Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.
Indonesia’s average Most-Favored-Nation (MFN) applied tariff rate was 8.1 percent in 2019 (latest data available). Indonesia’s average MFN applied tariff rate was 8.7 percent for agricultural products and 8.0 percent for non-agricultural products in 2019 (latest data available). Indonesia has bound 96.3 percent of its tariff lines in the World Trade Organization (WTO), with an average WTO-bound tariff rate of 37.1 percent.
Over the last decade, Indonesia has increased its applied tariff rates for a range of goods that compete with locally manufactured products, including electronic products, milling machines, chemicals, cosmetics, medicines, wine and spirits, iron wire and wire nails, and a range of agricultural products. Most Indonesian tariffs on non-agricultural goods are bound at 35.5 percent, although tariff rates exceed 35.5 percent or remain unbound on automobiles, iron, steel, and some chemical products. In the agricultural sector, tariffs on more than 1,300 products have bindings at or above 35.5 percent.
In 2020, Indonesia issued Minister of Finance (MOF) Regulation 199/2019 to lower the price threshold for import duty exemptions on imported consumer goods (known as “consignment goods”) from $75 to $3. Certain types of books, bags, garments, and footwear are exempted from the regulation.
U.S. stakeholders have asserted that Indonesia is applying tariffs in excess of its WTO bound rates for certain categories of information and communications technology (ICT) products. Since at least 2020, Indonesia appears to be applying a 10 percent duty for certain categories of the tariff subheading 8517.62 which includes switching and routing equipment, and a 5 percent duty on computer servers under tariff subheading 8471.50. Stakeholders assert that Indonesia’s tariffs not only impose an unfair financial burden on foreign firms, but they also limit access for Indonesian consumers and firms to critical ICT products needed to support Indonesia’s digital infrastructure growth goals.
For a full review of Indonesia’s import tariffs, please see the Indonesia section of the United States Trade Representative’s National Trade Estimate on Foreign Trade Barriers 2022.
To view duties and tariffs for Indonesia, see Customs Info Database Tariff Lookup Tool.