfer pricing regulations? Yes
Submission deadline N/A
Submission deadline upon request 30 days
Annual update required Yes
Official language requirements English and Indonesian
Potential impact of penalties N/A


Indonesian tax law

Rules for transfer pricing in Indonesia are based upon:

  • Article 18 of the Indonesian Income Tax Law (ITL), enacted 1 January 2009 ma


Indonesia is not a member of the OECD, although it has been granted “enhanced participation” status. PER-43 reconfirms the basic transfer pricing concepts and principles of the OECD Transfer Pricing Guidelines.


Accepted methods

Accepted methods are:

  • The comparable uncontrolled price method
  • the resale price method
  • the cost plus method
  • the profit split method
  • the transactional net margin method

Priority of methods

Rules for transfer pricing in Indonesia prescribe that the most appropriate method is used.

Documentation requirements

Information that should be provided:

  • Detailed description of the tested party, such as structure of group’s business, ownership structure, organizational structure, operational aspects of business activities, list of competitors, and descriptions of business environment
  • Pricing policies and/or cost allocation policies
  • Results of comparable analysis on characteristics of products being traded, results of functional analysis, economic conditions, provisions of the contracts/agreements, and business strategy
  • Selected comparable transactions
  • Application of the transfer pricing methods selected by the taxpayer


There are no statutory acceptable languages to be used in documentation. However, the languages accepted for bookkeeping purposes are English and Indonesian. 

Preparation deadline

There is no statutory deadline for preparation, but the documentation must be ready when requested by the tax office.

Deadline to submit upon request

There is no statutory deadline for submission, but disclosure and detailed information of related-party transactions are required in the corporate income tax return. However, in case of a tax audit, taxpayers are required to present their transfer pricing documentation and it would be part of the required documents to be submitted within a one-month period or within seven days pursuant to PER/22/2013.

Advance Pricing Agreements


Advance Pricing Agreements (APA’s) are available according to regulation DGT No. PER 69/PJ/2010 regarding APAs which was issued on 31 December 2010.


An APA may be entered into for a maximum of three years, starting from the tax year in which the APA is agreed. An APA may also cover the year before the APA is agreed, as long as the annual income tax return for that tax year has not been audited, no objection or appeal once it has been filed, and there is no indication of criminal conduct in taxation.


Rules for transfer pricing in Indonesia do not provide specific transfer pricing penalties. This means that ordinary penalties apply.