Adjustments to import classifications and tariffs headline Indonesian tax and customs updates

On August 27 2025, the Indonesian Ministry of Finance issued Regulation No. 62/2025 (PMK 62/2025), which amends Regulation No. 26/PMK.010/2022 and adjusts the provisions on imported goods classifications and import duty tariffs. The regulation introduces changes in the goods classification system, impacting Harmonized System code determination, accompanied by adjustments to import duty tariffs on certain product categories. These changes are intended to ensure compliance with international rules, thereby reducing potential trade disputes.

The key changes introduced in this regulation include:

• The importation of battery-based electric motor vehicles under the battery electric vehicle programme for road transportation is subject to an import duty rate of 0%; and

• The import duty rates for electric motor vehicles shall apply until December 31 2025.

PMK 62/2025 became effective on September 14 2025.

The Directorate General of Taxes (DGT) issued Regulation No. PER-18/PJ/2025 on September 24 2025 concerning the follow-up on concrete taxpayer data. It also builds on Minister of Finance Regulation No. 15 of 2025 on tax audits.

The types of concrete data include the following:

• Tax invoices that have been approved through the DGT’s information system but have not been reported by the taxpayer in the VAT return.

• Withholding/collection tax slips that have not been reported by the issuer in the withholding tax return.

• Transaction evidence or tax data that is categorised as concrete data is as follows:

  • Excess compensation on a VAT return that is not supported with the excess payment on the previous VAT return;

  • The recalculation of input VAT as a deduction from output VAT by taxpayers who are not entitled to use the input tax credit guidelines;

  • VAT paid in advance or underpaid;

  • The utilisation of tax incentives that do not comply with the regulations;

  • Input tax credit that does not comply with the regulations;

  • Income that is not reported based on the withholding tax slip;

  • Data or information sourced from a stipulation, tax decision, or ruling on a dispute over legislation in the field of taxation; and

  • Data or information that has been published in a letter of request for explanation (SP2DK) and the SP2DK has been approved for follow-up by the taxpayer, but the data or information has not been provided by the deadline.

In accordance with Minister of Finance Regulation No. 15 of 2025, there are two follow-up options that the DGT may apply with regard to concrete data:

• Supervision; or

• A specific tax audit.

The DGT issued Regulation No. PER-15/PJ/2025 on August 5 2025 in response to the rapid growth of trade through electronic systems. The regulation stipulates the criteria and mechanisms for appointing third parties, particularly digital platform providers or marketplaces, to collect, deposit, and report income tax on transactions conducted by domestic merchants that are subject to Article 22 withholding tax.

The specific criteria for an electronic trading system operator to be designated as a tax collector are that it uses an escrow account to hold income and meets the following limits:

• The total value of transactions with service users in Indonesia exceeds IDR 600 million within 12 months or IDR 50 million within one month; and

• The total amount of traffic/access in Indonesia exceeds 12,000 within 12 months or 1,000 within one month.

On August 26 2025, the Directorate General of Customs and Excise issued a new regulation, No. PER-9/BC/2025, which amends PER-22/BC/2023 concerning Procedures for the Entry and Exit of Goods in Free Trade Zones and Free Ports.

Through PER-9/BC/2025, the government introduces adjustments regarding passenger and crew belongings, streamlines export–import procedures, and strengthens legal certainty for transactions within free trade zones.

As a result, businesses operating in free trade zones are required to align their standard operating procedures with the new export–import requirements. Passengers and crew members must also be aware of the rules concerning carried goods to avoid customs sanctions. Overall, this regulation aims to facilitate business operations while enhancing control and supervision in customs practices.