Duty Payable | Indonesia Tax Guide 2025 (25)
Indonesia
Tariffs
2025-02-21 09:16:41
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This issue's introduction
Tax payable
Chapter V Tariffs
Tax payable
As a commitment to trade liberalization, the Indonesian government is gradually reducing import duties on most products. Higher rates will still be retained to protect certain industries and products that are more sensitive to national security or socio-cultural factors. In addition to the general import duty rates, some products are subject to other import duty rates such as anti-dumping, safeguards, compensation and subsidies.
(2) Export duties can be calculated based on a certain percentage of the customs value, or specifically based on the tariff rate and quantity in a certain currency. The customs value is determined by the General Administration of Customs based on the price benchmark established by the Ministry of Trade.
(3) ASEAN tariffs
The Indonesian government provides limited exemptions for imported goods that meet the origin criteria, that is, they are obtained in whole or in part from the country of origin and are transported directly between ASEAN member states. The Indonesian government began implementing the ASEAN Trade in Goods Agreement (ATIGA) on January 1, 2010. The plan aims to strengthen trade among ASEAN member states by reducing import taxes on most goods to zero.
(4) Free Trade Area (FTA) Agreement Tariffs
Indonesia has reached the following free trade area agreement tariff rates with other countries:
ASEAN-China Free Trade Area (ACFTA);
ASEAN-Korea Free Trade Area (AKFTA);
ASEAN-India Free Trade Area (AIFTA);
ASEAN-Australia-New Zealand Free Trade Area (AANAFTA);
ASEAN-Hong Kong Free Trade Area (AHKFTA);
ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP);
ASEAN Trade in Goods Agreement (ATIGA);
Indonesia-Australia Comprehensive Economic Partnership Agreement (IACEPA);
Indonesia-Pakistan Preferential Trade Agreement (IPPTA);
Indonesia-Japan Economic Partnership Agreement (IEPA);
Indonesia-Chile Comprehensive Economic Partnership Agreement (ICCEPA);
Memorandum of Understanding on "Trade Facilitation for Specific Palestinian Products" signed between the Indonesian Government and the Palestinian Government;
Indonesia-EFTA Comprehensive Economic Partnership Agreement (Indonesia-EFTA CEPA);
Indonesia-Mozambique Preferential Trade Agreement (IMPTA);
Developing Eight Preferential Trade Agreement (D-8PTA);
Regional Comprehensive Economic Partnership Agreement (RCEP).
The excitement continues in the next issue…