Indonesia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in indonesia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Import Tariffs
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As of 2025, Indonesia maintains a relatively open trade regime, with the average Most-Favored-Nation (MFN) applied tariff rate around 8.1%, similar to previous years. The tariff rate for agricultural products is about 8.7%, while non-agricultural products stand at 8.0%. Indonesia has bound 96.1% of its tariff lines at the World Trade Organization (WTO), with an average bound tariff rate of 37.3%, offering flexibility between applied and bound rates.

Indonesia continues to use tariffs to protect its domestic industries. Over the years, it has gradually raised tariffs on a variety of products, such as consumer electronics, food and beverage products, cosmetics, agricultural goods, and machinery. Sectors like automobiles, certain steel products, and chemicals face higher tariff rates or unbound tariff lines. In agriculture, more than 1,300 tariff lines are bound at or above 35.5%. 

In February 2025, Indonesia implemented Finance Minister Regulation No. 4/2025, simplifying import duties on eight categories of goods, including books, steel, textiles, and bicycles. This regulation reduced the MFN tariff structure to three categories: 0%, 15%, and 25%. For instance, scientific books remain duty-free and are also exempt from VAT and income tax, while items like wristwatches, cosmetics, and iron/steel are subject to a 15% tariff. Bags, textiles, footwear, and bicycles now fall under a 25% tariff, down from previous rates ranging between 5% and 40%

In 2025, Indonesia enforced the regulation Minister of Finance Regulation No. 199/2019, which lowered the de minimis threshold for duty-free personal imports (known as “consignment goods”) from $75 to $3. As of 2025, this rule continues to apply, affecting a wide range of e-commerce and cross-border retail shipments. While books, garments, footwear, and bags are exempted, most consumer goods are now subject to import duties and VAT, even in small quantities.

U.S. exporters and stakeholders continue to express concern over tariffs on digital and ICT goods that may violate Indonesia’s WTO commitments under the Information Technology Agreement (ITA). Indonesia is applying 10% tariff on switching and routing equipment (HS 8517.62) and the 5% tariff on computer servers (HS 8471.50). These products are covered under Indonesia’s zero-duty commitment under the Information Technology Agreement (ITA), and their imposition is viewed as non-compliant with Indonesia’s WTO obligations. This tariff issue remains unresolved and could be a barrier to Indonesia’s digital transformation goals.

The discrepancy between applied and bound rates—particularly in sensitive sectors such as agriculture, automotive, ICT, and processed food—continues to be a market access challenge for U.S. exporters.

U.S. companies are advised to consult with local importers and the U.S. Commercial Service in Jakarta to confirm current tariff rates, exemptions, and procedures, as regulations are subject to change.

For a full review of Indonesia’s import tariffs and U.S. government assessments, see the Indonesia section of the 2025 NTE - Indonesia.

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