ANNOUNCEMENT 11 Jun 2015

In June 2015, the government of Indonesia announced a change in import duties.

NUMBER OF INTERVENTIONS

3

  • 2 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Ministry of Finance regulation 107/PMK.10/2015 (in Bahasa Indonesia):
http://www.jdih.kemenkeu.go.id/fullText/2015/107~PMK.010~2015Per.pdf

Press release by the Ministry of Finance (in Bahasa Indonesia):
http://www.kemenkeu.go.id/Berita/tekan-arus-impor-pph-pasal-22-impor-naik-25-persen

Further press release on the luxury sales tax (in Bahasa Indonesia):
http://www.kemenkeu.go.id/Berita/menkeu-barang-super-mewah-tetap-dinekai-ppn-bm

Secondary Source:
http://thejakartaglobe.beritasatu.com/business/indonesia-removes-luxury-tax-goods/


Amendment regulation 16/PMK.010/2016 (in Bahasa Indonesia) - without substantial changes
http://www.jdih.kemenkeu.go.id/#/home

Inception date: 08 Aug 2015 | Removal date: open ended
Still in force

Internal taxation of imports

On 11 June 2015, the Indonesian Minister of Finance, Bambang Brodjonegoro, announced an increase of the "PPh22" income tax on imported luxury products from 7.5% to 10%. The hike was introduced in order to counterbalance the removal of the country's luxury sales tax for a large number of goods.

Overall, the income tax on imported goods of 16 products was increased from 2.5 to 7.5%, for 128 products from 2.5 to 10%, and for 111 products from 7.5% to 10%.

Brodjonegoro argued that since the luxury sales tax was also being scrapped on the imported goods, the tariffs had to be raised because "we don't want that when we remove the luxury sales tax, people instead 'choose to buy' imports". In the same statement, he stressed: "the goal is to reduce imports on the goods previously covered by this scrapped luxury sales tax" (own translation).

The regulation came into force on 8 August 2015.

The list of affected tariff lines is based on the appendix of the regulation.

Inception date: 08 Aug 2015 | Removal date: open ended
Still in force

Internal taxation of imports

Regulation 107/PMK.010/2015 by the Ministry of Finance also introduces a tax exemption for imported goods to be used in the geothermal sector.

The regulation came into force on 8 August 2015.

 
N/A
Inception date: 08 Aug 2015 | Removal date: open ended
Still in force

Export tax

Regulation 107/PMK.010/2015 also introduces the "PPh22" income tax of 1.5% on certain exports of coal, metallic and non-metallic minerals listed in appendix III of the regulation. Entities in mining business cooperation agreements and with Contracts of Work will be exempt from the tax (art.2(1)a.2).

The regulation came into force on 8 August 2015.

The list of affected tariff lines is based on the appendix of the regulation.