Trade Ministry reexamines lowering limit of e-commerce import tax

We will definitely lower the nominal limit, but the nominal is yet being discussed

Jakarta (ANTARA) – The Ministry of Trade is presently reevaluating the lowering limit of import tax for commodities bought through e-commerce transactions that is now in force only for products valued at US$75 or higher.

“We will definitely lower the nominal limit, but the nominal is yet being discussed,” Trade Minister Agus Suparmanto informed the press after conducting a check of the illegal import products at his office in Jakarta, Wednesday.

While steering clear from citing the exact nominal, Suparmanto noted that it could possibly be zero. Simply stated, an import tariff will be applied on every e-commerce product shipped abroad.

Suparmanto emphasized that the tariff is targeted to be imposed from early next year, albeit a final discussion yet to be held.

Article 13 of the current Finance Minister’s Regulation Number 112/PMK.04/2018 stipulated that products under US$75 are duty-free. However, e-commerce transaction products that enter Indonesia are mostly below that nominal limit.

According to Article 20, an import tariff of 7.5 percent is applied for products priced over the limit.

Statistics Indonesia recorded import value in November 2019 to have reached US$15.34 billion, or rose 3.94 percent from that in October 2019, yet decreased 9.24 percent during the same period last year.

Source: ANTARA News