How Are Import Duties and Taxes Calculated in Indonesia?

Importing goods into Indonesia involves more than just paying for the product and shipping. Duties, taxes, and other fees can significantly affect your total cost, and understanding how they are calculated is essential for smooth customs clearance. But what exactly goes into the calculation?

Understanding the Basics

Indonesia calculates import duties and taxes primarily based on the Customs Value, which is the sum of:

• Cost of Goods – The price you paid to the supplier.
• Insurance – Coverage cost for your shipment.
• Freight – The shipping cost to Indonesia.

This CIF (Cost, Insurance, and Freight) value is then used to determine applicable duties and taxes according to the product’s HS Code (Harmonized System Code), which classifies goods in international trade.

Main Types of Import Taxes in Indonesia

When bringing goods into the country, you may encounter:

• Import Duty (Bea Masuk) – A percentage based on the HS Code and CIF value.
• Value Added Tax (VAT/PPN) – Usually 11% of the customs value plus import duty.
• Income Tax (PPh 22 Import) – A percentage of the customs value plus duty, varying depending on the importer’s tax status.
• Excise Tax (Cukai) – Applies to certain goods like alcohol, tobacco, and sugary drinks.

When Duties and Taxes Apply

• Commercial Imports – Almost all shipments for resale or business purposes.
• High-Value Personal Imports – When exceeding the personal exemption limits (USD 50 for parcels, USD 500 for travelers).

There are no exemptions for misdeclared goods; underestimating values or using the wrong HS Code can lead to penalties, shipment delays, or seizure.

How to Calculate Your Costs

1. Identify your product’s HS Code.
2. Determine the correct CIF value.
3. Apply the import duty percentage.
4. Add VAT, Income Tax, and any applicable excise tax.

Incorrect calculations can lead to higher costs, disputes with customs, and even loss of goods. Working with experts ensures that your documentation, classification, and tax estimates are correct from the start.

Not sure how much you’ll need to pay for duties and taxes? Contact us at indonesia@zendease.com for an accurate cost breakdown before you ship. Our team can help you avoid surprises and keep your supply chain running smoothly.