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Indonesia Revokes Restrictions on Imported Goods

Indonesia Revokes Restrictions on Imported Goods
Indonesia Revokes Restrictions on Imported Goods. Image Source: katadata.co.id

The government has decided to replace the previously stringent policies, this time allowing passengers to bring goods without quantity limits, subject to taxes.

The Indonesian government has officially revoked the rules regarding restrictions on goods brought in from abroad, which were previously set by the Minister of Trade, Zulkifli Hasan.

This newly implemented regulation replaced the Minister of Trade Regulation Number 36 of 2023 with the Minister of Trade Regulation Number 3 of 2024. The previous policy, many considered too strict, has been in effect since the 10th of March, 2024.

This decision is the result of a closed-door coordination meeting held at the Coordinating Ministry for Economic Affairs together with the Ministry of Trade, the Indonesian Migrant Worker Protection Agency (BP2MI), the Ministry of Industry, and the Directorate General of Customs and Excise, Ministry of Finance that took place on Tuesday, the 16th of April, 2024.

As a result of this [closed-door] coordination meeting regarding PMI (Indonesian Migrant Workers) goods, Trade Minister Regulation Number 36 of 2023 was held, revoked, then returned to Trade Minister Regulation Number 25,” Head of BP2MI, Benny Rhamdani, told the press at the Office of the Coordinating Ministry.

As a result, there will no longer be any restrictions on the number of items brought in from abroad, within the condition of which the passengers must be willing to pay the applicable taxes. Specifically for PMI, the restrictions are only returned in accordance with the relaxation of the imposition of import duties and value-added tax (VAT) worth US$1,500 or the equivalent of Rp24.3 million (assuming an exchange rate of Rp16,205 per US dollar) per year.

“This means that the restrictions on PMI goods are interpreted as relaxing the tax, namely US$ 1,500. PMI cannot be limited in bringing in how many and what types of goods, the only important thing is the value. Well, that is no longer regulated in the Minister of Trade Regulation,” Rhamdani explained further.

Previously, Minister of Trade Regulation Number 36 of 2023 had officially limited imported goods carried by passengers purchased from abroad. Types of passenger luggage that used to be limited in the number of loads include electronic devices; footwear; textile goods; bags; shoes; as well as mobile phones, headsets, and tablet computers. Many are hoping that this new policy will increase convenience for people who want to bring goods from abroad without being constrained by quantity limits.

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