How to Export to Indonesia in 2026: Duty, VAT 11% or 12%, Import Licences, Halal

Duty, VAT and income tax: how the import cost is calculated

Import duty (bea masuk) is charged on the CIF value at the rate for the Indonesian tariff code, or at a preferential rate under a trade agreement. Import VAT (PPN) is charged on the CIF value plus import duty. Under PMK 131/2024, in force since 1 January 2025, the VAT rate is 12%, but for goods that are not luxury goods the tax base is 11/12 of the import value, so the effective rate is 11%; luxury goods subject to the luxury-goods sales tax (PPnBM) pay 12% on the full value plus PPnBM.

The importer also prepays income tax under Article 22 (PPh 22) at import, at a rate that depends on its status and the goods; it can be credited against its income tax. Example for non-luxury goods with an illustrative 10% duty: CIF value IDR 100,000,000, duty IDR 10,000,000, VAT 12% of 11/12 of IDR 110,000,000 = IDR 12,100,000, before PPh 22.

Who imports: NIB, API and import approvals

The importer must be an Indonesian business with a business identification number (NIB) issued through the OSS system and registered as a general importer (API-U) or producer importer (API-P). Permendag 16/2025, the general import policy in force since 30 August 2025, divides goods into free and restricted imports and requires import approvals for restricted goods; Permendag 22/2025 covers selected industrial products such as steel, tyres, ceramics, glass, plastic derivatives and alcohol-based fragrance materials, with technical verification and, for some goods, designated entry ports.

A foreign seller cannot import into Indonesia itself; it sells to an Indonesian importer, or to a local distributor that holds the product registrations and appears on the label.

Product rules: BPOM, halal, SNI and labels

• Food, cosmetics, drugs and supplements: registration or notification with BPOM by the Indonesian importer, and a BPOM import permit (SKI) for each shipment (see Triplicate's note on cosmetics in Indonesia).
• Halal: from 18 October 2026, food, beverages and cosmetics, imported ones included, need a halal certificate recognised by BPJPH, or a non-halal statement on the label (see Triplicate's note on halal certification).
• SNI: products under mandatory Indonesian National Standards, such as many electrical appliances, toys and building materials, need SNI certification before import.
• Labels: consumer products must carry information in Bahasa Indonesia, with the importer's name and address.

Low-value consignments

Under Indonesia's rules for consignments (barang kiriman), the import duty exemption applies only to consignments of FOB USD 3 or less; consignments above that pay duty and VAT. Some product groups, such as bags, textiles and footwear, have been subject to their own higher rates. E-commerce sellers should check the current consignment rules with their courier or marketplace.

Trade agreements and proof of origin

Indonesia's agreements include ATIGA and the ASEAN agreements with China, Korea, Japan, Australia and New Zealand, India and Hong Kong, RCEP (in force for Indonesia since 2 January 2023), and bilateral agreements such as those with Japan (IJEPA), Australia (IA-CEPA), Korea (IK-CEPA), EFTA and the UAE. To claim a preferential rate, the importer needs the proof of origin the agreement requires, such as Form D, E, AK, IJEPA or RCEP, and the goods must meet its rules of origin.