Indonesian customs collects import duty, VAT and import income tax (PPh 22) before releasing a standard commercial shipment. For ordinary non-luxury goods with 10% duty and 2.5% PPh 22, those charges come to about a quarter of the goods’ customs value.
However, the amount changes with the product, its origin and the import route. Some goods qualify for lower duty under trade agreements, while others attract higher income-tax rates, luxury goods tax or excise.
In this article, we will walk you through the calculation, show what a shipment costs at clearance, and explain the separate rules for courier shipments and online orders.
Import duty and taxes in Indonesia
Most commercial imports involve three main charges: import duty, VAT and PPh 22. The table below shows how these fit together, along with the additional charges that apply to certain products.
| Charge | Rate or treatment | Calculation basis |
|---|---|---|
| Import duty, bea masuk | Set by the HS code and any preferential tariff | Customs value |
| Value-added tax, PPN | Effective 11% for ordinary non-luxury goods; full 12% for goods classified as luxury goods | Import value, with the prescribed adjustment for non-luxury goods |
| Import income tax, PPh 22 | Common rates include 2.5%, 7.5% and 10% | Import value |
| Luxury goods tax, PPnBM | Set by the product category | The prescribed tax base |
| Excise, cukai | Set by the excisable product | Quantity or value under the product rules |
These charges do not all use the same base. Import duty is calculated from customs value first. VAT and PPh 22 then use the import value, which includes duty and other customs levies.
There is also a difference between the amount you pay at clearance and the final cost to your business. Eligible VAT and PPh 22 payments are creditable later, but you still need to fund them when the shipment arrives.
How customs determines your shipment’s value
The calculation starts with the goods’ cost, insurance and freight value, commonly called CIF. This includes the goods themselves, plus freight and insurance to the Indonesian port of import.
If you buy on free-on-board terms, or FOB, add freight and insurance to establish CIF. You must also add royalties and license fees tied to the imported goods when they are a condition of sale and are not already included in the price.
Convert the CIF amount into rupiah using the Ministry of Finance’s customs exchange rate for the relevant period. This may differ from the commercial exchange rate used by your bank.
Why the declared value needs supporting documents
Keep invoices, payment records and freight and insurance documents consistent with the declaration. Under Article 17 of the Customs Law (Law 10/1995, as amended by Law 17/2006), Customs may redetermine the tariff and customs value within two years of the customs declaration.
An incorrect value declaration that causes underpaid duty attracts a fine of 100% to 1,000% of the shortfall under Articles 16 and 17. Supporting documents help substantiate the value if Customs reviews it later.
How to calculate import duty and tax in Indonesia
With the customs value established, calculate each charge in sequence. For a standard non-luxury commercial shipment, the formula is:
- Customs value in rupiah: CIF value in foreign currency × customs exchange rate.
- Import duty: customs value × duty rate.
- Import VAT: import value × 11/12 × 12%.
- PPh 22: import value × the rate for your goods and importer status.
In the example below, import value equals customs value plus ordinary import duty. If the goods attract additional customs duties, such as anti-dumping duties, those also need to be included.
Example: importing a USD 20,000 shipment
Suppose your supplier charges USD 20,000 for the goods on FOB terms. Freight costs USD 1,500 and insurance costs USD 100, bringing the CIF value to USD 21,600.
For this example, assume an exchange rate of IDR 16,000 per USD, a 10% duty rate and 2.5% PPh 22. The goods are non-luxury products and attract no additional duties or excise.
| Charge | Calculation | Amount |
|---|---|---|
| Customs value | USD 21,600 × IDR 16,000 | IDR 345,600,000 |
| Import duty | IDR 345,600,000 × 10% | IDR 34,560,000 |
| Import value | IDR 345,600,000 + IDR 34,560,000 | IDR 380,160,000 |
| VAT | IDR 380,160,000 × 11/12 × 12% | IDR 41,817,600 |
| PPh 22 | IDR 380,160,000 × 2.5% | IDR 9,504,000 |
| Total duty and taxes payable | Duty + VAT + PPh 22 | IDR 85,881,600 |
The combined charges equal 24.85% of CIF. The 24.85% figure is specific to this example, rather than a standard Indonesian import-tax rate.
If PPh 22 were charged at 7.5%, that payment would rise to IDR 28,512,000. The total payable at import would then increase to IDR 104,889,600.
Before using this calculation to set your selling price, confirm the product classification, duty rate and PPh 22 treatment. Also budget separately for broker fees, terminal charges, storage and delivery, which are not included in the tax calculation.
How your HS code affects import duty
The duty rate comes from the goods’ classification under the Harmonized System, or HS. Indonesia uses eight-digit tariff codes in the Indonesian Customs Tariff Book, BTKI.
The correct code depends on the product’s function, materials and technical specifications. Goods sold under the same broad description may fall into different tariff lines.
| Example product | Indonesian tariff code |
|---|---|
| Smartphones | 8517.13.00 |
| Microwave ovens | 8516.50.00 |
| Washing machines with dry-linen capacity exceeding 10 kg | 8450.20.00 |
| Compression-type household refrigerators with capacity not exceeding 230 liters | 8418.21.10 |
These examples illustrate the level of detail needed. A smaller washing machine or a refrigerator-freezer combination has a different classification.
Search the full code in the Indonesia National Single Window, INSW, to check duty rates and import restrictions. When asking a customs broker to confirm the code, provide the product specifications as well as its commercial name.
Lower duty under trade agreements
After confirming the classification, check whether the goods qualify for a preferential tariff. Trade agreements offer reduced or zero duty when the goods meet the origin rules and the importer satisfies the documentary requirements.
Shipping from a partner country alone is insufficient. For ASEAN trade, accepted proof includes Form D or another approved origin document or declaration.
Preferential duty does not automatically remove other charges. VAT and PPh 22 may remain payable, and anti-dumping or safeguard duties need a separate check.
Import VAT in Indonesia
Once duty has been calculated, the next step is import VAT. Under PMK 131/2024, ordinary non-luxury goods attract 12% VAT applied to 11/12 of the import value, producing an effective rate of 11%.
Goods classified as luxury goods under the tax rules attract the full 12% on import value. The classification depends on the legal product category, so a high price or premium brand does not automatically make an item a luxury good.
Some products qualify for VAT exemptions or other facilities. Confirm that treatment before applying the standard formula.
When import VAT is creditable
A VAT-registered business, Pengusaha Kena Pajak (PKP), may credit eligible import VAT against output VAT. To qualify, the goods’ use and supporting documents must meet the input-tax requirements.
For example, VAT connected with exempt activities receives different treatment from VAT connected with taxable sales. Registration alone does not make every import payment creditable.
Even when the payment qualifies, an input-tax credit is different from an immediate refund. Include the full VAT amount in your clearance budget, then establish when the business will use the credit.
Import income tax: PPh 22
PPh 22 is collected alongside the other import charges. Under PMK 51/2025, its rate depends on the goods and whether the importer uses an importer identification number, Angka Pengenal Impor (API).
| Import category | PPh 22 rate |
|---|---|
| Ordinary goods outside the special categories, imported with an API | 2.5% |
| Those ordinary goods imported without an API | 7.5% |
| Goods in the regulation’s 10% list, with or without an API | 10% |
| Goods in the regulation’s 7.5% list, with or without an API | 7.5% |
| Soybeans, wheat and wheat flour covered by the regulation, imported with an API | 0.5% |
| Gold bars covered by the regulation, with or without an API | 0.25% |
Having an API does not guarantee the 2.5% rate. The 10% list includes smartphones under 8517.13.00, anti-acne preparations under 3304.99.20, and other face or skin creams and lotions under 3304.99.30.
PPh 22 collected on imports is not a final tax. The importer credits it against its own income tax, so keep the import and payment documents for the annual return.
Luxury goods tax and excise
The standard calculation above covers ordinary non-luxury goods. If your product falls into a luxury or excisable category, you will need to add the corresponding charge.
Luxury goods tax applies in addition to VAT on designated products, including certain motor vehicles, yachts and firearms. The rate depends on the product category.
Alcoholic drinks and tobacco products also attract excise. Excise does not replace duty or other import taxes, and commercial importers must meet the excise licensing requirements.
Import tax on online orders and courier shipments
Postal and courier shipments follow the consignment rules under PMK 96/2023, as amended by PMK 4/2025. These use FOB value per recipient per shipment to determine the main thresholds.
| FOB value or product category | Import duty | VAT | PPh |
|---|---|---|---|
| Up to USD 3 | Exempt | Effective 11% for ordinary non-luxury goods | Exempt |
| Above USD 3 to USD 1,500, ordinary goods | 7.5% | Effective 11% | Exempt |
| Above USD 3 to USD 1,500, cosmetics, watches and designated iron or steel goods | 15% | Effective 11% | 5% |
| Above USD 3 to USD 1,500, bags, designated textiles, footwear and bicycles | 25% | Effective 11% | 5% |
| Qualifying books within the simplified regime | 0% | Scientific books qualify for exemption under the prescribed rules | Exempt |
| Above USD 1,500 | Normal HS tariff | Ordinary import VAT rules above | Ordinary PPh 22 rules above |
Once the shipment exceeds the USD 3 duty-relief threshold, duty applies to the full customs value. The threshold is not deducted from the amount being taxed.
The FOB threshold and customs value serve different purposes. Although FOB determines the value band, freight and insurance form part of the customs value used to calculate the charges.
Consignments sent to businesses
Eligible business consignments not exceeding USD 1,500 use consignment-note clearance. Being a company does not by itself require a regular import declaration.
A regular import declaration, Pemberitahuan Impor Barang (PIB), is required for business consignments exceeding USD 1,500 and for certain customs facilities or preferential-tariff claims. Businesses may also choose to use a PIB below the threshold.
Product approvals to arrange before shipping
Calculating the taxes tells you what to budget, but the goods must also meet Indonesia’s import requirements. Many products are subject to import prohibitions and restrictions, larangan dan pembatasan, commonly called lartas.
Use the full HS code to identify which approvals your shipment needs:
- Telecommunications equipment: covered devices need certification from the Ministry of Communication and Digital Affairs. Mobile phones also have IMEI requirements.
- Home appliances: products covered by mandatory Indonesian National Standards, SNI, need the required certification.
- Cosmetics: cosmetics need a BPOM notification before sale.
- Processed food and supplements: retail products subject to registration need approval from the Indonesian Food and Drug Authority, BPOM. Animal and plant products also follow quarantine requirements.
For food, supplements and cosmetics, BPOM registration is part of preparing the product for market. Secure any approvals needed before shipment rather than trying to complete them during clearance.
Halal certification deadlines
Halal certification follows its own timetable. Government Regulation PP 40/2026, enacted and promulgated on 14 October 2026, amends PP 42/2024 and extends the phase-in period for selected categories.
| Product category | Revised timetable |
|---|---|
| Imported food, beverages, slaughter products and slaughtering services | Mandatory certification begins on 18 October 2028 |
| Cosmetics, health supplements, herbal medicines and quasi-drugs | Phase-in ends on 17 October 2028 |
| Class A medical devices covered by the halal rules | Phase-in ends on 17 October 2028 |
The extension leaves BPOM, customs and other product requirements in place. Our report on Indonesia’s revised halal certification deadlines explains the changes and the categories that retain their existing dates.
Used goods and prohibited products
Product condition also affects eligibility. Indonesia generally requires imported goods to be new, while Trade Regulation 24/2025 governs authorized imports of goods in non-new condition and non-hazardous waste, including permitted used capital goods.
Prohibited goods cannot enter through the ordinary commercial import route. Restricted goods need the prescribed approvals; missing authorization may result in refusal of release, re-export or other enforcement action.
Documents required for customs clearance
Once the import route and product approvals are settled, the importer or appointed customs broker prepares the declaration. For a standard commercial shipment, the supporting documents include:
- Commercial invoice.
- Packing list.
- Bill of lading or air waybill.
- Freight and insurance information.
- Accepted proof of origin for a preferential-tariff claim.
- Product permits and certifications.
- Authorization for the customs broker, when appointed.
Customs then issues payment instructions through its billing system. Payment and permit requirements must be satisfied before release approval, unless an authorized facility provides another arrangement.
Customs clearance lanes in Indonesia
After the declaration is submitted, Customs assigns a red or green lane through its risk assessment. The lane determines the examination required before release approval.
| Lane | Treatment before release approval |
|---|---|
| Green | No officer’s document examination or physical inspection before approval; subsequent checks remain possible |
| Red | Document examination and physical inspection before approval |
Green-lane treatment does not remove responsibility for accurate declarations and permits. Red-lane selection does not automatically mean the importer has broken a rule.
Clearance time depends on more than payment. Physical examination, incomplete documents and missing product approvals all affect when the goods are released.
Choosing how to import into Indonesia
The importer is responsible for the declaration, payments and required authorizations. You can take on that role through your own Indonesian company or appoint an importer of record.
Import through your own company
Your company needs the correct business activities, a business identification number, Nomor Induk Berusaha (NIB), and the required importer and customs access. The importer type must also match how you intend to use the goods.
A general importer identification number, API-U, supports trading imports. A producer importer identification number, API-P, covers imports for the holder’s own production or operational needs, subject to its restrictions.
If you plan to import regularly, review the requirements for an import license in Indonesia alongside your company setup. Product approvals remain separate from the company’s importer status.
Use an importer of record
For market testing or shipments before your local import setup is ready, an importer of record acts under its own authorizations. The importer of record handles the agreed responsibilities, including declaration, duty settlement and clearance.
Emerhub’s importer of record service in Indonesia supports this route. Please keep in mind that your goods must still meet their product-registration, certification and import-permit requirements.
Importing to Indonesia with Emerhub
Our team reviews your products and import plans before shipment, helping you establish the cost and approvals needed for clearance. We can help you:
- Check HS classifications, duty rates and product restrictions.
- Establish a company with the required import activities and registrations.
- Import eligible goods through an importer of record arrangement.
- Coordinate BPOM, SNI and other product approvals.
- Prepare shipment documents and work with customs brokers.
Contact our Indonesia team to discuss your products, shipment value and import plans.
Frequently asked questions
How much is import tax in Indonesia?
The total depends on the HS code, customs value, importer status and import route. In the example above, 10% duty, effective 11% VAT and 2.5% PPh 22 produce a combined payment equal to 24.85% of CIF.
That percentage changes when the goods have a different duty rate, higher PPh 22 or additional charges. Check the full classification before estimating your shipment’s taxes.
What is the duty-free limit for online orders?
Ordinary consignments with an FOB value up to USD 3 qualify for import duty relief, although VAT still applies unless a separate exemption is available. Above USD 3, duty applies to the full customs value.
Can I recover import VAT?
A VAT-registered importer may credit eligible import VAT against output VAT when the input-tax requirements are met. Because a credit differs from an immediate refund, budget for the full payment at clearance.
Does an API mean I pay 2.5% PPh 22?
No. The 2.5% rate applies to ordinary goods outside the special categories, while goods in the 10% or 7.5% lists retain those rates with or without an API. Check the PMK 51/2025 annex against the full HS code.
Do ASEAN goods enter Indonesia duty-free?
Goods meeting the ASEAN origin rules qualify for preferential treatment when the importer has accepted proof of origin and meets the procedural requirements. Shipping from an ASEAN country alone is insufficient, and VAT and PPh 22 may remain payable even when duty is zero.
How long does customs clearance take?
Timing depends on examination, payment, documentation and product permits. Red-lane shipments require physical inspection and document examination before release approval, while missing approvals may delay either route.