Indonesia Raised Taxes on Imported Goods

Luthfil Hadi - Jakarta, 10/09/2018, 14:30


Reported from, Indonesia Government through The Minister of Finance, Sri Mulyani Indrawati, issues a new regulation. The new regulation is the Regulation of Ministry of Finance Number 110/PMK.010/2018. It serves to change some parts of the regulation issued last year, PMK number 34/PMK.010/2017 on income tax collection article 22 regarding the payment for the delivery of goods and import activity or business activity in other sector.

In this new regulation, Indonesian government decided to raise taxes on some of the category from imported goods. The categories such as cosmetics, automotive, home appliances, electronic, to precious metal. Cosmetics such as perfume, acne cleanser, soap, and make up powders are some of the affected goods. Even clothes, gloves, belts, and work shoes and boots are also affected by the new regulation.

For the automotive, the new regulation affect go-kart with 1,000 cc cylinder or higher, Caravan, Ambulance, Sedan, ATV, to Hearse under 3,000 cc cylinder have to see their taxes raised. Precious metal such as gold and silver, rocks such as marble, porcelain, granite, travertine, to alabaster will also get their tax raised.

The taxes is raised to 10% for the imported goods, it is not a small number. The government decided to raise those imported goods taxes because they feel those goods can be produced locally.

By raising the taxes on imported goods, the government hopes to increase their tax revenue to balance their books. With the raise in taxes, the Indonesian consumption level of imported goods is expected to decline and reduce the dependency on important goods. The government hopes that people would return back to use local product rather than imported goods.

Local producer is expected to take back domestics market and grow their business. The government also expect them to increase the quality and quantity of their product to fulfil the markets standard and demands. In doing so, local product will be able to improve their quality and could compete with international product. With the improvement of quality, the government hopes to drives the export business livelier. It is in line with the vision and mission of Indonesian President, President Jokowi, to transform Indonesia from a consumer nation to a producer nation with competitive product that is recognized by the world.

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