Digital Goods Tariff Is Free

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Nov 14, 2018
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JAKARTA - As part of an online business or e-commerce development plan in the country, the fiscal authority decides the digital goods tariff of 0%.

This certainty is confirmed by the Director of Technical and Customs Directorate General of Customs and Excise Dawn Doni. In addition to explaining customs tariffs, the rules also regulate the recording of digital goods in harmonized system code.

"For digital goods, we with the Fiscal Policy Office of the Ministry of Finance has issued the Regulation of the Minister of Finance, one of which is 0% tariff," said Fajar, Tuesday (27/3).

Fajar said the imposition of import duty is still temporary so it is possible to change the tariff treatment. This policy is expected to encourage the digital goods industry, while creating a balanced playing field.

"It is only related to the treatment of customs, for taxes later".

In material related to digital goods, Article 8B paragraph 2 of Law no. 17/2006 on Customs expressly stipulates that software or data is the object of the Customs Act.

However, the digital goods fiscal treatment can’t be applied because the World Trade Organization in the Ministerial Conference in Nairobi establishes a moratorium on the collection of import duties until 2017.

Although the transaction has not been significant, the Directorate General of Customs and Excise records the value of digital goods imported directly outside the streaming system or through social media platforms that reach around Rp75 trillion.

In addition to providing a 0% import duty, the government is also preparing the concept of a bound logistics center (EBEX) for e-commerce to be defined in e-commerce concepts to be defined in the e-commerce distribution center concept (EDC).

The EDC concept is designed to support the growth of export oriented Small and Medium Industry (IKM). The concept picture of EDC is similar to the bound logistics center (PLB) that has been implemented in 76 places.

As a distribution center, EDC will store imported goods as well as local e-commerce where given fiscal facilities in the form of ease of tax aspects, customs, to operational flexibility.

Finance Minister Sri Mulyani Indrawati said that various breakthroughs by the government are expected to boost export investment.

The question was submitted by the Minister of Finance during a working visit with President Joko Widodo when inaugurated an online customs facility at PT Samick Indonesia, Bogor, Tuesday (27/3).