Buying from abroad is never settled at the item price — the real import cost is the sum of the customs value (price + insurance + freight), import duty, import VAT, and import income tax. This article breaks the formulas down step by step so you can estimate the total before your goods arrive.
Import Cost Components
Value
CIF = Price + Insurance + Freight
Duty
Import duty per HS tariff
11%
Import VAT (on CIF + duty)
2.5%+
Import income tax, varies with/without API
Step 1: Determine the Customs Value (CIF)
Customs value is the basis for calculating import charges, following the Cost, Insurance, Freight (CIF) principle. Here is how to calculate it:
Customs Value (CIF)
Customs Value = Price of Goods (FOB) + Insurance + Freight
Price of the goods per invoice (in foreign currency)
Transport insurance
Freight / shipping to the Indonesian destination port
Step 2: Calculate Import Duty
Import duty = import duty rate (%) × Customs Value. The rate depends on the HS code / tariff heading of your goods — ranging from 0% (duty-free) to tens of percent. Check the rate in the BTKI (Indonesian Customs Tariff Book) or the customs tariff console.
Import Duty Formula
Import Duty = Duty Rate × Customs Value
Step 3: Calculate Import VAT
Import VAT (Value Added Tax) is calculated on the import value, which is Customs Value + Import Duty. The standard rate is 11% (under the HPP Law).
Import VAT Formula
Import VAT = 11% × (Customs Value + Import Duty)
Step 4: Calculate Import Income Tax (PPh)
Import income tax (PPh Article 22) is levied on the import value (Customs Value + Import Duty). The rate depends on your status:
- 2.5% — with an API (Import License/Number)
- 7.5% — without an API
- 0.5% — designated importers (specific industries / raw materials)
- 0% — certain exempted goods
Import Income Tax Formula
Import Income Tax (PPh) = Rate × (Customs Value + Import Duty)
Full Worked Example
Case study: goods priced IDR 90M, insurance IDR 5M, freight IDR 5M, 10% duty, with API
- Customs Value (CIF) = 90 + 5 + 5 = IDR 100,000,000
- Import Duty = 10% × 100M = IDR 10,000,000
- Import VAT = 11% × (100 + 10)M = 11% × 110M = IDR 12,100,000
- Import income tax = 2.5% × 110M = IDR 2,750,000
- Total import cost = 110M + 12.1M + 2.75M = IDR 124,850,000
Easily Overlooked Costs
- Broker/customs service fees (PPJK) — document handling services (not including government charges)
- Storage / demurrage / detention fees at the port
- Domestic transport costs from port to your warehouse
- Other charges — e.g. additional/anti-dumping import duty where applicable to certain goods
Tips for Estimating
- Always calculate from the CIF, not just the invoice price — this common mistake makes estimates far off.
- Use a calculator/ledger that separates import duty and taxes for transparency.
- Bring in an experienced customs broker (PPJK) for goods with complex HS codes — also read our guide to choosing a licensed PPJK.
Import Cost FAQ
What is the difference between customs value and import value?
Customs value is the basis for calculating import duty (CIF: price + insurance + freight). Import value is the customs value plus import duty, and forms the basis for calculating import VAT and import income tax.
What is the current import VAT rate?
The standard import VAT rate is 11% under the HPP Law. Some luxury goods use a higher rate, and certain goods may be exempt.
How do I check my goods’ import duty rate?
Check your goods’ HS number in the Indonesian Customs Tariff Book (BTKI) or the customs tariff console at www.beacukai.go.id. Import duty rates are usually 0%–40% depending on the tariff heading.
Do I still need to pay import income tax even if I pay domestic tax?
Yes. Import income tax (PPh Article 22) is collected at import, separate from final/general income tax. Importers may credit it in line with applicable tax regulations.
I’m an importer without an API — how does my cost differ?
Your import income tax rate is higher: 7.5% (without API) versus 2.5% (with API), so your total import cost is bigger. It’s advisable to obtain an API if you import frequently.
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