ANNOUNCEMENT 15 Feb 2018

On 15 February 2018, the Indonesian Ministry of Finance issued regulation 17/2018 reducing the import duty on diamonds, software and car parts.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Ministry of Finance regulation 17/PMK.010/2018 (in Bahasa Indonesia)
http://www.jdih.kemenkeu.go.id/fullText/2018/17~PMK.010~2018Per.pdf

Baker McKenzie post on taxing software (in English)
https://www.bakermckenzie.com/en/insight/publications/2018/03/intangible-goods-import-duty-indonesia

Inception date: 01 Mar 2018 | Removal date: open ended

Import tariff

On 15 February 2018, the Indonesian Ministry of Finance announced regulation 17/PMK.010/2018 scrapping the import duty on diamonds from the initial 5% and reducing the tariff on numerous parts of vehicles from 30 to 10%.

The regulation also contained information that the tariff on software would be 0%. However, software has been introduced for the first time in the Indonesian customs book and does not have a corresponding code number under the international HS code classification (HS9901 in the Indonesian). It has not been added as an affected product or sector, since software was previously also not subject to import duties.

The changes came into force on 1 March 2018.

AFFECTED SECTORS