Indonesia Updates Import Rules for Goods Carried by Passengers and Transportation Crews

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Authors

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Overview

The Ministry of Finance (“MoF”) has enacted Regulation No. 34 of 2025 on the Amendment to MoF Regulation No. 203/PMK.04/2017 on Provisions on Exports and Imports of Goods Carried by Passengers and Transportation Crews (“MoF Reg 34/2025”). The new regulation, effective as of 6 June 2025, introduces significant changes to the applicable rules and procedures.

The previous regulation governed the declaration, taxation, and exemptions for goods carried by passengers and crews, whether for personal use or otherwise. With the issuance of MoF Reg 34/2025, the government seeks to enhance efficiency and clarity in customs procedures, particularly in distinguishing between personal-use goods (“Personal-Use Goods”) and non-personal-use goods (“Non-Personal-Use Goods”).

Clarified Verbal Customs Declarations

Previously, the regulation required goods carried by passengers or crews to be declared either verbally or in writing. The MoF Reg 34/2025 maintains this obligation but clarifies the categories of passengers eligible to submit verbal declarations, streamlining customs clearance for qualifying travellers, which includes:

1. Individuals aged 60 (sixty) years of over;
2. Persons with disabilities;
3. Regular Hajj pilgrims who have registered to undertake pilgrimages that will take place during the relevant Hajj season in accordance with applicable laws and regulations (“Hajj Pilgrims”);
4. State guests who have been designated as Very Very Important Persons (VVIP); and
5. Passengers or transportation crews at certain specific locations, as designated by the Director-General of Customs and Excise.

Clarified Written Customs Declarations

Written customs declarations must be submitted using either:

1. Customs Declaration – applies to Personal-Use Goods that: (a) arrive with the passenger or crew, or (b) arriving separately that are recorded as “Lost and Found"; or
2. Special Import Goods Notification – applies to Non-Personal-Use Goods, or Personal-Use Goods arriving separately from the passenger or crew if listed in the transport manifest.

Such written declarations must be submitted no later than upon the arrival of the relevant passenger or transportation crew and may be provided in the form of electronic data or a written form. Further, the release of imported goods will only be granted upon approval by a Customs and Excise Officer.

Revised Import-Duty Exemptions for Personal-Use GoodsRevised Import-Duty Exemptions for Personal-Use Goods

Previously, Personal-Use Goods acquired outside Indonesian customs areas valued up to Free on Board (“FOB”) USD500 per arrival for passengers were exempt from import duty. MoF Reg 34/2025 retains this provision but expands the exemptions to cover additional categories of goods and passengers, including:

1. Regular Hajj Pilgrims;
2. Special Hajj pilgrims carrying Personal-Use Goods with maximum customs values of FOB USD2,500 per arrival (“Special Hajj Pilgrims”);
3. Competition prizes or awards in the form of medals, trophies, plaques, badges, and/or other prizes, in amounts consistent with the relevant competition or award categories.

Exemptions for competition prizes or awards only apply if:

1. The recipient is an Indonesian citizen who personally received the award;
2. The award relates to achievements in recognized fields (e.g.,sports, science, arts, culture, or religion);
3. Supporting documentation of participation is provided by relevant institutions or media; and
4. The award does not consist of motor vehicles, excisable goods, or items won through gambling/lotteries.

MoF Reg 34/2025 introduces tax exemptions for Personal-Use Goods within specified value thresholds: FOB USD 500 for passengers and FOB USD50 for crews. Goods within these limits are exempted from Value-Added Tax (“VAT”), Luxury Goods Sales Tax (“LGST”), and Income Tax. For goods exceeding the thresholds, import duties, VAT, and LGST apply, while Income Tax remains exempt.

Removal of Certain Excise Exemptions

Under the previous regulations, excisable goods such as cigarettes, cigars, tobacco, and alcoholic beverages enjoyed certain exemptions. MoF Reg 34/2025 removes these exemptions, aligning their treatment with general excise laws. Excisable goods exceeding permitted limits may still be subject to destruction under customs procedures.

Expanded Scope of Applicable Import Tariffs

While the 10% import duty continues to apply to goods exceeding the FOB thresholds, MoF Reg 34/2025 expands the scope of applicable tariffs. Such goods are now also subject to VAT and LGST, while continuing to be exempt from Income Tax. Customs-and-excise values remain calculated based on the total value of imported goods minus the relevant FOB threshold.

Transitional Provisions

To clarify the changes introduced, the table below compares the applicable import tariffs under MoF Reg 34/2025 with those under the previous regulation.

Applicable Import Tariff	MoF Reg 34/2025	Previous Regulation
Import duty determined in accordance with applicable Laws and Regulations		✓
Import-duty tariff of 10%	✓
Customs-and-excise values that are determined based on the total values of imported goods	✓	✓
VAT and LGST	✓
Income Tax of 5%		✓

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

In this article

1. General Overview
2. Maximum Limit of Economic Benefits
3. Repayment Capacity Analysis
4. Miscellaneous

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