Ordering goods by post to Indonesia for private use (taxes and regulations)

11 min readJan 14, 2022

Many people complain about the cost of importing items to Indonesia. The cost is actually very low for many items, however FUD (fear, uncertainty, and doubt) mean that people spread misinformation about customs procedures.

First of all it is necessary to clarify problematic items:

textiles/clothes and shoes are subject to very high levels of taxation.
any kind of animal, plant or fish matter is subject to the relevant quarantine procedures, which again means confusing procedures.
any kind of food which has been processed is subject to BPOM approval, which means confusing bureaucracy if you want to receive your goods
medicines and traditional medicines are subject to BPOM approval, again more confusion
cosmetics are again subject to BPOM approval
narcotics and psychotropics, including CBD oils, certain medications, etc. means you want to go to jail/experience death by firing squad
excisable goods (tobacco, alcohol) are very limited in quantity
used goods are banned

The general posted item regime is in 199/PMK/2019. This covers ‘barang kiriman’, which is items sent via post/DHL/Fedex, etc, as distinct from items sent by container in quantity.

Excisable Goods

These are limited to:

tobacco to 20 cigarettes/5 capsules/30ml/4 cartridges/50g (e.g., 10 cigarettes AND 25g tobacco would be ok, or 50g tobacco and 0 cigarettes)
350ml of any drink containing alcohol

Any excess must be destroyed. Hence for posted goods no excise duty is ever payable.

General taxation principles

The dutiable value (nilai pabean or NP) is the item cost (‘FOB’) + insurance + shipping
Bea Masuk (import duty) applies at 0%-100%+ on the NP, depending on the item for items costing $3.01 and up (FOB $3.00 and less, BM is waived). A simplified rate of 7.5% is applied to all items FOB $3.01-$1500 except:
1. HS Codes 4901 (books, brochures, leaflets), 4902(newspaper and periodicals), 4903 (children’s books), 4904 (music, both sheet and bound), which uses the specific rate of 0% set for those items generally.
Note this does not include 4905 (maps), 4906 (plans), 4907 (stamps, share certificates), 4908 (transfers), 4909 (postcards), 4910 (calendars), 4911 (photographs, printed cards, catalogues, etc.).
2. HS Codes 4202 (bags/luggage — 15–20% depending on specific code), 61, 62 (clothing — 10–25% based on HS Code), 63 (made-up textiles such as towels, tablecloths, etc. — 5–25% based on HS Code), 64 (shoes and footwear — 5% to 30% based on item).
Bea Masuk Tindakan Pengamanan (anti-dumping duty) applies for a few items for a temporary period (which is often extended several times).

The sum of NP + BM + BMTP is then the post-customs value, subject to further taxation.

The post-customs value is then subject to:

PPN (pajak penambahan nilai VAT) — at 10%, to increase to 11% from 1 April 2022. This applies to all shipments, even those below $3 FOB.
PPh (pajak peghasilan), which is nominatively ‘income tax’, but in practice covers a much wider range of items. For items up to $1500 FOB subject to the flat BM regime of 7.5%, PPh is waived. For other items, PPh is set by regulation depending on HS code, and doubled if the recipient does not have a tax number. PPh is also waived on all items up to $3 FOB.
PPnBM (pajak penjualan barang mewah) — a % tax covering ‘luxury goods’ and only covering a few items.

Documents, letters and postcards are exempt from all taxation. However some people have been charged tax on credit cards.

HS Codes and BM

The HS Code of the item, is a code or every item in existence created by the WCO (World Customs Organization), and used internationally for customs regulations. Indonesia uses the WCO 2017 list with BM rates set based on HS Code in PMK 6/2017, as modified by 213/2017 (which reduced tariffs on ‘environmental goods’ such as filters, soot removers, etc.), 17/2018 (which added that digitally ‘imported’ software is subject to 0% BM, cut the BM on certain bicycle parts/accessories from 30% to 10%, and set BM on diamonds to 0%) and 17/2020 (which cut BM to 0 for certain categories of partially assembled motor vehicles).

PMK 6/2017 consists of 483 pages in Indonesian and English. The Indonesian Customs website has a lookup tool here: https://www.beacukai.go.id/btki.html. However it is not particularly user-friendly and seems to only reflect 6/2017, and not the updated rates. In addition, in many cases it doesn’t return a result because of the way the regulation is structured. It may be better to refer directly to regulation 6/2017.

It is not generally necessary to refer to PMK 6/2017, since most items will be covered under the ‘general’ 7.5% regime, being below $1500, and not one of the clothes/shoes/textiles items subject to variable taxation rates.

For items that you are not sure about the HS Code, the UK has a reasonable HS Code lookup search in English, which can give you one or more HS codes to check (it can be confusing to determine which one to use). Anything outside headers 61–64 and 42.02, will be under the 7.5% regime.

Note that header 65 covers headwear (hats, helmets), and is blessedly not subject to the high tax regime, so you can for example buy a baseball cap from the US, or a bicycle helmet, and pay only 7.5% BM plus 10% PPN.

BMTP

BMTP is set out in the following regulations:

10/2021 for 3 years from February 2021 taxing carpets, rugs, etc. at 78–86,000rp/m² but only if NOT from one of 113 favoured countries listed in the regulation. Note that these are in HS Chapter 57, which is otherwise under the ‘cheap’ 7.5% regime.
55/2020 as modified by 78/2021 covering specific cloth/yarn etc., in specific HS Codes under 52.08–52.12, 54.07–54.08, 55.12–55.16, 58.04, 58.10, 60.01, 60.04–60.06, and charged at 2–10,000rp per metre. Applicable until November 2022, but not from 120 favoured countries.
174/2021 until December 2024 on expanded polystyrene at 2.5 million rp per tonne, and 157/2021 until November 2024 on cigarette papers, except from 124 favoured countries, and 156/2021 on ceramic tiles till 2024
142/2021 on clothing and accessories

142/2021 applies to HS Codes 61.01–61.06/62.01–62.06, 61.09, 61.10, 61.11/62.09, 61.17/62.14. Note that chapters 61 and 62 are essentially the same but applying to the type of cloth (knitted/crocheted, or otherwise). This imposes a tax from November 2021 to November 2024, which can be simplified roughly:

coats, jerseys, cardigans, etc. — 60,000rp per item
suits, dresses, shorts, trousers, skirts — 60,000rp
shirts & blouses — 35,000rp
t-shirts — 28,000rp
baby clothes — 20,000rp
scarves and veils — 20,000rp

Not subject to the duty (but still heavily taxed as per the standard regime):

underwear of all kinds, including nightwear
gloves
track suits, ski suits, swim suits, wetsuits etc.

The exemption for the 122 favoured countries ONLY applies to scarves and veils. For other items, the tax applies to all countries.

PPh (Income Tax)

PPh Pasal 22 (article 22 income tax) applies to imports. This is set by PMK 34/2017, as modified by 110/2018.

Under 34/2017 PPh 22 is exempted:

for goods for disaster relief, social, religious, cultural
for museums, conservation
for the purpose of study and development of knowledge
goods for disabled people
coffins with corpse
household move goods
passenger goods
government imports
non-fiction/educational books, general education books, religious book

In each case it is usually necessary to fill in paperwork and/or obtain prior authorization.

Otherwise PPh applies:

specified items are subject to 10% with or without API (importer ID number), or
specified items are subject to 7.5% with or without API
0.5% for soy, wheat, flour, with API, or 7.5% without
all other items, subject to 2.5% with API, 7.5% without

An API is for businesses with an import licence. For consumers, it can be seen that PPH is either 7.5% by default, but 10% for some items.

The 10% is in Appendix 1 of 110/2018, covering items in numerous codes. However, noting that PPh is waived up to $1500 for items except for codes 4202, 4901–4904, 61–64, then the PPh regime can be simplified as follows for shipments $3.01 to $1500 (FOB):

7.5% for books/printed material not educational (not clear how widely this is applied by customs in practice)
7.5% for all clothes except wet suits 10%
7.5% for textiles such as towels and tablecloths
7.5% for luggage/bags/wallets, unless leather, in which case 10%
10% for footwear, but 7.5% for shoe parts
0 for everything else

If you do not have an NPWP (tax number), the rates are doubled.

Customs database and calculator

I created a spreadsheet here with rates of duty, BMTP, and PPh 22. Note that the 2.5% and 0.5% PPh rates are only valid with import licence (API), otherwise 7.5%. This is mostly useful if you are curious about duties for commercial import, or in the event your personal import exceeds $1500 FOB.

For an import of less than $1500 you can refer to this customs calculator.

PPnBM

Luxury goods sales tax (PPnBM) applies (or more typically doesn’t) based on PMK 96/2021:

motor vehicles (except low CC motorcycles) at variable rates up to 90%
luxury housing over 30 billion at 20%
unpowered air craft such as gliders, hot air balloons at 40%, and powered ones at 50%
ammunition at 40%
firearms, other than airguns, at 50%
watercraft to carry people including yachts at 75%. Not applicable to such craft used for tourism or public transport

Exchange rates

The exchange rates from USD, EUR etc to IDR applicable are set by weekly KMK. The relevant date is when the parcel is processed by customs.

Import paperwork

For shipments up to $1500, customs clearance is done by Consignment Note (CN). Above $1500 a PIBK (special import notification) is applicable for consumers, and PIB (import notification) for businesses.

A CN should specify:

country of origin
weight
shipping costs
insurance
price (FOB or Free on board)
currency
invoice number, date
quantity and description of items with HS code
origin and recipient details including your phone number as recipient

If there is no CN with the item, then you will need to submit a PIB/PIBK for business/personal import.

It is common for senders to lie about the item value, and customs will x-ray and sometimes challenge this amount. You can provide your original evidence/proof if this happens.

The PIB/PIBK is a notice to customs from the importer with the importer’s assessment of the taxes and duties due. This process will follow during the import process.

Under Regulation of Director General of Customs 38/2017 , as modified by 11/2020, the carrier of imported goods must provide in respect of all senders and recipients of goods being brought into Indonesia:

the NPWP (tax number) for tax payers, or if they are not tax payers:
NIK for Indonesian citizens
Passport number for foreigners
Other ID number for other kinds of recipients/shippers

This is the courier’s responsibility.

Payment of taxes and admin charges

Payment of taxes is arranged through your courier (the post office, Fedex, DHL, etc). Tracking can be performed via the customs website here. For the Post Office also here.

The Post Office since November 2021 charges:

an admin fee (including PPN @ 10%) of 5,000rp for items FOB to $3, 15,000rp $3.01 — $75, 30,000rp $75-$1500, 150,000rp over $1500
PPN on the admin fee @ 10% = 500rp/1,500rp/3,000rp/15,000rp
a payment fee of 2% of the taxes levied by the government, with a minimum charge of:
1. 5,000rp for letter post items
2. 10,000rp for trackable items
3. 30,000rp for EMS and insured trackable items

Therefore for example, for a laptop costing $500 + $50 shipping and insurance, based on an exchange rate of $1 = 14,341rp, this works out as 7887550rp = 7,888,000rp. HS Code is 84.71, so not subject to special rules

BM @ 7.5% * 7888000 = 591,600 = 592,000rp
Post-BM value = 7,888,000 + 592,000rp = 8,480,000rp
PPN @ 10% = 848,000rp

Hence payable: 1,440,000rp.

If receiving from the post office using EMS:

payment fee of 2% of 1,440,000 rp = 28,800rp (no rounding), but minimum fee of 30,000rp applies instead
33,000rp admin fee (with PPN)

Total payable1,503,000rp, which works out as 19.1%. This is higher than the theoretical taxes of 1.075 * 1.1 = 18.25%, thanks to the admin charges.

Other couriers check in person for their fees.

The ban on used goods

Trade Regulation 48/2015, article 2(1) provides that goods you import must be in new condition. There is a further ban on used clothes in Permendag 18/2021.

BPOM (medication, cosmetics, processed food)

BPOM Regulation 30/2017 as modified by 15/2020 defines:

Obat (medication) is anything including biological products for cure, prevention, recovery, contraception,
Biological products are from human, animal or microorganisms.
Traditional medicine is medicine that has been traditionally used.
Quasi-medication is for mild complaints
Cosmetics are for hair, teeth, skin, etc. including shampoo, soap, perfume, deodorant
Supplements are vitamins and similar
Pangan olahan is food or drink that has been processed

All such items require an ‘izin edar’, or distribution permit, however there are exceptions — minimally processed food which has no additives other than salt is not required to have an izin edar.

For personal use, no izin edar is required to import, subject to limits and completion of an SAS (special access scheme) form.

The limits are specified in Appendix 4, 15/2020:

medications — only with supplied prescription
traditional medicine/health supplements — 5 small boxes per shipment
cosmetics — 20 items per shipment
processed food — 5kg per person

If these quantities are exceeded or the items are for sale, they must be destroyed.

The form is provided in the regulation

Import of medication

Medication can only be imported with doctor’s prescription. They should not be available in Indonesia, otherwise why not buy them here.

On top of this Class 1 Narcotics (CBD oil, etc., adderall), cannot be imported even with prescription (Class 2 or 3 are legal only with prescription). Class 1 Psychedelics (ketamine etc.) are illegal even with prescription, while Classes 2, 3 and 4 are legal with prescription.

Quarantine for fish, plant and animal matter

Fish and fish products must undergo fish quarantine inspection/documentation according to regulation 11/Fisheries & Seas/2019, notifying the fish quarantine office within five days of receiving notification from the courier/post, and submitting documents and the fish/fish product for quarantine when receiving the item.

Animal quarantine must also be notified.

Plant materials including seeds require a phytosanitary certificate from the country of origin.

Restricted goods

Ministry of Trade regulation 20/2021 restricts:

pearls to 50 grams per shipment
sugar to 10kg per shipment
forestry goods, steel/steel goods, tyres, cement, ceramics, glass sheets, to $1500 (per group of goods), and by air only
mobile phones, tablet computers, and handheld computers, to two items per shipment
bicycles/tricycles (except those with motors — HS Code 87.12) to two items per shipment
shoes of textile uppers (HS Code 64.04) to two items per shipment
household air con (HS Code 84.15.10) to two items per shipment
clothes to five items per shipment

Mobile phones are subject to IMEI registration, as discussed in regulation 5/2020. This should be conducted during customs inspection; there is no extra fee. The tax rate on mobile phones by post is much cheaper than when brought by passengers — only 7.5% BM plus 10% PPN = 18.25%, compared with 32% or 43% for passengers (though in that case there is a $500 tax-free allowance).

Pre-paid customs

Some companies offer pre-paid customs with no risk.

I checked Amazon.co.uk, and for items under $1500 they charge 17.5% (incorrect: it should be 18.25%).

For a laptop costing over $1500, they charged only 20%. This is based on:

0% BM (8471.30.20)
10% PPh
10% PPN

However this should be 30% if you did not have a NPWP.

For a food mixer over $1500 they charged 35.125%. This is the correct amount based on:

15% BM (85.09.40)
7.5% PPh (not doubled!)
10% PPN

I.e. 1.15 * 1.175

For a cycling jacket of less than $1500, they charged only 17.5%, which is incorrect — this should be:

25% BM (62.01.13)
60,000rp BMTP
7.5% PPh
10% PPN

i.e. 46.875% + 70,500 (including taxes on the BMTP).

For headphones from Ebay.com, they offered me the ‘Global Shipping Program’, for which the correct taxes of $53.55 grew to $60.40 for a pair of $269.95 + shipping headphones.

For spikeless golf shoes (HS Code 64.04.11.90) costing $135.37 Ebay asked for $72.53, which is 53.6%, this compares to the correct charge of 30% BM, 10% PPh (doubled without tax number), 10% PPN, which comes to at least 56%.

It can be seen that in many cases it’s cheaper to order directly from Amazon with pre-paid customs fees than to attempt shipping personally. However, they charge relatively expensive shipping, compared to companies such as Aliexpress.