Determination of taxes and fees on imports into Indonesia
Import duty
After determining the HS code of the goods, the importer can identify the import duty applicable to those goods. Import duty is calculated as a percentage of the customs value of the goods.
For Vietnamese goods imported into Indonesia, businesses currently have nine tariff options, each corresponding to a different rate and the conditions for enjoying that rate. The importer will rely on the specific conditions of the goods in order to choose the most appropriate and beneficial tariff option. Specifically:
- MFN duty: This is the duty rate that Indonesia applies to goods originating in WTO member countries. This rate is determined by Indonesia but must comply with Indonesia's WTO commitments, and it applies to goods from WTO members without any conditions regarding origin. Vietnam is a WTO member, and therefore Vietnamese goods are automatically entitled to this rate without having to satisfy any additional conditions.
- Duties under FTAs to which both Vietnam and Indonesia are parties:
As of the end of 2024, Vietnam and Indonesia share 8 FTAs:
(1) The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA);
(2) The ASEAN-China Free Trade Area (ACFTA);
(3) The ASEAN-India Free Trade Area (AIFTA);
(4) The ASEAN-Japan Comprehensive Economic Partnership (AJCEP);
(5) The ASEAN-Korea Free Trade Area (AKFTA);
(6) The ASEAN Trade in Goods Agreement (ATIGA);
(7) The ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA);
(8) The Regional Comprehensive Economic Partnership (RCEP).
Under each FTA's commitments, Indonesia grants special preferential tariff rates to goods from FTA member countries, provided that the imported goods satisfy the applicable rules of origin and are accompanied by proof of origin under the relevant FTA.
Businesses may look up the tariff rates applicable to specific products imported into Indonesia on the Indonesia National Trade Repository at: https://www.insw.go.id/intr
Other taxes
- Value Added Tax (VAT): Most goods imported into Indonesia are subject to an 11% VAT rate. Certain luxury goods, such as private aircraft and yachts, are subject to a higher VAT rate of 12%.
- Luxury-goods sales tax (LST): Luxury goods imported into Indonesia are subject to LST ranging from 10% to 200%, depending on the specific goods, such as luxury cars, jewelry, high-end electronics, and spirits.
- Excise tax: This applies to goods that have negative impacts on health or social order, for example alcoholic beverages and tobacco products.
Note: A product may be subject to both taxes simultaneously if it falls within both taxable categories, for example spirits or large-displacement motorcycles.
- Anti-dumping duties, countervailing duties, and safeguard duties: Certain goods imported into Indonesia may be subject to anti-dumping duties, countervailing duties, or safeguard duties if they fall within the scope of application of such measures.
Source: Center for WTO and International Trade - VCCI
