Indonesian Trade Tariff – Indonesia, a rapidly emerging market in the global commerce landscape, has a complex yet transparent system of trade tariffs. With its vast population and increasing middle-class consumers, the nation offers significant opportunities for trade.
Trade Tariff System in Indonesia
Indonesia employs a harmonized system for its import tariffs, adapting international standards to fit its local trade and economic scenarios. This system ensures a transparent and streamlined approach for goods entering the nation, bolstering Indonesia’s global trade position.
Categories of Tariffs
- Ad Valorem Tariffs: Based on a percentage of the item’s total value. They are the most commonly used tariff type.
- Specific Tariffs: Charged per unit of the item, such as per kilogram or liter.
- Compound Tariffs: A combination of both Ad Valorem and Specific Tariffs.
Trade Tariff Rates
Indonesia’s average Most-Favored-Nation (MFN) applied tariff rate was 8.1 percent in 2021. The average MFN applied tariff rate was 8.7 percent for agricultural products and 8.0 percent for non-agricultural products in the same year. Indonesia has bound 96.1 percent of its tariff lines in the World Trade Organization (WTO), with an average WTO bound tariff rate of 37.3 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.
Read More:
Indonesia Customs website here.
Collection of Indonesia customs consultations here.
Topic: Indonesian trade tariff, Indonesia, Trade, Tariffs, Import, Export, ASEAN, Global Commerce, Economic Policy