Population | 278.8 million (2022) |
GDP | $1.19 trillion USD (2021) |
GDP per capita | $4,356 USD (2021) |
Internet penetration | 70% of the population use the internet (2021) |
Ecommerce users | 64% of the population shop online (2022) |
Leading product categories | Fashion, electronics and media, and personal care |
Preferred online payment method(s) | Credit and debit cards, PayPal, and mobile wallets |
Languages | Indonesian, Japanese, English, and Sundanese |
Currency | Indonesian Rupiah/IDR/Rp |
The landed cost for a cross-border transaction includes all duties, taxes, and fees associated with the purchase. This includes:
CIF: CIF (cost, insurance, freight) is a method for calculating import taxes or duties where the tax is calculated on the cost of the order plus the cost of freight, and insurance.
Further explanation of de minimis, tax, and duty provided below
Applied to the CIF value of the order
Duty and tax will be charged only on imports into Indonesia where the total CIF value of the import exceeds Indonesia’s minimum value threshold (de minimis), which is 43,600 IDR for duty and 0 IDR for tax. All imports are subject to tax since the de minimis is zero, but anything under the duty de minimis value will be considered a duty-free import.
Applied to the CIF value of the order
The standard VAT rate for Indonesian imports is 11%.
VAT on electronic products and services: If your business' sales in digital/electronic services exceed 600 million IDR and you generate traffic (website visits) from at least 12,000 users in Indonesia annually, then you may be appointed by the Director-General of Tax as a VAT collector and receive a tax ID number. If this is the case, you must collect and remit VAT quarterly for all sales based on the country’s requirements.
Income tax: The income tax rate (known as PPh) in Indonesia is 7.5% and 10% depending on the product. If an Indonesian Import Identification number (known as API) or tax ID number is provided with the import, then income tax rates will typically be 7.5%. If neither of these is provided, the income tax rate will be 15%.
Though the term “income tax” usually refers to a tax the government charges on its residents' personal income, in Indonesia, it is also a kind of import tax.
Applied to the CIF value of the order
The standard duty rate for imports is 7.5%. Certain product categories have their own duty rates, such as the following:
Imports valued higher than 1,500 USD are subject to duty rates that vary based on the product and can be as high as 30%. These high-value imports are also subject to formal clearance, whih requires an additional 3-5 days.
Below are sample landed cost breakdowns for Indonesia calculated using Zonos Quoter. Since there is no tax de minimis, tax will always apply:
Landed cost for a shipment to Indonesia below the duty de minimis value:
Landed cost for a shipment to Indonesia above the duty and tax de minimis value:
Indonesia has at least 15 trade agreements that offer a zero or highly discounted duty rate for goods manufactured in participating countries.
Indonesia is a member of the World Trade Organization
As a member of the World Trade Organization (WTO), Indonesia must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.
Customs refunds in Indonesia (Scroll to page 63)
Talk to your carrier about customs refunds.
Depending on the courier, additional shipping fees may include:
Always needed
Pro-forma invoice
Packing list
Proof of transaction
Recipient’s local tax ID number or another national identification number
Sometimes needed
Import licenses based on the product’s Harmonized System (HS) code
For example: Tricycles, scooters, pedal cars, similar wheeled toys, and dolls' carriages require the following:
Supporting documents when customs flags an import as suspicious
Certificate of origin
Health certificate from the Food and Drug Agency
Doctor prescription
Government agencies regulate imports.
Restricted items are different from prohibited items. Prohibited items are not allowed to be imported into a country at all. Restricted items are not allowed to be imported into a country unless the importer has approval or a special license. Controlled goods have military or national security significance.
Prohibited items:
Restricted items:
Limited quantity
There are certain goods on which Indonesian Customs imposes a quantity-per-shipment limit. Here are a few examples:
Laptops - Two pieces per shipment
Clothing - Five pieces per shipment
Footwear - Two pairs per shipment
Toys - Three pieces per shipment
Traditional medicine, supplements, and vitamins - Five small bottles, strips, sachets, or tubes per shipment
Cosmetics - 20 pieces per shipment
Recipient import license
Certain products entering Indonesia require an import license. The recipient in Indonesia must apply for an import license in order to import the following items:
Is Indonesia’s income tax different from import tax and duty?
In Indonesia, a 10% income tax applies to taxable imported goods in addition to the value-added tax and import duty.
Does Indonesia’s tax registration requirement for foreign sellers apply to both physical and digital goods?
No, Indonesia’s non-resident tax registration requirement only applies to digital or electronic goods and services.
A cross-border guide to Indonesian ecommerce, shipping, and importing goods
If you are looking to grow your ecommerce business into Indonesia
, you’ve come to the right place. In our guide, created by Zonos' cross-border experts, you will find the following: