Understanding Indonesia’s Customs and Import Duty Regulations

Navigating the complexities of customs duties and excise tariffs.

The list of goods subject to customs duties and their tariffs has recently become a matter of public discussion, bringing attention to the Directorate General of Customs and Excise.

The entry of goods into Indonesia must comply with government regulations, which control the circulation of goods through the imposition of customs duties. These duties are determined based on certain characteristics to decide whether a good is subject to duties or excise. The primary aims of controlling goods through customs duties are to protect domestic industry, regulate the consumption of certain goods, and increase state revenues. Import duty and excise rates vary depending on the type and value of the goods and applicable government policies. The following is a list of goods subject to customs duty and their tariffs.

There are three types of goods subject to excise, as follows:

• Ethyl alcohol (ethanol);
• Alcoholic beverages;
• Tobacco products.

The reason for imposing excise duty on certain goods is that their use can have negative effects on society or the environment, so consumption needs to be controlled and circulation needs to be monitored.

Restrictions on luggage for passengers from abroad are also regulated in Minister of Trade Regulation (Permendag) Number 7 of 2024 concerning the Second Amendment to Regulation of the Minister of Trade Number 36 of 2023, which was inaugurated on the 29th of April, 2024, and came into effect on the 6th of May, 2024. The following is a list of luggage from abroad subject to restrictions:

• Rice: maximum 5 kilograms per passenger;
• Sugar: maximum 5 kg per passenger;
• Iron or steel, steel alloys and their derivative products: no limit on value and/or quantity:
• Mobile phones, handheld computers, and tablet computers: maximum 2 units per person per arrival;
• Traditional medicines and health supplements: worth a maximum of FOB US$ 1,500 per person;
• Cosmetics and household health supplies: a maximum of 20 pieces per person;
• Other finished textile goods: a maximum of 5 pieces per person;
• Toys: maximum value FOB US$ 1,500 per person;
• Bags: maximum 2 pieces per person;
• Apparel and apparel accessories: no limit on value and/or quantity;
• Textiles and textile products (TPT): no limit on value and/or quantity;
• Textiles and batik textile products and batik motifs: no limit on value and/or quantity;
• Alcoholic drinks: maximum 1 litre;
• Footwear: maximum 2 pairs per person;
• Electronics: maximum 5 units and with maximum value FOB US$ 1,500;
• Two-wheeled and tricycle vehicles: maximum 2 units per person;
• Medicine:

1. Solid preparations (tablets, caplets, capsules, pills, and others): 30 pcs per person for each type/item of product;
2. Semisolid preparations (cream, ointment, gel, suppository, and others): 3 pcs per person for each type/product item;
3. Liquid preparations (syrup, emulsion, suspension, and others): 3 pcs per person for each product type/item;
4. Aerosol preparations: 3 pcs per person for each type/product item or according to a doctor’s prescription for a maximum of 90 days of treatment;

• Natural medicines, quasi-medicines, and health supplements: maximum 5 pcs per passenger for each type/item of product. For tablet/capsule dosage forms in strips/blisters/bottles and packaged in small boxes, the permitted quantity limit is 5 small boxes;
• Cosmetics: maximum 20 pcs per passenger.

There are also imported goods that are subject to import duties by the government. One of them is consignments sent by certain senders abroad via postal services, under the Minister of Finance Regulation concerning Customs, Excise and Tax Provisions for Imported Consignments Number 199/PMK.10/2019. The items shipped that are subject to import duties are as follows:

• Free On Board (FOB) items with a value of more than 3 United States dollars or the equivalent of Rp47,893 (exchange rate of Rp15,964.5 per US dollar);
• Goods shipped with a value of more than FOB US$ 1,500 are subject to general import duties or the equivalent of Rp23.95 million;
• Consigned goods with a customs value of more than US$ 1,500 are notified with a PIB document if the recipient of the goods is a business entity or PIBK if the recipient of the goods is not a business entity;
• Sample/gift items with FOB value greater than US$ 3;
• Imported goods that are categorised as luxury goods (branded bags, diamonds, etc.) based on tax regulations are subject to Luxury Goods Sales Tax (PPnBM).

The import duty rate for imported goods shipped from abroad with a value of more than US$ 3 to US$ 1,500 is 7.5 percent, and is subject to Value Added Tax (VAT) of 11 percent. Shipments with a value of more than US$ 1,500 are subject to special goods import provisions.