Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.
To import goods into Indonesia commercially, you need an Indonesian company with a NIB (business identification number) that is registered as an importer, either API-U for trading or API-P for your own production. At the border you pay import duty set by HS code, VAT of 12% on a reduced base (11% in practice for ordinary goods), and a 2.5% income tax prepayment (PPh 22), which rises to 7.5% if you have no importer registration. Restricted goods also need an import approval, product registration or SNI certificate before they ship.
Personal imports work differently. Travellers can bring in USD 500 of personal goods free of duty, online orders under USD 3 pay no duty (but do pay VAT), and foreigners moving here to work for at least 12 months can ship household goods duty free.
All IDR to USD conversions in this guide use one rate: IDR 17,900 per USD (Katadata, 5 October 2026).
Who is allowed to import into Indonesia?
Commercial imports are reserved for registered importers. Since the OSS (Online Single Submission) licensing system replaced the old paper licences, your NIB is your importer identity. Under the Ministry of Trade’s import framework, Permendag 16/2025, which took effect on 29 August 2025 and replaced Permendag 36/2023, a NIB can serve as the API (Angka Pengenal Importir, importer identification number) (BPK legal database; PwC Indonesia).
In practice that means:
- A foreign-owned company (PT PMA) or a local company (PT PMDN) can import once its NIB carries the right business activity codes (KBLI) and importer status. If you do not have a company yet, our business setup team can structure one with import rights built in from day one. Capital rules and the set-up steps are covered in our guide to setting up a PT PMA.
- A representative office (KPPA) cannot import goods for sale. It is a liaison structure, not a trading company.
- An individual cannot run commercial imports in their own name. You can bring in personal goods, parcels and household effects under separate rules explained below.
API-U or API-P: which one do you need?
| API-U (general importer) | API-P (producer importer) | |
|---|---|---|
| Who it suits | Distributors, retailers, e-commerce sellers, trading companies | Manufacturers importing machinery, raw and auxiliary materials |
| Can you resell the goods? | Yes | Generally no. Capital goods and materials imported under API-P cannot be traded or transferred, with narrow exceptions such as new capital goods used for at least 2 years |
| Switching | API-U can be converted to API-P | Conversion to API-U is limited; an API cancelled on request cannot be reinstated |
| Typical company | PT PMA in wholesale (KBLI 46 group) | PT PMA with an industrial business licence |
Sources: PwC Indonesia Legal Alert 2025-45; Baker McKenzie, November 2025.
The most common mistake we see is a company that registered as API-P because it “might manufacture later”, then tried to sell imported stock. Goods under API-P cannot go to market, and since 5 November 2025 Permendag 37/2025 has made switching and cancelling an API stricter (Baker McKenzie). Choose the status that matches your actual business model.
What about an importer of record?
If you are a foreign brand testing the market, you can sell through an Indonesian distributor that imports in its own name, or use a licensed importer of record (IOR) that holds the NIB, API and any approvals. This is fast, but the IOR legally owns the goods at the border, holds the tax invoices and carries the import approvals. Quotas and approvals are not transferable to you later. Put a written agreement in place that covers title, liability for misdeclaration and who keeps the product registrations.
How much does it cost to import into Indonesia? The tax stack
Every commercial shipment is taxed in layers at the border. Customs collects all of them before releasing the goods.
- Import duty (Bea Masuk) is a percentage of the customs value, calculated on a CIF basis (cost, insurance and freight). Rates come from the Indonesian Customs Tariff Book (BTKI 2022) and run from 0% to 150% depending on the HS code (PwC Worldwide Tax Summaries). Lower rates apply if you hold a valid certificate of origin under a free trade agreement (ASEAN, RCEP, IA-CEPA and others).
- VAT on import (PPN Impor) has a statutory rate of 12% since 1 January 2025. For ordinary goods, PMK 131/2024 applies the 12% to a tax base of 11/12 of the import value, so the effective rate is 11%. Only goods classed as luxury pay 12% on the full value (PwC; Kontan). The import value is CIF plus import duty.
- Luxury goods sales tax (PPnBM) applies to some goods, such as motor vehicles, at rates from 10% to 95% (PwC).
- Excise (cukai) applies to alcohol and tobacco products.
- Income tax prepayment (PPh 22 Impor) is collected on the import value (CIF plus duty). It is a prepayment you later credit against your company’s annual income tax (PwC; PMK 34/2017).
PPh 22 import rates in 2026
| Situation | PPh 22 rate |
|---|---|
| Importer with API, most goods | 2.5% |
| Importer with API, soybeans, wheat and wheat flour | 0.5% |
| Importer without API | 7.5% |
| Certain consumer goods (listed tariff lines) | 10% |
| Other consumer goods on the list | 7.5% |
Source: PwC Worldwide Tax Summaries, Indonesia withholding taxes, reviewed 11 June 2026.
Worked example: what a USD 10,000 shipment really costs
Assume a PT PMA with API-U imports general merchandise with a CIF value of USD 10,000 and an HS code carrying 10% import duty. Customs actually uses the weekly Ministry of Finance exchange rate (Kurs KMK); we use IDR 17,900 per USD for simplicity.
| Line | How it is calculated | With API (IDR) | Without API (IDR) |
|---|---|---|---|
| CIF value | USD 10,000 x 17,900 | 179,000,000 | 179,000,000 |
| Import duty | 10% of CIF | 17,900,000 | 17,900,000 |
| Import value | CIF + duty | 196,900,000 | 196,900,000 |
| VAT | 12% x 11/12 of import value (11% effective) | 21,659,000 | 21,659,000 |
| PPh 22 | 2.5% or 7.5% of import value | 4,922,500 | 14,767,500 |
| Total paid at the border | duty + VAT + PPh 22 | 44,481,500 (about USD 2,485) | 54,326,500 (about USD 3,035) |
Two points change how you should read this table:
- Not all of it is a cost. If your company is VAT registered (PKP), the import VAT is input tax you credit against output VAT on your sales. PPh 22 is a prepayment of corporate income tax. Your true cost is the duty, plus the cash tied up until you recover the rest. Our guide to company taxation in Indonesia explains the crediting, and our VAT and NPWP registration service gets you PKP status before the first shipment.
- Importing without API costs you an extra IDR 9,845,000 (about USD 550) in prepaid tax on this one shipment. You may get it back at year end, but only if your tax filings are clean.
Which goods are restricted (Lartas), and what approvals do you need?
Indonesia controls many HS codes through Lartas (larangan dan pembatasan, prohibitions and restrictions). If your HS code is on the list, you need the relevant approval before the goods leave the port of origin, or customs will hold them. The main tools are:
- Import approval (PI, Persetujuan Impor) from the Ministry of Trade, applied for through INATRADE and the national single window. Permendag 16/2025 is the umbrella rule, and eight sectoral regulations (Permendag 17/2025 to 24/2025) cover textiles, agricultural and livestock goods, salt and fishery goods, chemicals and hazardous materials, electronics, certain industrial goods, consumer goods, and used goods (Bisnis).
- Neraca Komoditas (commodity balance). For commodities such as salt, fishery products, beef, rice and sugar, the government sets a national supply and demand balance each year, and import approvals are issued against it. Proposals are submitted in September of the previous year and the balance is set in December (Ministry of Trade presentation via JETRO). If you import a balance commodity, plan your volumes a year ahead.
- Surveyor report (LS, Laporan Surveyor) for some goods, issued by an appointed inspection company before shipment.
- Technical recommendations from the relevant ministry, for example the Ministry of Industry for apparel and some industrial goods.
Some goods are checked at the border; others are checked after release (post-border). Since 5 November 2025, goods imported as part of an investment project are no longer automatically exempt from these restrictions (Baker McKenzie). Check your HS code on the INSW portal before you sign a purchase order.
Separately, some goods are banned outright, including narcotics, weapons without a permit, pornographic material and many categories of used goods such as used clothing.
Product rules: BPOM, SNI and halal
Clearing customs is not the same as being allowed to sell.
- Food, drinks, cosmetics, supplements and medicines need registration with BPOM, the food and drug authority, before they can be sold. This often takes longer than setting up the company. See our guide to product registration with BPOM.
- SNI (Indonesian National Standard) is mandatory for a list of products, including steel products, tyres, ceramics, glass, toys and many electrical goods. You need the SNI product certificate before import, and some sectors are limited to designated ports with extra post-border checks under Permendag 22/2025 (DFDL).
- Halal certification is required under Law 33/2014 and PP 42/2024 for food, drinks and a widening range of consumer goods. For products made abroad, the phase-in deadline is 17 October 2026. Foreign halal certificates count only if the issuing body is recognised by BPJPH, the halal agency, and the certificate is registered in Indonesia.
How does customs clearance work?
All import declarations are electronic.
- INSW (Indonesia National Single Window) is the government portal where permits from different ministries meet customs data. Import approvals are processed through it and passed to INATRADE (JETRO).
- CEISA is the customs system of the Directorate General of Customs and Excise (DJBC, Bea Cukai). Your import declaration, the PIB (Pemberitahuan Impor Barang, document BC 2.0), is filed into it.
- Payment of duty, VAT and PPh 22 is made with a billing code before release.
- Risk channels. Customs assigns each declaration a lane. Green means document check only, while red means physical inspection. New importers and goods with a history of misdeclaration land in red more often.
Do you need a customs broker (PPJK)?
Most importers use a PPJK (Pengusaha Pengurusan Jasa Kepabeanan), a licensed customs broker. A PPJK must hold its own customs registration and employ certified customs experts (Bea Cukai Tanjung Emas). The broker files the PIB on your behalf, but you remain liable for the HS code and the declared value. Ask your broker which HS code they intend to use before the goods ship, and keep their classification reasoning on file.
Step by step: your first commercial import
- Confirm the HS code and check Lartas, SNI, BPOM and halal requirements for that code.
- Make sure your NIB carries the right KBLI and API status, and that the company is VAT registered if you sell to businesses.
- Apply for any import approval, surveyor report or technical recommendation.
- Agree Incoterms with your supplier and request a certificate of origin if an FTA rate applies.
- Appoint a PPJK and send them the shipping documents before the vessel or flight arrives.
- Pay duty and taxes, clear the goods, then complete product registration or labelling before sale.
- File import realisation reports where your approval requires it. Under Permendag 16/2025 they are due by the 15th of each month (PwC Indonesia).
Document checklist for a commercial import
| Document | Who provides it | When it is needed |
|---|---|---|
| NIB with API-U or API-P status | Your company, via OSS | Before the first shipment |
| NPWP (tax ID) and PKP status | Your company, via the tax office | Before the first shipment |
| Commercial invoice | Supplier | At clearance |
| Packing list | Supplier | At clearance |
| Bill of lading or air waybill | Carrier or forwarder | At clearance |
| Insurance certificate | Supplier or insurer | At clearance (CIF value) |
| Certificate of origin (Form D, E, RCEP and others) | Supplier’s chamber or authority | At clearance, to claim an FTA rate |
| Import approval (PI), surveyor report (LS) or technical recommendation | Ministry of Trade, surveyor, sector ministry | Before shipment, for Lartas goods |
| SNI certificate, BPOM number, halal certificate | Certification body, BPOM, BPJPH | Before import or before sale, by product |
| PIB (BC 2.0) and payment proof | Your PPJK | At clearance |
Personal imports: travellers, parcels and household goods
Many of our clients first meet Indonesian customs as individuals, not as companies. The rules below are separate from the commercial regime.
| Situation | Duty-free allowance | What you pay above it | Rule |
|---|---|---|---|
| Passenger personal goods | FOB USD 500 per passenger, per arrival | 10% duty on the excess, plus VAT; PPh 22 no longer collected on personal goods | PMK 203/2017 as amended by PMK 34/2025, in force 6 June 2025 |
| Online orders and courier parcels | FOB USD 3 per consignment (VAT still due) | 7.5% duty from USD 3 to USD 1,500, or fixed rates for some goods, plus VAT | PMK 96/2023 as amended by PMK 4/2025, in force 5 March 2025 |
| Household goods when you move here | No value cap if conditions are met | Duty exempt; taxes follow the tax rules | PMK 25/2025, in force 27 June 2025 |
Sources: IKPI on PMK 34/2025; BPK legal database, PMK 34/2025; IKPI on PMK 4/2025; DJP on PMK 4/2025; Republika on PMK 25/2025.
Travellers and hand carry
- USD 500 per person. Personal goods above that pay 10% duty on the excess plus VAT. Goods that are clearly not personal (stock, samples in quantity) pay 10% duty, VAT and 5% PPh (IKPI).
- Alcohol and tobacco. Up to 1 litre of alcoholic drinks and 200 cigarettes, 25 cigars or 100 grams of tobacco per adult. The excess is destroyed (Bisnis).
- Phones, laptops and tablets bought abroad for long-term use here must be declared so the IMEI can be registered. If you skip this, the device will not work with an Indonesian SIM card.
- Customs declaration (e-CD). File it on the All Indonesia portal, up to 3 days before arrival (Bisnis).
- Medicines, supplements and cosmetics are allowed in reasonable personal quantities, not for resale.
Bringing a suitcase of products to “test the market” is the classic trap. Customs treats it as a commercial import without an API, and you pay duty, VAT and PPh at once, with the goods held until you do.
Online orders and courier parcels
For e-commerce and courier shipments (barang kiriman), the import duty threshold is FOB USD 3. Below it there is no duty, but VAT still applies. From USD 3 to USD 1,500, duty is a flat 7.5%, except for certain goods with fixed rates: 0% for books, 15% for cosmetics, iron and steel products and watches, and 25% for bags, textiles, footwear and bicycles (IKPI). Above USD 1,500, customs assesses the shipment under the normal import rules (DJP). PPh 22 is generally not collected on consignments in the USD 3 to USD 1,500 band.
Restricted goods stay restricted in a parcel. Food, supplements and cosmetics sent from abroad can be held if they need BPOM clearance.
Moving household goods with a KITAS
Under PMK 25/2025, which replaced PMK 28/2008 and took effect on 27 June 2025, foreigners who come to live and work in Indonesia for at least 12 months can import used household goods free of import duty (Republika; iNews). The conditions:
- You hold a work visa and a limited stay permit (ITAS, the permit behind your KITAS card), plus your approved foreign worker plan. See our working KITAS service.
- The goods arrive with you, or within 90 days before or after your arrival.
- The goods are for household use by you and your family, in reasonable quantities. Ten fridges will not pass.
- Cars, motorcycles, boats and their spare parts are excluded, as are excisable goods such as wine collections.
- The declaration (PIBK) is filed electronically with a copy of your passport, proof of the stay requirement and an itemised list.
Import duty is waived, but taxes follow the tax rules. Ship only after your KITAS is issued, because the 90-day window is strict.
What goes wrong, and how to avoid it
- Wrong HS code. Duty, Lartas status and PPh 22 all follow the HS code. Underpaying because of a wrong code leads to back duty plus administrative fines, and a red-lane history for future shipments.
- Goods arriving before the approval. If a PI or LS is required and missing, the goods sit in port accruing storage charges, and may have to be re-exported.
- Undervalued invoices. Customs compares your declared value against its own database. An invoice that looks too cheap triggers a value review and delays.
- Selling before registration. Cleared stock without a BPOM number, SNI mark or Indonesian label cannot legally be sold.
- Using the wrong structure. A PT PMA that holds API-P, or a company without import KBLI codes, cannot run a distribution business. Fix the structure before the first purchase order.
ILA works with foreign founders to set up the company, the NIB and API status, tax registration and the work permits around an import business. If you want your structure and first shipment checked before money leaves your account, contact our team.
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Frequently asked questions
Can a foreigner import goods into Indonesia without a company?
Not commercially. Commercial imports need a NIB registered as an importer, which only an Indonesian legal entity such as a PT PMA can hold. As an individual you can bring in personal goods, parcels and household effects, or work through a licensed importer of record.
Is VAT on imports 11% or 12% in 2026?
The statutory rate is 12%. For ordinary goods it is applied to 11/12 of the import value, so you pay an effective 11%. Luxury goods pay 12% on the full value.
What is the PPh 22 import rate?
2.5% of the import value if your company has an API, 7.5% without one, and up to 10% on certain consumer goods. It is a prepayment you credit against annual corporate income tax.
How much can I bring into Indonesia duty free?
USD 500 FOB per passenger per arrival. Above that you pay 10% duty on the excess plus VAT. Alcohol is limited to 1 litre and cigarettes to 200 per adult.
Do I pay customs on online orders shipped to Indonesia?
Orders under USD 3 FOB pay no import duty but do pay VAT. From USD 3 to USD 1,500 the duty is usually 7.5%, with fixed rates of up to 25% for bags, textiles, footwear and bicycles.
Can I ship my furniture duty free when I move to Bali on a KITAS?
Yes, if you will live and work in Indonesia for at least 12 months, the goods are used household items for your family, and they arrive within 90 days of you. Vehicles are excluded.
Do I need a customs broker?
Not by law in every case, but almost every importer uses a licensed PPJK to file the PIB in the customs system. You stay liable for the HS code and value they declare.
How long does an import approval take?
The Ministry of Trade has stated a service level of 5 working days for import approvals filed through the national single window, once the application is complete (JETRO). Commodities under the commodity balance depend on the annual allocation, so start early.
Sources
- PwC Worldwide Tax Summaries: Indonesia, other taxes (VAT, customs duty, luxury tax)
- PwC Worldwide Tax Summaries: Indonesia, withholding taxes (PPh 22 import)
- PwC Indonesia Legal Alert 2025-45: Permendag 16/2025
- BPK legal database: Permendag 16/2025 on import policy
- Baker McKenzie: Indonesia’s new import framework (Permendag 37/2025), November 2025
- DFDL: Indonesia new import regulations, Permendag 16/2025 and 22/2025
- Bisnis: Permendag 8/2024 revoked, the nine replacement regulations
- Ministry of Trade presentation on Neraca Komoditas and import approvals (JETRO)
- JDIH Ministry of Finance: PMK 34/PMK.010/2017 on PPh 22 import
- Kontan: PPN 12% applies only to luxury goods (PMK 131/2024)
- Directorate General of Taxes: changes to consignment taxation in PMK 4/2025
- IKPI: new import duty rates for consignments under PMK 4/2025
- BPK legal database: PMK 34/2025 on passenger goods
- IKPI: passenger goods rules relaxed from 6 June 2025
- Bisnis: passenger goods above USD 500 pay import duty (2 January 2026)
- Republika: PMK 25/2025 on household goods takes effect
- iNews: PMK 25/2025 in force, customs clarifies household goods imports
- DJBC regulation directory: PMK 25/2025 on household goods imports
- Bea Cukai Tanjung Emas: customs registration FAQ (importers and PPJK)
- Indonesia National Single Window (INSW)
- All Indonesia arrival and customs declaration portal
- Katadata: rupiah at IDR 17,916 per USD, 5 October 2026
