How to calculate import tax in Indonesia with selected HS Code (example and simulation)
In order to send and receive goods to Indonesia, we must comply with all applicable Indonesian government regulations. One of the requirements is the payment of taxes, and the amount of this import tax depends on the nature and type of goods shipped according to the HS code. And here are examples and simulations of tax calculations that apply in Indonesia.
Average import taxes and customs duty in Indonesia
There are 3 tax variables that importers in Indonesia need to know. And the tax value depends on the hs code of each product with PIB (Pemberitahuan Impor Barang) information. And here are 3 types of taxes you need to know.
|Tax / name in Indonesia||Tax rate|
|Import Duty / BM||Vary from 0-450%, depending on the HS Code of the goods|
|Value Added Tax (VAT) / PPn||10%|
|Income Tax / PPh||0 or higher for specific product|
There are several types of products that cause a significant increase in taxes, including luxury goods, alcoholic beverages, smoke, and vehicles with large CC, for example
- Alcohol beverages (5%-20%)
- Luxury and large CC cars (150% – 200%)
- Luxury motorcycles (60%-125%)
- Branded shoes (40%)
- Yachts (75%)
Note that the tax calculation system in Indonesia is quite complicated. Therefore, it is wise to seek advice from local consultants before you import your products to Indonesia to prevent any unpleasant and costly surprises from arising.
Contact our import consultants at firstname.lastname@example.org for a personal consultation to find out which import taxes apply to your products.
Documents required to import goods into Indonesia
There are some cases that require more documents and legal requirements, depending on the hs code of your item, also to comply with postal limits and product restrictions, but in general you only need the following documents to send goods to Indonesia.
- Packing list (see What is Packing List?)
- HS codes of the products
- Airway bill / bill of landing
- Insurance police
- Receipt of payment of import duty and import-related taxes (SSPCP)
- Power of Attorney if submitted by Customs Broker
Procedure lane for customs clearance in Indonesia
Once the goods have arrived at the Indonesian customs zone, the customs officials will place your products in one of the three different customs areas:
|Green lane||Yellow lane||Red lane|
|Without any inspection||Some additional documents are required||Inspection is needed|
|1 Day||2-3 Day||> 7 day or may require re-import|
Some common reasons why goods in the red channel get stuck in Indonesian customs are:
- Incomplete documents
- Document does not match the product
- Price quoted does not match the product (under value)
- High-risk assets or originating from high-risk countries
- Red channel inspection (conducted on a random basis)
To prevent your goods from getting stuck in the red channel, you can import your products to Indonesia through Kickrate’s Importer of Record (IOR) service.
This way, you don’t have to obtain import licenses in Indonesia or worry about customs clearance, as Kickrate will take care of everything on your behalf.
However, if your products are already stuck in Indonesian customs, Kickrate can help you find a solution. We work with customs on a daily basis and have a 100% success rate in clearing goods through Indonesian customs.
Contact us at email@example.com
How to calculate tax and cost of import in Indonesia?
The calculation formula for total import tax and duty:
Import Duty + VAT + Income Tax where:
|Tax name||Calculation method|
|Import Duty / BM||Total value x percentage of import duty|
|VAT / PPn||(Total value + Import Duty) x 10%|
|Income Tax / PPh||(Total value + Import Duty) x percentage of Income Tax|
It can be a little complicated because you first need to know the HS code and search it to get the exact import duty for each tax, but you don’t have to worry, we have a simple calculator and simulation for your goods, just search the HS code with your product description, fill in the quantity and price for each good, and you have your import tax simulation