How to Calculate Duties and Taxes on Imports to Indonesia requires a clear understanding of the country's customs valuation method, tariff classification, and tax structure. Import duties and taxes are determined by the product's classification under the Harmonized System (HS) code, its customs value, and its country of origin. The Directorate General of Customs and Excise (DJBC) enforces a strict de minimis threshold for low-value shipments: goods valued at US$3 or less are exempt from both import duties and taxes, a key factor for e-commerce and consignment imports.
Import duties in Indonesia are levied on the customs value of the goods, which is determined using the Cost, Insurance, and Freight (CIF) valuation method. This means the dutiable value includes the price of the goods (FOB), the cost of international shipping (Freight), and the cost of insurance (Insurance) up to the port of entry. The specific Import Duty rate is tied to the product's classification under the Indonesian Customs Tariff Book (Buku Tarif Kepabeanan Indonesia or BTKI), which uses an extended Harmonized System (HS) structure, often requiring up to 9 or 10 digits for precise classification. Importers must accurately classify their goods to determine the correct tariff rate, which can range from 0% to significantly higher rates, especially for restricted or sensitive commodities.
The total landed cost for imports to Indonesia is calculated by summing the Import Duty and three primary import taxes: Value-Added Tax (VAT), Income Tax (PPh Pasal 22), and, if applicable, Luxury Goods Sales Tax (PPnBM). The standard VAT rate in Indonesia increased to 12% effective January 1, 2025. This VAT is calculated on the total import value, which is the Customs Value (CIF) plus the Import Duty. The Income Tax (PPh Pasal 22) is a withholding tax on imports, with rates varying based on the importer's Taxpayer Identification Number (NPWP) status and the nature of the goods. For commercial shipments exceeding US$1,500, the PPh Pasal 22 rate is typically 10% for importers with an NPWP and 20% for those without. For low-value consignment goods (US$3 to US$1,500), a simplified, tiered duty and tax structure applies, with the PPh Pasal 22 rate set at 5% for items subject to a 15% or 25% import duty, and 0% for items with 0% duty. To accurately calculate import tax in Indonesia, businesses must use the official exchange rate published by the Ministry of Finance for customs valuation and ensure their declaration is submitted through the mandatory CEISA 4.0 digital customs system.
Determine the Customs Value (CIF): Calculate the total value by adding the Cost of Goods (FOB), International Freight, and Insurance costs. This is the basis for all subsequent calculations.
Classify the Goods: Identify the correct 9- or 10-digit HS Code (import tariff code) for the product to find the applicable Import Duty rate and any specific restrictions.
Calculate Import Duty (Bea Masuk): Multiply the Customs Value (CIF) by the Import Duty rate (e.g., CIF Value x Duty Rate).
Calculate Import Taxes: The total Import Value is the Customs Value (CIF) + Import Duty. The taxes are then calculated sequentially on this Import Value: VAT (12% x Import Value), PPh Pasal 22 (e.g., 10% x Import Value), and PPnBM (if applicable).
Low-Value Consignment (US$2.50 FOB): Since the FOB value is below the US$3 de minimis threshold, the shipment is exempt from all Import Duty, VAT, and PPh Pasal 22.
Commercial Shipment (Over US$1,500 FOB): The shipment is subject to the full, specific Import Duty rate based on its 9-digit HS code, 12% VAT on the Import Value (CIF + Duty), and 10% PPh Pasal 22 (if the importer has an NPWP) on the Import Value.
Mid-Value Consignment (US$50 FOB): The shipment is subject to the simplified, tiered duty rate (e.g., 15% Import Duty) on the FOB value, 12% VAT on the Import Value (FOB + Duty), and 5% PPh Pasal 22 on the Import Value.
Misclassifying the HS Code: Using a 6-digit international code instead of the required 9- or 10-digit Indonesian import tariff code (BTKI) can lead to incorrect duty rates, delays, and penalties.
Ignoring the US$3 De Minimis: Assuming a higher de minimis threshold (like the previous US$75) for e-commerce shipments, resulting in unexpected duties and taxes on low-value goods over US$3.
Failing to Account for PPh Pasal 22: Neglecting the Income Tax component, which significantly increases the total import tax, especially for commercial importers without a registered NPWP (Taxpayer Identification Number).
Indonesia’s customs framework includes several special provisions. The low-value consignment regime, governed by Minister of Finance Regulation No. 4/2025, is critical for e-commerce, setting the duty and tax de minimis at US$3. For formal commercial imports, the mandatory use of the CEISA 4.0 system streamlines the electronic declaration process. Furthermore, specific duty and tax exemptions or deferrals are available for goods imported into designated Free Trade Zones (KPBPB), Special Economic Zones (KEK), and Bonded Zones (TPB), provided the importer complies with the Ministry of Trade’s 2025 regulations (e.g., Permendag 16/2025 and 22/2025).
The customs valuation basis in Indonesia is CIF (Cost, Insurance, and Freight). This means the value used to calculate import duties includes the cost of the goods, the cost of shipping, and the cost of insurance up to the port of entry.
The standard Value-Added Tax (VAT) rate on imports to Indonesia is 12%, which became effective on January 1, 2025. This tax is calculated on the total Import Value (CIF + Import Duty).
For consignment or low-value shipments, the de minimis threshold for both import duties and taxes is US$3 (FOB value). Shipments valued at US$3 or less are exempt from all duties and taxes.
The official digital customs system for commercial imports is CEISA 4.0 (Customs-Excise Information System and Automation). Low-value consignment goods are declared using the PIBK (Special Imported Goods Notification) through the Customs Service Computer System (SKP).