Customs and Excise

Import Duty

Import duty is generally payable at rates from 0% – 150% on the customs value of imported goods. Customs value is calculated on Cost, Insurance and Freight level (CIF).

As a commitment to liberalising trade, the Indonesian government is progressively lowering import duty rates on most products. Higher duty rates remain to protect certain industries and goods regarded as sensitive for security
or social and cultural reasons. On top of normal import duty rates, there are several additional import duty rates on certain products such as anti-dumping, safeguard, compensation, and requital import duty rates.

ASEAN duty rates
Limited relief is given to Association of South East Asian Nations (ASEAN) countries on imports of goods that have fulfilled the origin criteria i.e. wholly obtained or not wholly obtained from the origin country and have been directly shipped between such countries. Indonesian government implements the ASEAN Trade In Goods Agreement (ATIGA) since 1 January 2010.

This scheme is intended to increase inter-ASEAN trade by reducing duty rates on most goods to 0% import duty.

Free Trade Area (FTA) Agreement duty rates
Indonesia has also implemented the following FTA duty rates with other countries:

a. ASEAN – China FTA

b. ASEAN – Korea FTA

c. ASEAN – India FTA

d. ASEAN – Australia – New Zealand FTA

e. ASEAN – Japan Comprehensive Economic Partnership

f. Indonesia – Pakistan Preferential Trade Agreement

g. Indonesia – Japan Economic Partnership Agreement

Import duty relief/exemption/deferral
The Indonesian government offers import duty relief, exemption, and/or deferral concessions to foreign and/or domestic investors in order to promote the development of local and export-oriented industries. This concession usually combined with other tax facilities such as VAT and income tax (please refer to pages 70-78 on the relevant tax concession).

Export Duty
Export duty can be calculated based on a certain percentage of customs value (ad valorem) or specifically based on duty rate/quantity in a certain currency. Customs value is determined by the Director General of Customs and Excise in accordance with the price benchmark set by Ministry of Trade.

* The export duty rates depend on the construction progress of the smelter facility

Excise is imposed on certain goods for which distribution and consumption needs to be controlled due to their potential negative effect on society. Currently, goods subject to excise are alcoholic products and tobacco products.

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