Indonesia Import Guide › Duties and taxes
Last updated: 6 November 2026
Short answer: Indonesia charges import duty on the CIF value (0–150% depending on the HS code, often lower under free trade agreements), then VAT and income tax article 22 on CIF plus duty. For most goods VAT is effectively 11%, and income tax article 22 is 2.5% for importers with an API or 7.5% without. With a 10% duty rate, total import taxes come to about 25% of CIF for an importer with an API.
What taxes apply to imports in Indonesia?
| Charge | Rate | Calculated on | Legal basis |
|---|---|---|---|
| Import duty (bea masuk) | 0–150% (MFN), lower or zero with valid proof of origin under a free trade agreement | CIF value | PMK 26/PMK.010/2022 (BTKI 2022) and amendments, latest PMK 50/2026 |
| VAT on imports (PPN) | 12% on a base of 11/12 of import value, so 11% effective; 12% for luxury goods | CIF + duty | PMK 131/2024 |
| Income tax article 22 (PPh 22) | 2.5% with API; 7.5% without API; 10%, 7.5% or 0.5% for goods in Annex A, B or C | CIF + duty | PMK 51/2025 (since 1 August 2025) |
| Luxury goods sales tax (PPnBM) | 10–95%, only for goods classed as luxury, such as motor vehicles, yachts and aircraft | CIF + duty | Luxury goods regulations |
| Anti-dumping or safeguard duty | Product-specific | Per regulation | For example PMK 70/2024, PMK 98/2025 |
How do you calculate import duty and taxes?
- Customs value (CIF) = cost of goods + insurance + freight to Indonesia
- Import duty = CIF × duty rate (plus any anti-dumping or safeguard duty)
- Import value = CIF + import duty
- VAT = import value × 11/12 × 12% (11% effective)
- PPh 22 = import value × 2.5% (with API) or 7.5% (without API)
- Total import taxes = duty + VAT + PPh 22 (+ PPnBM if applicable)
Taxes are paid in rupiah, converted at the weekly tax exchange rate (kurs pajak) set by the Ministry of Finance. According to PwC, importers without a tax ID (NPWP) pay PPh 22 at a 100% higher rate.
Worked example
An importer brings in goods with a CIF value of USD 10,000 and an import duty rate of 10% (an illustrative rate; the real rate depends on the HS code).
| Item | Importer with API | Importer without API |
|---|---|---|
| CIF value | USD 10,000 | USD 10,000 |
| Import duty (10%) | USD 1,000 | USD 1,000 |
| Import value (CIF + duty) | USD 11,000 | USD 11,000 |
| VAT (11% effective) | USD 1,210 | USD 1,210 |
| PPh 22 | USD 275 (2.5%) | USD 825 (7.5%) |
| Total import taxes | USD 2,485 | USD 3,035 |
| Share of CIF value | 24.9% | 30.4% |
Freight, insurance, port charges, warehousing and the importer's fees come on top of these taxes. For a VAT-registered importer, import VAT and PPh 22 can generally be credited later, which affects cash flow rather than the final cost.
Can free trade agreements lower the import duty?
Yes. Indonesia applies preferential rates under ASEAN agreements and their partners, including ACFTA (ASEAN–China, PMK 46/PMK.010/2022) and RCEP (procedures in PMK 209/PMK.04/2022). To claim the lower rate, the importer needs valid proof of origin, such as Form E for ACFTA, and claims can be audited. Check both the MFN and the preferential rate for your HS code on INSW before shipping.
What about small parcels and e-commerce shipments?
Small parcels sent by courier or post follow separate consignment goods rules (PMK 96/2023, amended by PMK 111/2023 and PMK 4/2025):
| FOB value per shipment | Charges |
|---|---|
| Up to USD 3 | No import duty or PPh 22; VAT still due |
| Above USD 3 up to USD 1,500 | Flat 7.5% import duty plus VAT; PPh 22 not charged for most goods. Some goods have their own duty rates and may also attract income tax: books 0%; cosmetics, iron and steel goods and watches 15%; bags, textiles, footwear, e-bikes, e-scooters and bicycles 25% |
| Above USD 1,500 | Normal import rules apply |
Brands selling commercial stock usually import as regular cargo through an importer with an NIB, so that product registrations and permits are in place.
Are there extra duties on some products?
Yes. Indonesia applies anti-dumping duty (BMAD) and safeguard duty (BMTP) to specific products on top of normal import duty. Examples include a safeguard duty on woven cotton fabrics (HS 5208–5212) under PMK 98/2025, in force from 10 January 2026 for three years, and anti-dumping duty on ceramic tiles from China under PMK 70/2024. Check your HS code on INSW for any extra duty.
Frequently asked questions
Is import VAT in Indonesia 11% or 12%?
The statutory rate is 12%, but for most goods it is charged on 11/12 of the import value, so the effective rate is 11%. Luxury goods subject to PPnBM pay the full 12% (PMK 131/2024).
What is the PPh 22 rate on imports in 2026?
Under PMK 51/2025, it is 2.5% for importers with an API and 7.5% without, with rates of 10%, 7.5% and 0.5% for goods listed in its annexes. It is calculated on CIF plus import duty.
Do goods from China pay lower import duty?
They can. Under ACFTA many goods from China qualify for preferential rates, but only with valid proof of origin (Form E). Without it, the normal MFN rate applies.
Which currency are import taxes paid in?
In rupiah, converted at the weekly tax exchange rate (kurs pajak) set by the Ministry of Finance.
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Import procurement solutionCBM calculatorSources
- JDIH Kemenkeu: PMK 50/2026 amending the customs tariff (BTKI)
- PwC Tax Summaries: Indonesia, other taxes
- DJP: PMK 131/2024, VAT rate and 11/12 tax base
- JDIH Kemenkeu: PMK 51/2025 on income tax article 22
- DDTC: PPh 22 objects, rates and base, 2026 update
- PwC Tax Summaries: Indonesia, withholding taxes
- JDIH Kemenkeu: PMK 46/PMK.010/2022, ACFTA tariff
- DDTC: RCEP tariff rules (PMK 209/PMK.04/2022)
- JDIH Kemenkeu: PMK 96/2023 on consignment goods
- SIP Law Firm: PMK 4/2025 amending PMK 96/2023
- DDTC: duty rates for certain consignment goods, incl. bags and shoes
- PMK 98/2025: safeguard duty on woven cotton fabrics (summary)
- JDIH Kemenkeu: PMK 70/2024, anti-dumping duty on ceramic tiles
- INSW: Indonesia National Trade Repository
This guide is general information, not tax advice. Rates change; confirm the rate for your specific HS code before shipping.