Indonesian roundup: revocation of several import restrictions among latest revisions
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Indonesian roundup: revocation of several import restrictions among latest revisions

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Benjamin P Simatupang, Dwipa Abimanyu Dewantara, and Fajar Ramadhani of GNV Consulting highlight updated regulations and mandatory implementation of the Customs-Excise Information System and Automation 4.0 as Indonesia rings the changes

Passengers’ personal belongings and goods shipments by Indonesian migrant workers

Minister of Trade Regulation No. 7 of 2024 (MoTR-7/2024), which came into effect on May 6 2024, has amended Minister of Trade Regulation No. 36 of 2023 concerning Import Policy and Regulations (MoTR-36/2023). The amendment pertains to several import policies and regulations, especially for passengers’ personal belongings and goods shipment by Indonesian migrant workers.

Under MoTR-36/2023, there were restrictions on the importation of various items, categorised as follows.

  • Restrictions on passengers’ personal belongings based on MoTR-36/2023:

No.

Type of goods

Restrictions

1

Rice

5 kg per passenger

2

Sugar

5 kg per passenger

3

Iron, steel, alloy, and derivatives

No value or quantity limits

4

Mobile phones, handheld computers, tablets

Two units per passenger per year upon arrival

5

Traditional medicine and supplements

Up to $1,500

6

Cosmetics and household supplies

20 pieces per person

7

Toys

Up to $1,500

8

Bags

2 pieces per passenger

9

Textile goods and other finished goods (e.g., blankets, sheets, tablecloths, towels, wipes, curtain blinds, mosquito nets, sacks/bags, tote bags, tarps, tents, nappies/sanitary towels)

5 pieces per passenger

10

Finished clothing or clothing accessories

No value or quantity limits

11

Textiles and textile products

No value or quantity limits

12

Batik textiles and batik patterns (batik is an Indonesian dyeing technique)

No value or quantity limits

13

Alcoholic beverages

1 litre

14

Footwear

2 pairs per passenger

15

Electronics

5 units, with a total value of up to $1,500

16

Two- and three-wheeled bicycles

2 units per passenger

17

Cosmetics

20 pieces per passenger

18

Fishery products

25 kg per shipment

19

Natural medicines, quasi-drugs, and health supplements

5 pieces per passenger

20

Horticultural products

5 kg per passenger

21

Garlic

5 kg per passenger

22

Pearls

Up to $1,500

23

Corn

5 kg per passenger

  • Restrictions on goods shipments by Indonesian migrant workers based on MoTR-36/2023:

No.

Type of goods

New items limit

Used items limit

Unit

1

Finished clothing and accessories

5

15

Pieces

2

Other finished textile goods

5

5

Pieces/set

3

Electronics, excluding certain handheld devices

2

2

Number of items

4

Footwear

2

2

Pairs

5

Cosmetics and household health supplies

5

5

Pieces

6

Children's toys

4

4

Pieces/set

7

Bags

2

2

Pieces

8

Food and drinks, excluding alcoholic beverages

10

N/A

Pack/package

9

Household items

5

5

Pieces/set

10

School supplies

10

10

Pack/package/pieces


The restrictions on passengers’ personal belongings and goods shipments by Indonesian migrant workers have now been revoked, as of May 6 2024. Nevertheless, MoTR-7/2024 only revokes the import restriction policy, and other customs regulations, such as the implementation of import duty for goods with a value exceeding $500, still apply.

Mandatory implementation of Customs-Excise Information System and Automation 4.0

As a continuation of the transformation and integration of information and communications technology by the Directorate General of Customs and Excise (DGCE) through the Customs-Excise Information System and Automation (CEISA) 4.0 system, the DGCE issued Decision No. KEP-72/BC/2024 concerning Full Implementation (Mandatory) of CEISA 4.0 stage 9 on April 1 2024, which came into effect on April 2 2024.

As stipulated in KEP-72/BC/2024, there are four customs offices that will mandatorily implement CEISA 4.0, as follows:

No.

Customs office

Type of service

1.

Merak Customs Office

Bonded area (excluding BC 1.6, BC 2.8, BC 3.3, and P3BET)

2.

Surakarta Customs Office Type B

3.

Tangerang Customs Office Type A

4.

Marunda Customs Office Type A

The Convention on Mutual Administrative Assistance in Tax Matters

Based on Article 20A of the Law on General Provisions and Procedures for Taxation, the minister of finance is authorised to establish cooperation for the implementation of tax collection assistance with partner countries or partner jurisdictions. The provisions on tax collection shall be carried out based on a reciprocal international agreement.

The international agreement shall be a bilateral or multilateral agreement that regulates cooperation in matters relating to tax collection assistance, including the Convention on Mutual Administrative Assistance in Tax Matters.

In 2014, the government of Indonesia, through Presidential Regulation No. 159 (PR 159), ratified the Convention on Mutual Administrative Assistance in Tax Matters. With this presidential decree, the Indonesian tax authority can actively collect taxes on Indonesian resident taxpayers' outstanding tax debts even though the person concerned is abroad, including the whereabouts of their assets.

However, PR 159 did not accommodate arrangements in tax collection assistance based on reciprocal international agreements, and therefore needed to be amended.

PR 56 came into effect on April 22 2024 and amends PR 159 to accommodate arrangements in tax collection assistance based on reciprocal international agreements.

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