Tariffs and regulations

Tariffs

Indonesian customs use a tariff schedule based on the Harmonized Commodity Description and 8 number Coding System for classifying goods.

Indonesia is a member of the Association of South East Asian Nations (ASEAN) and preferential rates are applied to imports from other members.

The DFAT Free Trade Agreement Portal provides an easy reference for Australian exporters who want to know what the applicable tariff rate is for their products under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Income tax is 2.5 per cent for registered importers and 7.5 per cent for unregistered importers.

Value added tax (VAT) rate of 10 per cent is levied on most imports.

Non-tariff barriers

Import restrictions

Import permission 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 Ministry of Trade. Import licences are required for a wide range of goods and are issued by the Ministry of 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 goods by using 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 words with a similar meaning.

Indonesia also enforces the ‘Halal’ labelling regulated by National Agency of Drug and Food Control (BPOM) and Halal Product Assurance Agency (BPJPH).

Labels for food products must:

  • indicate that the product has been registered with and has a product number (ML number) supplied by the National Agency of Drug and Food Control (BPOM)
  • have an expiration date
  • be in the Indonesian language
  • have the complete name and address of the importer
  • if the product is halal, have a certificate from an agency approved by the Halal Product Assurance Agency (BPJPH)

Note: colouring agents used in foods are subject to specific labelling regulations.

Labels for pharmaceutical drugs must show:

  • writing on label should be in Bahasa Indonesia
  • country of origin
  • nature of composition
  • quantity and registration number (KL registration number with the Ministry of Health)
  • name and address of manufacturer or importer
  • direction of use/dosage
  • ingredients composition
  • energy value per serving
  • alcohol content (if any)
  • side effect and warning (if any).

Food supplement registration must complete several documents such as:

  • safety and test certificate in organoleptic, physical-chemical, microbial, heavy metal, chemical drugs and psychotropic-narcotic contaminant from laboratory appointed by National Agency of Drug and Food Control (BPOM)
  • toxicity test certificate from country of origin and or from laboratory appointed by National Agency of Drug and Food Control (BPOM)

Cosmetics and hygiene products have specific production, distribution, labelling, packaging and advertising requirements and documents such as:

  • valid certificate of Good Manufacturing Practice or its equivalent from country of origin legalised by the Indonesian Embassy or Consul General of the Republic of Indonesia
  • certificate Free of Sale (CFS) issued by the government body or government regulatory office in the country of origin and legalised by the Indonesian Embassy or Consul General of the Republic of Indonesia located in the country of origin.

Exporters should consult with their importer and local authorities for changes.

Packaging

Goods should be packed securely in standard export packaging and 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.

Colourful and attractive packaging is preferred, Indonesian customers love to see colours, images and designs.

Special certificates

Exporters of livestock should clarify certification with the Australian Government Department of Agriculture (AQIS), Meat and Livestock Australia and the Australian Government Department of Agriculture. A halal certificate is required to accompany meat shipments.

Imported medicines require a certificate of analysis from the manufacturer and brochures in Indonesian must accompany free medicines for distribution. 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 or the relevant state department of agriculture.

Fruit and vegetables require phytosanitary certificates issued by the appropriate authorities in Australia, certification that the product originated in a fruit fly free area 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.

Methods of quoting and payment

No prescribed method for quotes. To be determined by discussions with the importer.

Documentary requirements

Commercial invoice

No prescribed form. A minimum of three copies are required or seven copies if a letter of credit (L/C) payment.

The invoice must be signed by the manufacturer or supplier as true and correct. Fax signatures are not permitted. The invoice must indicate:

  • name of shipper
  • consignee, buyer (if other than consignee)
  • port of loading and discharge
  • carrier/vessel
  • country of origin
  • date of departure
  • number and date of invoice or L/C (if applicable)
  • L/C issuing bank
  • purchase order number
  • exact details of contents (quantity/unit, unit price, total amount in Cost, Insurance and Freight (CIF) value)
  • freight charges
  • tariff code number
  • insurance premium
  • marks, number and packing (gross weight, net weight).

Bill of lading

Bill of lading is required in three endorsed originals and four non-negotiable copies. May be made out To Order if L/C.

Freight must be prepaid and must show details of contents as indicated in the invoice and include:

  • 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 insurance

One original, two copies and if applicable three originals of certificate of analysis are required.

Insurance

Imported goods may be insured 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).

Weights and measures

The metric system is the standard in Indonesia.

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. Livestock must be slaughtered according to halal requirements.

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.

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.