Indonesia raises import duty on imported consumer goods to protect domestic industry

JAKARTA (TheInsiderStories) - The Indonesia government has raised import duties of imported consumer goods to protect domestic industry and to reach 2015’s taxation revenues target of Rp1,484.6 trillion ($111.62 billion). The import duty regulation, signed by Finance Minister Bambang Brodjonegoro on July 8, rules a new import duty for 1,151 items including alcohol, sausage or meat processed, coffee, tea and others.

The ministry released PMK No. 132/PMK.010/2015 which is the third amendment of ministerial decree PMK No. 213/PMK.011/2011 on Classification System and Imposition of Import Duty on Imported Goods. In this rule, some imported goods are imposed with import duties ranging from 5 to 150 percent.

A maximum import duty of 150 percent is slapped on beverages with alcohol content of less than 80 percent by volume.

“The ministerial regulation comes into force after 14 days from the date of promulgation The new import duty rule is for downstream products and does not against the investment environment or tax allowances law,” Bambang said.

According to law, starting July 23, 2015, the import of alcoholic beverages is imposed with import duty of 150 percent, roasted coffee or decaffeinated or not is imposed with 20 percent, tea flavored or not 20 percent. Sausages and similar products of meat are imposed with import duty of 30 percent, prepared or preserved fish, caviar and caviar substitutes prepared from fish eggs 15 percent.

Pasta, cooked or stuffed or not, such as spaghetti, macaroni, noodles and lasagna are slapped with import duty of 20 percent.

Confectionery (including white chocolate) not containing cocoa is charged with 20 percent import duty, except lozenges containing medications 15 percent. Chocolate and other food preparations containing cocoa are imposed with import duty of 10 percent, 15 percent and 20 percent.

Breads, pastries and biscuits are charged with import duty of 20 percent. Ice cream and other edible ice containing cocoa or not is slapped with 15 percent import duty. Beverage fermentation of fresh grapes, including fortified wines is subjected to 90 percent import duty. Vermouth and other drinks of fresh grapes flavored with vegetable substances or aromatic substances are subject to import duty of 90 percent.

Furthermore, other fermented beverages such as sake, toddy and shandy are charged with import duty of 90 percent. Ethyl which is not denatured alcohol with alcohol content of less than 80 percent by volume such as brandy, whiskey, gin and geneva, vodka, liqueurs and cordials are charged 150 percent import duty.

Indonesia Food and Beverage Association welcomed the new import duty for numbers of items of imported goods.

“I think this is a good step for harmonization. This has fueled a rise in domestic food and beverage industry. With the increase in the import duty, the domestic industry will get better,” said Chairman Gapmmi Adhi Lukman. He added, the new rule is considered to encourage the domestic industry more advanced food and beverages again.

Here are some items that are imposed with import duties :

1. Coffee (20 percent)
2. Tea (20 percent)
3. The sausage / processed meat (30 percent)
4. Meat / preserved blood (30 percent)
5. Fish processed / preserved (15 percent)
6. crustaceans, molluscs and aquatic invertebrates processed / preserved (15 percent)
7. Chewing gum (20 percent)
8. Brown (15 percent)
9. The pasta/noodles (20 percent)
10. The food is cereals (10 percent)
11. The bread /pastries (20 percent)
12. Vegetables, fruit, nuts (20 percent)
13. Extracts of coffee / tea (20 percent)
14. The sauces and dairy (15 percent)
15. Ice cream (15 percent)
16. Other food preparations (Tempe) (15 percent)
17. Soft Drinks: Mineral water / soda (10 percent) and Non soda pop drinks (20 percent)
18. Wine grapes (90 percent)
19. Vermouth and other wine fermented beverages (90 percent)
20. Drink fruit juice (90 percent)
21. Drink ethyl alcohol with alcohol content of less than 80 percent (Brandy, whiskey, rum), Beer 90 percent and others 150 percent