Buying Goods from Batam will be More Expensive, Here's How to Calculate It

TRIBUNBATAM.id - Buying goods from Batam will be more expensive than usual. This is because imported goods coming out of Batam will be subject to import duties starting January 30, 2020.

This applies after the Regulation of the Minister of Finance (PMK) Number 199 / PMK 010 2019. The regulation reduced the threshold of import duty free from 75 US dollars to only 3 US dollars or equivalent to Rp 42,000 (exchange rate of Rp 14,000).

That means, the price of imported goods that are more than Rp 42,000 will be subject to import duties so the price will be more expensive.

This provision also applies to imported goods that leaving Batam.  

Actually in the PMK 199 / PMK 010 2019 rules explained, all goods from abroad that enter Batam are not subject to import duties and import taxes.

However, if the goods are released from Batam to other parts of Indonesia, then import duties and import taxes will be charged in accordance with those specified. 

How is the calculation done?

Keep in mind, with the reduction in the threshold, the government applies an import tax rate of 17.5 percent consisting of 7.5 percent import duty and 10 percent Value Added Tax (VAT) and 0 percent Income Tax (PPh).

This tariff does not apply to textile products, bags and shoes because it is excluded.

Suppose you buy imported goods for 14.9 US dollars. Plus shipping and insurance respectively 3 US dollars and 1 US dollar, then the price of the item is 18.9 US dollars or Rp 283,500 (exchange rate of Rp 15,000 per US dollar).