Position on MAP Arbitration

Indonesia has no domestic mechanism for applying arbitration procedures in relation to the MAP process, other than for the one treaty with Mexico. Indonesia further specified that its treaty policy is not to include a mandatory and binding arbitration provision in its bilateral tax treaties. In this respect, in the Commentary of non-members to the 2017 OECD Model Tax Convention, Indonesia reserved the right not to include paragraph 5 of Article 25 in its tax treaties. Also, Indonesia has put consistent reservation on Multilateral Convention To Implement Tax Treaty Related Measures To Prevent Base Erosion And Profit Shifting (MLI) with regard the arbitration.