Indonesia’s Imports

Indonesia comes in at 108 out of 189 economies on the ease of trading across borders. It takes approximately 99.4 hours to import a product into Indonesia and costs on average $US382.6.

Australian businesses exporting goods to Indonesia should be aware of the various import duties and taxes that may apply, and other import regulations with which they must comply.

For Australians exporting to Indonesia, tariffs and duties
are calculated on the complete shipping value, which includes the cost of the goods, the cost of freight and the cost of insurance.

Australians are buying more and more
from Indonesia. In 2015-16, we spent $5.5 billion on merchandise imports from Indonesia, with the largest single item being mineral fuels and other energy products. Other significant Australian purchase categories from Indonesia included iron and steel, machinery and furniture.

An Indonesia-Australia Comprehensive Economic Partnership Agreement, intended to build upon existing agreements, is currently being negotiated. Indonesia applies most favoured nation status to Australian imports, while Australia applies equivalent concessions through its developing country tariff rate.

Tariffs/import duties

The Directorate General of Customs and Excise is accountable for collecting state revenue associated with import activities including import duties.

The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) applies for numerous goods imported into the country. Indonesia’s customs agency uses a tariff schedule based on the Harmonised Commodity Description and Coding System for classifying goods. In addition to tariffs, Value Added Tax (VAT) is levied on most imports at the rate of 10 per cent of CIF + Import duties (tariff). Certain goods are exempted from VAT. An additional Luxury Goods Sales Tax (LST) is imposed on certain goods that are defined as luxury goods. A Prepaid Income Tax Article 22 is also applied at 2.5 per cent or 7.5 per cent of CIF (cost, insurance and freight) + Import duties.

AANZFTA enforcement will result in tariffs on 92 per cent of affected items being reduced to zero by 2015. This will increase to 94 per cent by 2025. In order to qualify for the AANZFTA tariff rates, a product has to meet strict Rules of Origin requirements and have a Certificate of Origin. It is recommended that you consult DFAT for the most recent requirements. If a product imported into Indonesia does not meet the requirements of being manufactured in Australia, other import duties may apply. These may vary based on the product’s classification and the country of origin. Consult the World Trade Origination (WTO) for the current import duty rates.

Free-trade zones provide business incentives and advantages relating to trade barriers, tariffs, quotas and bureaucratic requirements. Within free trade zones
are bonded zones and industrial estates. Goods may
be imported into a bonded zone and then re-exported without payment of tariffs, unless the goods are sent into the regular customs territory of Indonesia. Companies manufacturing in the Batam free trade zone are exempt from import duties, luxury tax and value added tax.

Import regulations

Importing products into Indonesia requires the completion of several processes and compliance with related regulations. Companies importing goods into Indonesia must obtain an Importer Identification Number (an import licence known as API) from the Ministry of Trade (for local companies) or the BKPM (foreign companies). In addition, to import certain types of products including textiles, shoes and electronic goods, an importer must possess a special import licence from the Ministry of Trade. Alcoholic drinks can be imported into Indonesia but are subject to restrictions. Hazardous waste cannot be imported into Indonesia. 

Want to learn more? Explore our other Indonesia information categories or download the Indonesia Country Starter Pack.