Passenger Goods Under US$500 Exempt from Import Duty, VAT, and Import Income Tax

Several provisions in the regulation on the importation of passenger goods, as stipulated in Minister of Finance Regulation Number 207/PMK.04/2017, have been amended through PMK Number 34 of 2025.

One of the key changes relates to the exemption from import duty, value-added tax (VAT), and income tax on passenger goods.

The term "imported passenger goods" refers to personal belongings owned by passengers or crew members brought from outside the customs area for their personal use.

In other words, these are imported goods that arrive together with the passenger or crew, including personal necessities or leftover provisions.

VAT and Income Tax on Imported Goods Exemption

The provision on VAT and income tax on imported goods exemption was not regulated under the previous regulation. In PMK Number 207 of 2017, the government only granted an exemption from import duty.

This facility applies to personal goods valued up to US$500 per passenger and up to US$50 per crew member per trip. This is stipulated in the additional Article (1a) of PMK Number 34 of 2025, which states:

Personal belongings of crew members of a means of transport that are granted import duty exemption as referred to in paragraph (1) shall also be:

a. not subject to value-added tax or value-added tax and luxury-goods sales tax; and

b. excluded from income tax collection.

Special Provisions for Hajj Pilgrims

Under the new regulation, the government provides administrative relief for Hajj pilgrims bringing goods, by raising the exemption limit for import duty and import taxes to US$2,500 per person per trip.

Additionally, Hajj pilgrims are granted simplified reporting procedures for their belongings; they are only required to make a verbal declaration, with no need for a written report.

The exemption from written notification also applies to certain categories of passengers, including:

• Individuals aged over 60
• Persons with disabilities
• Regular Hajj pilgrims
• VVIP state guests
• Certain designated passengers or crew members

However, if a passenger wishes to submit a written declaration, it can be done using a customs declaration or a special import goods notification, available in electronic or paper form.

READ: Imports of Nylon Film Products from China, Thailand, and Taiwan Subject to Anti-Dumping Duties

Medals and Trophies Exempt from Import Duty

The new regulation also reaffirms the exemption from import duty and import-related taxes for personal belongings brought by passengers in the form of medals, trophies, plaques, badges, or awards.

This facility applies to awards carried by Indonesian citizens returning from competitions in fields such as sports, science, arts, culture, religion, or other areas.

To qualify for the exemption, passengers must provide documentation or proof of participation in the international competition or award event. This may include confirmation from an Indonesian ministry, agency, or institution, the event organizer, or coverage by national or international media.

Imposition of Import Duty

For personal belongings of passengers valued over US$500, Hajj pilgrims’ belongings exceeding US$2,500, and crew members’ belongings valued over US$50, the excess amount is subject to import duty and VAT, but not subject to income tax on imported goods.

The import duty rate imposed on the excess value is 10% of the excess amount. Meanwhile, the VAT rate applied follows the prevailing VAT rate as stipulated in current regulations.

Exemption from Anti-Dumping Duty

One important clause regulated under PMK No. 34 of 2025 concerns anti-dumping duties.

All personal belongings of passengers and crew that are exempt from import duty and import-related taxes under this regulation are also excluded from the imposition of: anti-dumping import duty, safeguard duty, countervailing duty, and retaliatory import duty

All these provisions take effect starting June 6, 2025. (ASP/KEN)