The Ministry of Trade of the Republic of Indonesia has revised the import provisions in Minister of Trade Regulation No. 36 of 2023 on Import Policies and Regulations (MoT 36/2023) as amended by Minister of Trade Regulation No. 3 of 2024. This revision covers several strategic import aspects:
A. Indonesian Migrant Workers (PMI) Shipment Goods
The revision made under Minister of Trade Regulation No. 36 of 2023 on Import Policies and Regulations is a response to the problems faced by PMI. Previously, under this regulation, PMI faced difficulties in bringing their personal belongings back from the country where they worked to Indonesia. The restrictions on the types of personal belongings based on Appendix III of Minister of Trade Regulation No. 36 of 2023 include but are not limited to:
- Ready-made Clothes and Accessories, limited to a maximum of 5 pieces for new clothes and 15 pieces for used clothes;
- Electronic Goods, excluding Cell Phones, Laptops, Tablets, and Bags, are limited to a maximum of 2 pieces for either new or used; and
- Cosmetics and Household Health Supplies are limited to a maximum of 5 pieces either new or used.
With the revision of Minister of Trade Regulation No. 36 of 2023, the policy on the limitation of shipment of goods of Indonesian migrant workers no longer applies. Therefore, the policy regarding the importation of PMI shipment of goods has now shifted to the provisions under Minister of Finance Regulation No. 141 of 2023 concerning the Provisions for the Import of Goods of Indonesian Migrant Workers (MoF 141/2023). Through Article 4 of MoF 141/2023, the policy on the limitation of imported goods for PMI based on the type of goods is revoked and replaced with import duty exemptions with the following provisions:
The limitations on imported goods for PMI registered with non-ministerial government agencies responsible for implementing policies in PMI protection services are as follows:
- Maximum of 3 (three) shipments in 1 (one) calendar year; and
- Customs value per shipment not exceeding FOB USD 500 (five hundred United States Dollars).
On the other hand, the limitations on imported goods for PMI with a verified employment contract by Indonesian Government representatives abroad are as follows:
- Maximum of 1 (one) shipment in 1 (one) calendar year; and
- Customs value not exceeding FOB USD 500 (five hundred United States Dollars).
In addition, if there is an excess value of the goods, the surplus value will be treated as Ordinary Shipment Goods (Non-PMI) and subject to an Import Duty of 7.5%. Furthermore, MoF 141/2023 also states that shipment of goods for PMI granted duty exemption are not subject to VAT and Sales Tax on Luxury Goods (PPnBM) and are exempted from Income Tax (PPh) Article 22. Moreover, this exemption is carried out without a tax-free certificate.
Read More: BPOM RI Readjusts the List of Raw Materials and Ingredients Prohibited for Processed Food
B. Imported Goods Carried by Passengers
The policy on the limitation of import goods carried by passengers through the revision of Minister of Trade Regulation No. 36 of 2023 has now been declared null and void. Therefore, the Ministry of Trade states that the provisions for Imported Goods Carried by Passengers now refer back to Minister of Finance Regulation No. 203 of 2017 concerning the Provisions for the Export and Import of Goods Carried by Passengers and Transport Crews (MoF 203/2017). Through Article 12 MoF 203/2017, the provisions for the limitations of personal goods carried by passengers are replaced with the following provisions:
- Exemption from import duties and taxes on personal goods of passengers with a customs value of up to USD 500 (five hundred United States Dollars) per person for each arrival; and
- If the customs value of imported goods carried exceeds FOB USD 500 (five hundred United States Dollars), then a tariff rate of 10% (ten percent) shall apply, calculated based on the total customs value of the imported goods minus FOB USD 500 (five hundred United States Dollars).
C. Other Import Regulations
The Ministry of Trade, based on evaluations carried out with the Ministry of Economy, conveys that in the future, there will be a new formulation of provisions regarding the shipment of goods in addition to the existing provisions, such as the obligation to obtain recommendations or technical considerations from relevant ministries and institutions as a requirement for Import Approval Requests (PI). Furthermore, the policy on Prohibitions and Limitations (Lartas) regarding each imported commodity. Currently, revisions to the provisions for the Import of Goods under MoT 36/2023 are still in process.
***
ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.
Ready to find out more?
Excellent and Trusted Consultant (ET Consultant)
PPHUI Building Lantai 2 suite 210 Jl. H.R. Rasuna Said Kav. C-22 Kuningan
Jakarta Selatan, 12940 Indonesia.
Tlp : 021 5290 7039
Email : [email protected]