Bringing goods into Indonesia can be a complex process with many rules and financial factors to consider. This guide is here to help you understand the basics of import duties and taxes so you can make informed decisions and avoid unnecessary costs.
With this knowledge, you can make importing goods into Indonesia smoother and more affordable.
Effective January 30, 2020, Indonesia's Finance Ministerial Regulation (PMK) No.199/2019 has amended import duties to reduce the maximum value for tax-free imported goods.
The import tax-free threshold has significantly decreased from USD 75 to USD 3 per recipient and shipment. Under the revised regulations, all taxable imported goods in Indonesia now incur a 7.5% import duty and a 10% value-added tax.
This represents a notable decrease from the previous 10% income tax, value-added tax, and import duty. Consequently, importers are now required to pay only 17.5% for taxable items, a decrease of 9.5% from the previous 27%
In Indonesia, people pay different taxes when importing goods from other countries. These taxes are called customs duties, and they serve different purposes. Essentially, they allow the government to regulate and control the flow of goods into the country while generating revenue.
This duty is levied on imported goods and is calculated as a percentage of their customs value, which includes:
Indonesia imposes a value-added tax on imported goods at a standard rate of 11% of the CIF value. Certain essential goods and services may attract lower or zero-rated VAT.
PPnBM is a luxury goods sales tax that, depending on the item imported, ranges from 10% to 95% of the CIF value.
Indonesia uses a system to classify imported goods based on their type and origin, which helps regulate international trade. This system includes many different parts and rules that are important to follow.
| Components | Description |
| Harmonized Commodity Description and Coding System (H.S. Code) | The H.S. Code forms the cornerstone of Indonesia's import tariff classification, harmonizing and categorizing products for international trade. |
| Most-Favoured Nation (MFN) Tariff | The tariff applies uniformly to all countries without preferential trade agreements. It ensures fair treatment for all trading partners and prevents discrimination in tariff rates. |
| Preferential Tariff | Indonesia has engaged in various preferential trade agreements with different countries and regions, each featuring its Preferential Tariff rates. These agreements offer specific trade benefits, such as reduced or eliminated tariffs, fostering economic cooperation and strengthening diplomatic ties. |
| Pre-entry Classification (Classification Ruling) | Pre-entry classification involves securing a classification ruling from the customs authority before importing specific goods. |
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PMK 199/2019 is effective nationwide in Indonesia; however, its application in Batam, a free trade zone, introduces a unique nuance. Within Batam, all imported goods are granted exemption from import taxes and Indonesian import duties until 2023.
This exemption, however, is conditional on the goods remaining within Batam and not subsequently being distributed to other regions in Indonesia.
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Certain items are prohibited (banned) or restricted (subject to specific conditions) regarding import and/or export activities in Indonesia.
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Once your products arrive in Indonesia, they will go through a process where customs authorities will assign them to one of three different customs zones.
| Channel | Description | Duration |
| Green Channel | Your products are good to go | One day |
| Yellow Channel | Some additional documents are needed* | 2–3 days |
| Red Channel | Physical inspection is required* | Up to 7 days, may require re-import |
| * May include storage costs | ||
For a precise breakdown of your import costs, use these formulas:
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