Addin Anugrah Siwi, Jakarta – The Indonesian government has introduced new import rules granting duty-free allowances for personal goods worth up to $500, up to $2,500 for special Hajj pilgrims, and full exemptions for international competition prizes and awards.
The new rule, Finance Ministerial Regulation (PMK) No. 34 of 2025, partially replaces the provisions of PMK 203/PMK.04/2017 on export and import regulations for passengers and crew members.
Signed into law on May 28, 2025, the regulation will take effect on June 6.
According to Nirwala Dwi Heryanto, spokesperson at the Customs and Excise Directorate General, the updated rule aims to enhance legal certainty and simplify customs procedures.
"This regulation responds to public needs and provides legal clarity in customs processes related to passengers' belongings," Nirwala said in a written statement on Wednesday.
One of the key updates is the reaffirmation of a duty-free allowance for personal items valued at up to $500 on a Free on Board (FOB) basis. These goods will be exempt from import duty, value-added tax (VAT), luxury goods tax (PPnBM), and income tax under Article 22.
For personal items exceeding the $500 threshold, the excess value will be subject to a 10 percent import duty and 12 percent VAT, but remains exempt from income tax.
Stricter rules apply to non-personal goods, which are now subject to a 10 percent import duty, 12 percent VAT, and an additional 5 percent income tax under Article 22. This replaces the previous tariff scheme based on the most-favored nation (MFN) rate.
The new rule also introduces new fiscal exemptions, including duty-free status for goods brought by Hajj pilgrims. Regular pilgrims will receive full exemptions, while special pilgrims will be granted an exemption of up to $2,500 per arrival. Special pilgrims refer to individuals who perform the Hajj pilgrimage through private travel agencies, rather than through the government-run regular Hajj program.
Additionally, the regulation covers goods received as prizes or international awards. These items will be exempt from import duties, VAT, and PPnBM, provided the recipient is an Indonesian citizen and can present proof of participation in the international event.
The regulation also introduces new provisions regarding customs declarations, retroactive duties on goods imported before the rule's enactment, and the application of income tax Article 22 on such items.