New Regulation Reduces Import Tariffs on Books, Steel, Bicycles, and More
Jakarta. The Directorate General of Customs and Excise (DJBC) has simplified import duties on eight goods, including books, steel, textiles, and bicycles, reducing the Most Favored Nation (MFN) tariff structure to three categories: 0 percent, 15 percent, and 25 percent.
The policy, set under Finance Minister Regulation (PMK) No. 4/2025, will take effect on March 5. While these commodities will no longer be subject to additional import duties, they will still be liable for value-added tax (VAT) in accordance with existing regulations.
“There are eight commodity groups that previously followed MFN tariffs. With PMK 4/2025, we are streamlining them into just three tariff rates,” said Chotibul Umam, Head of the Import Sub-Directorate at DJBC, during a press conference on Tuesday.
The MFN principle, a cornerstone of multilateral trade, ensures equal treatment of all trade partners.
Under the new regulation, the three tariff categories are as follows:
- 0 percent tariff: Scientific books, which remain duty-free as in previous regulations. Additionally, they are exempt from VAT and income tax.
- 15 percent tariff: Wristwatches, cosmetics, and iron/steel, which previously had tariffs ranging from 0 percent to 20 percent.
- 25 percent tariff: Bags, textiles, footwear, and bicycles, down from previous rates of 5 percent to 40 percent. Off-road bicycles, which were previously subject to a 40 percent duty, will now fall under the 25 percent rate, while children's bicycles will have a lower tariff.
"This simplification makes it easier for importers to calculate duties, compared to the previous complex system," Umam added.
The regulation also aligns with other trade policies, including Trade Minister Regulation No. 8/2024, which governs import restrictions. Additionally, it provides fiscal incentives for Hajj pilgrims, tax exemptions for Indonesian nationals receiving international awards, and enhanced export support through a new shipping consolidation scheme for eligible companies.
Tags: Keywords:Related Articles
Indonesia Waives Import Duties on Plastic Raw Materials for Six Months
Indonesia cuts import duties on selected plastic raw materials to 0% for six months as global prices surge.Indonesia Targets Rp 1.7 Trillion From Sweetened Drink Tax in 2027
Indonesia targets Rp 1.7 trillion from a 2027 sugary-drink tax as diabetes cases reach 20.4 million nationwide.Indonesia Customs Foil Two Attempts to Smuggle $3.5 Million of Gold Overseas
Indonesia Customs seize 23.8 kg of gold worth $3.5 million in two suspected smuggling attempts at Jakarta's main airport.Indonesia Investigates Three Firms Over Illegal Harley-Davidson Imports
Indonesia is investigating the illegal import of five Harley-Davidson motorcycles and 20 frames seized at Tanjung Priok Port.Indonesia Seizes 25 Harley-Davidson Bikes, Frames From China
Indonesia customs officers seized 25 Harley-Davidsons from a China shipment after finding discrepancies in import documents.Drug Ring Exploited Airline Crew Loophole to Sneak 70,000 Ecstasy Pills Into Jakarta
A Malaysian pilot was arrested after customs officers found 70,114 ecstasy pills in his crew-tagged luggage at Jakarta airport.Indonesia Makes Tokopedia, Shopee Tax Collectors for Online Sellers
Indonesia appointed four e-commerce platforms to collect sellers' income tax, aiming to improve compliance and boost revenue.KPK Charges Blueray Cargo Boss Over Rp 61B Customs Bribes
Indonesian prosecutors charge Blueray Cargo owner in Rp 61B bribery scheme to bypass customs checks.The Latest
Ye Concert, Other Events to Draw 130,000 to GBK, Here’s What to Know
Around 130,000 visitors are expected at Jakarta’s GBK on Saturday as Ye’s concert and several major events take place.Indonesia Allocates Rp 722 Billion for Year-End Flight Ticket Tax Relief
Indonesia allocates Rp 722 billion to cover domestic flight ticket VAT during the 2026/2027 Christmas and New Year holidays.Greece Floats Shipbuilding Partnership with Indonesia
Greece says that it possesses “extensive expertise” as it woos Indonesia in shipbuilding partnership.Indonesian Stocks Rally 4.9%, but Foreign Investors Keep Selling
Indonesia’s JCI rose 4.9% last week, but foreign selling and MSCI downgrade risks continue to cloud the market outlook.Ye Concert in Jakarta to Deploy 2,000 Security Personnel
More than 2,000 personnel will secure Ye’s Jakarta concert on Saturday, as organizers urge fans to use public transport.Most Popular
