Indonesia - Country Commercial Guide
Import Tariffs

Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.

Last published date: 2020-10-11

Indonesia’s average Most Favored Nation (MFN) applied tariff rate was 8.1 percent in 2018 (latest data available). Indonesia’s average MFN applied tariff rate was 8.6 percent for agricultural products and 8.0 percent for non-agricultural products in 2018 (latest data available). Indonesia has bound 96.3 percent of its tariff lines in the World Trade Organization (WTO), with a simple average WTO bound tariff rate of 37.1 percent.

Indonesia periodically changes its applied rates and over the last ten years 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. Indonesia’s simple average WTO bound tariff rate is much higher than its average applied tariff. 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. Under Minister of Finance (MOF) Regulation 112/2018, Indonesia levies an import duty of 7.5 percent on certain goods (known as “consignment goods”) imported by businesses regardless of the tariff rate in Indonesia’s WTO and FTA schedules, if the Free On Board (FOB) customs value of the good is more than $75 but less than $1,500.

Indonesia is a party to the region-wide Association of Southeast Asian Nations (ASEAN) Free Trade Area. ASEAN, and by extension Indonesia, also has preferential trade agreements with Australia, China, Hong Kong India, Japan, Korea, and New Zealand and concluded text-based negotiations of the Regional Comprehensive Economic Partnership in November 2019. Indonesia has signed bilateral free trade agreements (FTAs) with Australia, Chile, Mozambique, as well as with Iceland, Liechtenstein, Norway, and Switzerland under the European Free Trade Association, but as of the end of 2019, none of these FTAs are yet in force except with Australia and Chile. The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) entered into force on July 5, 2020. Indonesia recently concluded negotiations with Korea on a Comprehensive Economic Partnership Agreement. Indonesia is negotiating other FTAs with the European Union (EU), India, Tunisia, and Turkey as well as reviewing its trade agreements with Japan and Pakistan.

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