Tariffs and regulations
Tariffs and duty rates are constantly revised and are subject to change without notice.
Austrade strongly recommends you reconfirm these prior to selling to Indonesia.
Australian exporters can access Austrade’s AANZFTA tariff finder. The tool provides an easy reference for Australian exporters who want to know what the applicable tariff rate is for their products under the AANZFTA.
For further information please visit the Indonesian Directorate General of Customs and Excise (in Indonesian only).
Tariffs and non-tariff barriers
Tariff
Indonesian customs use a tariff schedule based on the Harmonized Commodity Description and Coding System for classifying goods.
Indonesia is a member of the Association of South East Asian Nations (ASEAN). Preferential rates are applied to imports from other ASEAN members.
Australia and Indonesia are parties to the ASEAN, Australia, New Zealand Free Trade Agreement (AANZFTA) which entered into force on 1 January 2010.
Australian exporters can now access Austrade’s AANZFTA tariff finder. The tool provides an easy reference for Australian exporters who want to know what the applicable tariff rate is for their products under the AANZFTA.
Highlights of the AANZFTA to Indonesia include:
- The binding of current zero per cent tariffs from entry-into-force on $17.9 million of exports of wheat to Indonesia.
- The current five per cent tariff on pasta will be eliminated on entry-into-force.
- The elimination on entry-into-force of a five per cent tariff on $0.9 million of exports of oranges to Indonesia.
- Most tariffs on seafood exports to Indonesia will be eliminated, either on entry-into-force or by 2013, except for a small number of products on which the tariff will be cut to the 2.5 per cent–7.5 per cent range.
- Tariff-free treatment for most copper and lead products to Indonesia by 2014, except for copper cathodes (a significant export) where the tariff will be bound at five per cent.
- On South Australia’s second most important export to ASEAN, lead, AANZFTA will ensure tariff-free treatment to Indonesia and Malaysia by 2012.
- Tariff-free treatment on almost all tariff lines for automotive parts and equipment achieved by 2020 (and on about 80 per cent of tariff lines by 2013).
- The elimination of tariffs in the zero per cent to 10 per cent range on entry-into-force or 2012 on $1.7 million of exports of optical, photographic, measuring and medical instruments to Indonesia.
- Indonesia has committed to permit foreign lawyers to work or take part in Indonesian law firms (up to five foreign lawyers per firm with an upper limit of 20 per cent) as employees or experts in international law.
Income tax is 2.5 per cent for registered importers and 7.5 per cent for unregistered importers.
Value added tax (VAT) is levied on most imports and the rate is 10 per cent.
Customs authority contact details:
Directorate General of Customs and Excise
Jl. Jenderal Ahmad Yani
Jakarta 13230
PO Box 108 Jakarta 10002
Tel: +62 21 489 0308
Fax: +62 21 489 6206
Telex: DJBC
Non-tariff barriers
Import restrictions
Permission to import is granted to a registered importer, defined as a holder of an Import Registration Number and a Tax Registration Number approved and issued by the Department of Industry and Trade.
Import licences are required for a wide range of goods and are issued by the Department of Industry and Trade.
Restricted and prohibited goods include:
- narcotics
- explosives, including fireworks
- arms and ammunitions
- defined books and printed materials, audio and visual recording media
- certain species of flora and fauna
Some goods are exempt from import duty, including:
- goods for representatives of foreign countries, and international bodies and their officials who work in Indonesia
- goods for research and scientific purposes
- machinery for the establishment of industry
Importers/custom brokers may release certain imported goods by using complementary customs documents to obtain a rush-handling facility. Some goods for which the rush-handling facility can be used include:
- human body organs
- hazardous materials
- live animals and plants
- time sensitive newspapers and magazines
Product certification, labelling and packaging
Labelling
It is normal commercial practice for the marking of outside containers. However, with the exception of certain bulk items, letters of credit numbers and dates of relevant invoices must be indicated.
The use of labels in Bahasa Indonesia is mandatory on all types of goods. Exemptions may be granted only if there are no Indonesian words that can act as a substitute or if there is difficulty in finding Indonesian words with a similar meaning. Approval to omit Bahasa Indonesia labelling must be obtained from the Indonesian Attorney General.
Labels for food products must:
- indicate that the product has been registered with and has a product number (ML number) supplied by the Food and Drug Control Agency
- have an expiration date
- be in the Indonesian language
- have the complete name and address of the importer
- have a halal certificate from an agency approved by the Indonesian Islamic Council if the product is halal
Note: colouring agents used in foods are subject to specific labelling regulations.
Labels for pharmaceutical drugs must show:
- country of origin
- nature of composition
- quantity and registration number (KL registration number with the Ministry of Health)
Cosmetics and hygiene products have specific production, distribution, labelling, packaging and advertising requirements.
Exporters should consult with their importer and local authorities for changes. Further information is available from the Directorate General of Customs and Excise.
Packaging
Goods should be packed securely in standard export packaging. Items easily affected by heat and humidity should be suitably treated and packed to prevent deterioration. Some goods such as food products, beverages, textiles and consumer items must be in the manufacturer’s original packaging. The outer part of each package should be labelled with the type of goods and quantity or weight of contents.
Special certificates
Exporters of livestock should clarify certification with AQIS, Meat and Livestock Australia and the Australian Government Department of Agriculture, Fisheries and Forestry. A halal certificate is required to accompany meat shipments.
Imported medicines require a certificate of analysis from the manufacturer. Regarding medicines, brochures in Indonesian must accompany free medicines for distribution in Indonesia. Retailers are to sell patent medicines only to recognised companies (retailers are prohibited from repacking or mixing operations).
Living plants, seeds and other planting materials require a phytosanitary certificate issued by the approved authority in the country of origin stating that they are free from pests or diseases. In Australia this is usually done through AQIS, the Australian Government Department of Agriculture, Fisheries and Forestry or the relevant state department of agriculture.
Fruit entering Indonesia requires a health certificate issued by the approved authority in the country of origin stating that it is free from fruit fly.
A supplier's certificate is required only for goods imported within investment and project aid schemes.
Further information is available from the Directorate General of Customs and Excise.
Methods of quoting and payment
Quotes should normally be in US dollars and CIF in any major port in Indonesia. Normal terms of payments employed in foreign trade are permitted (letter of credit (L/C), telegraphic transfer in advance, COD or open account, etc). If letter of credit terms are used the tariff code number must be indicated.
Documentary requirements
Pro-forma invoice
Not mandatory, but preferred by importers for quotes.
Commercial invoice
No prescribed form and a minimum of three copies (if L/C payment, minimum of seven copies) are required. The invoice must be signed by the manufacturer or supplier as true and correct. Fax signatures are not permitted. The invoice must indicate the usual full details, including:
- names of shipper
- consignee, buyer (if other than consignee)
- port of loading
- port of discharge
- carrier/vessel
- country of origin
- date of departure
- number and date of invoice
- purchase order number
- number and date of letter of credit (if applicable)
- L/C issuing bank
- exact details of contents (quantity/unit, unit price, total amount in CIF value)
- freight charges
- tariff code number
- insurance premium
- marks
- number and packing (gross weight, net weight
Insurance
Imported goods may be insured either in Indonesia or in the country of origin. For the purpose of import duty calculation, if an importer is unable to show proof of insurance, the insurance value is determined at 0.5 per cent of Cost and Freight (C&F).
Bill of lading
Usually required in three endorsed originals and four non-negotiable copies.
May be made out To Order (if L/C).
Must show details of contents as indicated in the invoice.
Freight must be prepaid.
Must show number and date of invoice, L/C number (if applicable), container and seal number, number of container or packaging.
Packing list
Three originals and four copies are required.
Certificate of origin
One original and two copies are required.
Certificate of analysis
Three originals (if applicable) are required.
Public health requirements
Exporters of livestock should clarify regulations with the Australian Quarantine and Inspection Services, Meat and Livestock Australia and the Australian Government Department of Agriculture, Fisheries and Forestry. Livestock must be slaughtered according to halal requirements (see 'Special certificates' below).
Living seeds and other planting materials require prior approval from the Indonesian Ministry of Agriculture Fruit and vegetables require phytosanitary certificates issued by the appropriate authorities in Australia. Certification that products originate in fruit fly free areas is acceptable.
Indonesian quarantine authorities allow AQIS inspection and standards on imported fruit and vegetables. Fumigation dipping as well as cold treatments are allowed for specific products. AQIS should be contacted regarding these.
Pesticide regulations for fresh fruits and vegetables exist (Maximum Residues Levels).
Fresh fruit must have been refrigerated for 17 days, at 2.8 degrees centigrade or less, prior to importation.
Animal products (semen, etc) must be covered by an import permit issued by the appropriate Indonesian authority. Consignments must be accompanied by a health certificate issued by the appropriate authority in the country of origin (see 'Special certificates' below). Official health certificates may require legalisation by the Indonesian embassy.
The National Drug Policy of 1993 states that a foreign firm may register prescription pharmaceutical drugs only if they use equipment, which is designated with a high technology component, is well recognised by the medical industry and are products of the registering company's own research.