Import Duty in Indonesia 2026: Rates, Taxes & Calculation

Importing goods into Indonesia in 2026 typically involves four charges: import duties in Indonesia (Bea Masuk) based on the product’s HS code, VAT at an effective 11% for most goods, Article 22 income tax (PPh 22) of 2.5% to 10%, and, for some products, luxury goods tax or excise. Small consignments and e-commerce parcels follow a separate, simplified regime.

According to PMK 4/2025 issued by the Ministry of Finance, the maximum value of tax-free items for import into Indonesia will be decreased from US$75 to below US$3 for each recipient and shipment.

Key Takeaways

• Import duty: Commercial imports pay the MFN rate set for each HS code in the Indonesian Customs Tariff Book (BTKI 2022), unless a free trade agreement rate applies.
• VAT: The statutory rate is 12%, but for non-luxury goods it is charged on 11/12 of the import value, an effective 11% (PMK 131/2024). Luxury goods pay the full 12%.
• PPh 22: Under PMK 51/2025, in force since 1 August 2025, the rate is 2.5% for importers with an API, 7.5% without an API, and 7.5% or 10% for listed goods, doubled if the importer has no NPWP.
• Consignments: Parcels up to FOB USD 3 are exempt from duty. Parcels of FOB USD 3–1,500 pay 7.5% duty, or 0%, 15% or 25% for eight commodity groups, under PMK 96/2023 as amended by PMK 4/2025. VAT still applies.
• Licences: Under Permendag 16/2025, in force since 29 August 2025, the NIB issued through OSS serves as the importer identification number (API).
• Savings: FTA preferential rates, bonded zones, KITE, Special Economic Zones and the Batam free trade zone can reduce or defer duties and taxes.

Understanding Import Duties, Tariffs, and Taxes in Indonesia

Import Taxes in Indonesia Explained

Import duty (Bea Masuk)

Import duty is charged as a percentage of the customs value, which Indonesia calculates on a CIF basis (cost, insurance and freight). The rate depends on the product’s 8-digit HS code in the Indonesian Customs Tariff Book (Buku Tarif Kepabeanan Indonesia, BTKI 2022), set under PMK 26/2022. Most industrial inputs carry low rates, while finished consumer goods, alcohol and some agricultural products carry higher ones.

Two things can change the rate you pay:

• Preferential FTA rates: Goods with a valid certificate or declaration of origin from an FTA partner can enter at a lower or zero rate.
• Additional duties: Anti-dumping duty (BMAD), safeguard duty (BMTP) and additional import duty (BMT) apply to specific products and origins, such as certain textiles, steel and ceramics.

Value added tax (PPN import)

Since 1 January 2025, the VAT rate is 12% under the Harmonisation of Tax Regulations Law (UU HPP). Under PMK 131/2024, VAT on non-luxury goods is calculated on a tax base of 11/12 of the import value, which produces an effective rate of 11%. Goods subject to luxury goods tax pay VAT at the full 12%.

Import VAT is creditable as input tax for importers registered as VAT-able entrepreneurs (PKP).

In specific cases, VAT exemptions apply to ease the import process for particular categories of consigned goods. These include goods sent by Hajj pilgrims and prizes from international competitions or awards, provided they meet the eligibility criteria set out in the regulation. These provisions are intended to reduce the tax burden on personal or honorary imports while maintaining fair tax treatment for high-value luxury items.

Article 22 income tax (PPh 22 import)

PPh 22 is an advance payment of income tax collected by Customs at the time of import. PMK 51/2025, effective 1 August 2025, replaced PMK 34/2017 and its amendments.

Importer or goods	PPh 22 rate (of import value)
Importer with an API (NIB)	2.5%
Importer without an API	7.5%
Listed goods in Annex A (mostly finished consumer goods)	10%, with or without an API
Listed goods in Annex B	7.5%, with or without an API
Soybeans, wheat and wheat flour	0.5%
Importer without an NPWP	100% higher than the applicable rate

PPh 22 on imports is not final: it can be credited against corporate income tax in the annual return. PMK 51/2025 also lists exempted imports, such as goods for diplomatic missions, disaster relief, research, and books.

Income tax on imported goods is determined by the applicable import duty rate. Items taxed at 15% or 25% import duty are subject to a 5% income tax, while goods with a 0% import duty are exempt from this tax.

Furthermore, for imported goods taxed according to their HS code classification, the applicable income tax rate depends on whether the importer holds a Tax Identification Number (NPWP). If the importer possesses an NPWP, a 10% income tax will apply, otherwise, the rate increases to 20% for those without an NPWP.

Luxury goods sales tax (PPnBM)

PPnBM applies once, at import or first delivery, to goods classified as luxury, such as motor vehicles above set thresholds, yachts, private aircraft and certain high-value residential property. Rates range from 10% to 200%. For motor vehicles, the rate depends on engine capacity, emissions and fuel efficiency.

Excise (cukai)

Excise applies to tobacco products, ethyl alcohol and alcoholic beverages, and to other goods the government designates. Excise is charged as a specific amount per unit or per litre, set in Ministry of Finance regulations, and payment is evidenced by excise stamps (pita cukai).

Import Tax Regulations in Indonesia

Under the newly issued PMK No. 4/2025, the tax treatment for imported goods into Indonesia has been refined. Previously, based on PMK No. 199/2019, all taxable imported goods were subject to a 7.5% import duty, 10% value-added tax (VAT), and a 10% income tax, totaling 27% in import-related taxes.

With the implementation of PMK 4/2025, the structure has changed:

• Import duties are now applied progressively at 0%, 15%, or 25%, depending on the commodity.
• A 5% income tax is only charged on goods subject to the 15% or 25% import duty.
• VAT remains at 11%, following the updated national VAT rate.

This means that for many items, especially those falling under the 0% duty category, importers now only pay 11% VAT, reducing the overall tax burden significantly. Even for goods in the 15% or 25% duty brackets, the total payable tax is often lower than the previous 27% rate, offering substantial relief to importers.

However, this new regulation excludes certain categories such as footwear, bags, and garments, which remain subject to higher duties or specific trade policies.

As a result, many e-commerce businesses are optimistic that the streamlined tax structure under PMK 4/2025 will stimulate consumer demand, support local sellers engaged in cross-border trade, and contribute to narrowing Indonesia’s trade deficit.

The Exception: Batam

PMK 4/2025, like its previous regulations, applies to all regions in Indonesia. However, Batam remains a controversial region due to its status as a free trade zone area, and all goods imported into Batam are not subject to import taxes in Indonesia 2025 and Indonesia import duties – unless the goods are further distributed to other Indonesian regions from Batam.

Therefore, to continue bringing more foreign exchange to Indonesia with the international trade traffic in Batam, the new regulation only applies to imported goods released from Batam to other Indonesian regions.

Free Trade Agreements and Import Tariffs in Indonesia

In addition to the above, import tariffs from countries with trade agreements with Indonesia will differ. The first is import tariffs between Australia, New Zealand, and ASEAN countries. The second one is between South Korea and ASEAN countries. The third one is between India and ASEAN countries. And the fourth one is between China and ASEAN countries.

READ MORE:

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• Export-Import Indonesia: A Guide to Becoming A Reputable Exporter and Importer

Restricted or Prohibited Goods to Import to Indonesia

Importing goods into Indonesia can open doors to exciting business opportunities, but navigating the regulations can feel overwhelming. This guide simplifies the process by breaking down the key aspects you need to consider for a smooth import experience.

Prohibited Goods to Import to Indonesia

Indonesian authorities prioritize national security, public health, and cultural heritage. To safeguard these, they strictly control the import of certain items. These are strictly banned due to their potential harm. Examples include:

• Illegal drugs and psychotropic substances
• Hazardous and toxic materials (B3)
• Ozone-depleting substances
• Obscene and pornographic content
• Counterfeit items and those that infringe on intellectual property rights
• Second-hand clothing, electronics, and other used items
• Weapons, including firearms, ammunition, and explosives without proper authorization
• Certain food and beverage products containing harmful additives or not meeting health standards
• Wildlife products such as human skeletons, specific sea shells, beef, animal fats and oils, exotic birds (except a few specified ones), wild animals, their parts, and certain live birds and animals

In addition, antiques and certain chemicals face a complete import ban to protect cultural heritage and public safety.

Restricted Items to Import to Indonesia

Importing these requires special permits and adherence to specific regulations. This category includes:

• Iron and steel products
• Textile and textile products (fabrics, garments, and home textiles)
• Footwear (shoes, sandals, and boots)
• Electronics and telecommunication devices
• Cosmetics and personal care products
• Children’s toys for under 14 years
• Food and beverage products (processed foods, beverages, and supplements)
• Agricultural products including rice, sugar, and horticultural products
• Second-hand machinery and equipment
• Waste and scrap materials

Understanding Duties and Exemptions: How Much Will You Pay?

Most imported goods incur import duties in Indonesia, which are essentially taxes levied by the government. However, there are some exceptions that can save you money:

Dutiable Goods

These are items that are subject to import duties in Indonesia, which are essentially taxes levied by the government on the value of the imported goods. The duty amount varies depending on the specific product and its HS code (explained later). Here are some examples of dutiable goods and their associated import charges:

• Luxury Cars: Be prepared for a progressive additional luxury goods tax (PPnBM) ranging from 10% to 200% based on factors such as engine capacity and classification. This is in addition to the regular import duty and VAT, making luxury vehicles one of the most highly taxed import categories.
• Alcoholic Beverages: Expect tariffs to be applied, with rates varying between 5% and 20% depending on the type of drink you’re importing (e.g., wine, beer, spirits).
• Branded Shoes: These are subject to a specific import duty up to 25%

Exempt or Reduced Rate Goods

• Duty-Free Items: Goods with a Free on Board (FOB) value up to USD 3, such as low-value personal items or small online purchase, are fully exempt from import duties and taxes.
• Reduced Rates: For goods within this value range, a tiered import duty system applies at 0%, 15%, or 25%, depending on product type. Goods with 0% duty are exempt from income tax, while 5% income tax will be applied for goods with 15% or 25% duty.
• Special Exemptions: Certain consigned goods such as items sent by Hajj pilgrims and international competition awards are exempt from import duty, VAT, and income tax if specific criteria are met (e.g. value cap, shipment limits).

How to Calculate Import Duty and Taxes in Indonesia

Use these five steps for a commercial import declared on a customs import declaration (PIB):

1. Find the HS code of the product in BTKI 2022 and note the MFN duty rate, any FTA rate, and whether the goods are listed for PPh 22, PPnBM, excise or trade remedies.
2. Calculate the CIF value in rupiah: (FOB + insurance + freight) × the weekly exchange rate set by the Minister of Finance (Kurs Menteri Keuangan).
3. Calculate import duty: CIF value × duty rate.
4. Calculate the import value: CIF value + import duty. This is the base for VAT, PPh 22 and PPnBM.
5. Calculate the taxes:
   • VAT = 12% × (11/12 × import value) for non-luxury goods, which equals 11% × import value.
   • PPh 22 = PPh 22 rate × import value.
   • PPnBM (if any) = PPnBM rate × import value.

Worked example

A PT PMA holding an NIB (API) imports machine parts with a CIF value of USD 20,000. The MFN duty rate is assumed to be 5%, and the Minister of Finance exchange rate is assumed to be IDR 17,000 per USD. The figures are illustrative only.

Item	Calculation	Amount (IDR)
CIF value	USD 20,000 × 17,000	340,000,000
Import duty (5%)	5% × 340,000,000	17,000,000
Import value	340,000,000 + 17,000,000	357,000,000
VAT (effective 11%)	12% × (11/12 × 357,000,000)	39,270,000
PPh 22 with API (2.5%)	2.5% × 357,000,000	8,925,000
Total duties and taxes		65,195,000

If the same importer had no API, PPh 22 would rise to 7.5% (IDR 26,775,000), and total duties and taxes would be IDR 83,045,000. The VAT and PPh 22 are creditable for a PKP with regular tax filings, so the real cost is mainly the duty plus the cash-flow effect.

Common Mistakes that Raise Costs

• Wrong HS code: Misclassification can lead to underpayment penalties of 100% to 1,000% of the shortfall under the Customs Law, or to overpaying duty.
• Missing certificate of origin: Without a valid FTA origin document at the time of import, the MFN rate applies.
• Undervaluation: Customs can adjust the declared value and issue a duty and tax assessment (SPTNP) with penalties.
• Ignoring import restrictions (lartas): Goods that need a technical approval or import approval cannot be released without it, regardless of duty paid.

Importance of Research: Mastering the HS Code

To ensure a smooth import experience and avoid any unexpected delays or charges, researching your specific goods using the Harmonized System (HS) code is highly recommended. This internationally recognized system assigns a unique code to each product, allowing Indonesian customs authorities to efficiently determine the applicable duties and restrictions. You can find the HS code for your product through the manufacturer or online resources.

The official Indonesian customs website is another valuable resource for staying updated on the latest import regulations. Don’t hesitate to consult it for the most current information.

READ MORE:

• Important Things to Know When Appointing A Local Agent or Distributor in Indonesia
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Customs Clearance Process in Indonesia

Documents to prepare

• Commercial invoice and packing list
• Bill of lading or air waybill
• Insurance certificate, if insurance is separately contracted
• Certificate or declaration of origin, to claim an FTA rate
• Import approvals, technical considerations, surveyor reports and product registration numbers for lartas goods
• Letter of credit or payment documents, if requested

Step-by-step clearance

1. Arrival manifest: The carrier submits the manifest (BC 1.1) before the goods arrive.
2. Submit the PIB: The importer or its licensed customs broker (PPJK) files the import declaration (PIB, BC 2.0) electronically through CEISA, with the HS code, value and origin.
3. Pay duties and taxes: Payment is made through a billing code before release, unless a facility applies.
4. Channel assignment: Customs’ risk system routes the shipment to a clearance channel.
5. Examination: Depending on the channel, customs checks documents and, where required, inspects the goods physically.
6. Release: Customs issues the release approval (SPPB), and the goods can leave the port.
7. Post-clearance audit: Customs can re-determine duties within two years of import and audit importers’ books, which the Customs Law requires to be kept for 10 years.

Customs clearance channels

Channel	Who it applies to	What happens
Green (jalur hijau)	Low-risk importers and goods	Released after document checks, without physical inspection
Yellow (jalur kuning)	Medium risk	Document review before release
Red (jalur merah)	High-risk importers, new importers, or goods on risk lists	Document review and physical inspection
MITA / AEO	Priority importers and Authorised Economic Operators	Fast-track release with minimal inspection

New importers are more likely to be routed to the red channel for their first shipments. Consistent, accurate declarations over time help move a company to lower-risk channels.

E-commerce and consignment clearance

Parcels bought from overseas platforms are declared on a consignment note (CN) by the postal or express courier operator, which acts as the customs broker. Parcels above FOB USD 1,500, or goods for commercial resale that do not qualify as consignments, must be imported through the regular PIB route by a registered importer.

Types of Import Permits in Indonesia

This is essential for all importers, but there are different types depending on your business activities:

• General API (API-U): For companies importing for trade purposes.
• Specific API (API-P): Needed for manufacturers importing raw materials or capital goods.
• Other variations (API-T, API-K): Exist for specific situations (direct investment, contractors).

Extra Permit for Specific Goods: NPIK (Special Importer ID)

• Required for importing sensitive goods like electronics or textiles.
• Often involves additional approvals from relevant ministries (e.g., electronics certification).

How to Obtain Import License

1. Set Up Shop: Register your business legally in Indonesia (PT or PMA).
2. Get Tax ID: Secure a Taxpayer Identification Number (NPWP).
3. Gather Documents: Prepare your business registration documents, company details, and potentially a recommendation letter from the Chamber of Commerce.
4. Choose Your Import License Type: Decide if you need a General API or a Specific API based on your import activities.
5. Apply and Wait: Submit your application with the Ministry of Trade (local office might be involved). Approval can take weeks.
6. Customs Registration: After approval, get a Customs Registration Number (NIK) for clearance.
7. Stay Compliant: Keep up-to-date on regulations, pay duties and taxes, and follow any additional requirements for your specific goods.

Remember: An API doesn’t automatically grant import rights. Some products might require extra permits or certifications.

READ MORE:

• Guide to Importing Food, Beverages, Medical Devices and Securing Halal Certification
• How to Import Raw Materials of Food & Beverages into Indonesia

The Procedure of Indonesian Customs

Indonesia, like many nations, has specific customs procedures to manage goods entering and leaving the country. These ensure proper duty collection and regulate border movement. Here’s a quick rundown:

Documentation Essentials

Gather key documents like invoices, certificates of origin, bills of lading, packing lists, and insurance certificates. You’ll also need the Harmonized System (HS) code for your goods and potentially a Material Safety Data Sheet (MSDS).

The Customs Process

1. Declare Your Goods: Electronically submit a detailed customs declaration for your imports/exports.
2. Valuation & Taxes: Indonesian customs will assess the value of your goods to determine import duties and taxes. Ensure accurate information to avoid delays.
3. Inspections & Permits: Be prepared for physical inspections and obtain any necessary permits or licenses for specific goods.
4. Clearance & Delivery: Once checks are complete and duties paid, your goods will be cleared for entry or export. Arrange for their transport within Indonesia or internationally.
5. Record Keeping: Maintain customs documents and transaction records for a set period, as they might be needed for audits.

Additional Considerations

• Restricted/Prohibited Goods: Be aware of limitations on certain items due to legal or safety concerns.
• Customs Brokers: Consider using a licensed customs broker to navigate the complexities and ensure compliance with Indonesian regulations.
• Duty Exemptions & Incentives: Some goods or industries may qualify for duty exemptions or incentives under government programs. Research if your imports or exports are eligible for such benefits.

Following these steps and staying informed about regulations can help ensure a smooth import or export experience in Indonesia.

How to Reduce Import Duties Legally

Free trade agreements

Indonesia’s FTAs can lower duties to zero for qualifying goods, provided the goods meet the rules of origin and the importer holds a valid origin document at the time of import.

Agreement	Partners	Status (September 2026)
ATIGA	ASEAN members	In force
ACFTA	ASEAN–China	In force
AKFTA and IK-CEPA	ASEAN–Korea; Indonesia–Korea	In force
AJCEP and IJEPA	ASEAN–Japan; Indonesia–Japan	In force
AANZFTA and IA-CEPA	ASEAN–Australia–New Zealand; Indonesia–Australia	In force
AIFTA	ASEAN–India	In force
RCEP	ASEAN, China, Japan, Korea, Australia, New Zealand	In force for Indonesia since 2 January 2023
IE-CEPA	Indonesia–EFTA (Switzerland, Norway, Iceland, Liechtenstein)	In force
IUAE-CEPA	Indonesia–United Arab Emirates	In force
IEU-CEPA	Indonesia–European Union	Signed September 2025; entry into force targeted for early 2027
Agreement on Reciprocal Trade	Indonesia–United States	Signed 19 February 2026; check implementing regulations for tariff concessions on US goods

Where several agreements apply, compare the rates for your HS code and choose the one whose origin rules you can meet most easily.

Customs facilities and special zones

• Bonded zones (Kawasan Berikat) and bonded logistics centres (PLB): Import duty is suspended and VAT and PPh 22 are not collected on goods entering the zone for processing or storage.
• KITE (Import Facilities for Export Purposes): Exemption or refund of duty and taxes on raw materials used to produce exports.
• Special Economic Zones (KEK): Duty and import tax facilities for business actors in designated zones, plus simplified licensing.
• Free trade zones: Goods entering Batam, Bintan, Karimun and Sabang are not charged import duty, VAT, PPnBM or excise, but duties and taxes apply when goods move into the rest of Indonesia.
• Capital goods for investment: New or expanding industrial projects can apply for duty exemption on machinery, goods and materials through the investment master list in OSS.

Seeking Assistance: Make it Easy on Yourself with InCorp Indonesia

Navigating import regulations, especially for first-time importers, can be a complex task. If you’re feeling unsure about any aspect of importing goods, consider consulting a customs broker or freight forwarder. InCorp Indonesia (an Ascentium Company) offers a team of experienced customs brokers who can be invaluable in ensuring your shipment arrives safely and efficiently, minimizing any delays or potential issues.

InCorp Indonesia’s customs brokerage services can help you with:

• HS code classification: Ensuring your goods are categorized correctly for accurate duty calculations.
• Duty & tax calculations: Taking the guesswork out of import costs.

By partnering with InCorp Indonesia, you can gain peace of mind knowing your import process is in the hands of experts. Their comprehensive services and local knowledge can help you navigate the complexities of Indonesian import regulations with confidence. Focus on your core business activities while InCorp Indonesia takes care of the import logistics.

Frequently Asked Questions