In short
- BM (import duty) applies to the CIF value — goods plus freight plus insurance — at a rate set by the HS code.
- PPN (VAT) is 12% statutory (UU HPP 7/2021); for non-luxury goods the taxable base (DPP) is 11/12 of value, so the effective rate is about 11%.
- PPh 22 (income tax art. 22) applies to CIF + BM: 2.5% with API+NPWP, 7.5% without API, and a 100% surcharge without NPWP.
- Foreign-currency values are converted at the customs exchange rate (NDPBM) — a periodically set official rate, not the market spot. See Customs Exchange Rate (NDPBM).
The three taxes in one table
The structure is stable; the rates depend on your HS code and your importer status. Rates shown are the standing framework — always verify against the rules in force at filing time.
- The PPh 22 rate is decided by your importer identity, not the goods. See NPWP, NIB & API.
- Certain luxury goods are taxed at the full statutory 12% without the 11/12 DPP adjustment — verify the treatment of your goods under the rules in force.
| Tax | Base | Rate |
|---|---|---|
| BM — import duty | CIF value (converted at NDPBM) | By HS code; ACFTA/FORM E can reduce or eliminate |
| PPN — VAT | CIF + BM (DPP = 11/12 of that base for non-luxury goods) | 12% statutory → about 11% effective |
| PPh 22 — income tax art. 22 | CIF + BM | 2.5% (API+NPWP) · 7.5% (no API) · +100% surcharge (no NPWP) |
Order of operations
The sequence matters; doing it in the wrong order is the most common spreadsheet error.
- Step 1. Build CIF: goods value + freight + insurance (or the agreed transaction value per customs valuation rules).
- Step 2. Convert CIF to rupiah at the NDPBM in force at filing.
- Step 3. BM = CIF(IDR) × BM rate from the HS code (after any FORM E preference).
- Step 4. PPN = 12% × (11/12 × (CIF + BM)) — i.e. about 11% of CIF + BM for non-luxury goods.
- Step 5. PPh 22 = tier rate × (CIF + BM).
- Step 6. Total tax = BM + PPN + PPh 22. This is what the payment channel collects before release.
Full worked example
Goods USD 10,000, freight USD 900, insurance USD 100 → CIF USD 11,000. Assume an illustrative BM rate of 10%, no FORM E, importer with API+NPWP. (USD shown for clarity; the assessment itself converts at NDPBM.)
| Step | Computation | Result (USD, illustrative) |
|---|---|---|
| CIF | 10,000 + 900 + 100 | 11,000 |
| BM | 11,000 × 10% | 1,100 |
| PPN base (CIF + BM) | 11,000 + 1,100 | 12,100 |
| PPN effective | 11% × 12,100 (= 12% × 11/12 × 12,100) | 1,331.00 |
| PPh 22 (API+NPWP) | 2.5% × 12,100 | 302.50 |
| Total taxes | 1,100 + 1,331 + 302.50 | 2,733.50 |
| Effective load on CIF | 2,733.50 ÷ 11,000 | about 24.9% |
Recompute it yourself: 12% × 11/12 = 11% exactly, so PPN is simply 11% of (CIF + BM) for non-luxury goods. If your BM rate or FORM E preference differs, change one input and redo the rows — the method is identical.
The same cargo, three importer identities
PPh 22 is where your registration status bites. Same CIF 11,000, same BM 1,100, same PPN 1,331 — only PPh 22 moves.
- A company importing regularly should hold API and NPWP — the 7.5% tier alone can exceed the cost of registration quickly.
- The no-NPWP case is where undeclared or personal-import structures hide; it also cuts off any VAT trail. See Undername Import Risks.
| Importer status | PPh 22 rate | PPh 22 (illustrative) | Total taxes |
|---|---|---|---|
| API + NPWP | 2.5% | 302.50 | 2,733.50 |
| No API (with NPWP) | 7.5% | 907.50 | 3,338.50 |
| No NPWP | 2.5% + 100% surcharge = 5% | 605.00 | 3,036.00 |
What moves these numbers
Four levers, in descending order of typical impact.
- HS classification — sets the BM rate and can trigger Lartas. One digit changes everything. See HS Classification.
- FORM E — reduces or eliminates BM for qualifying Chinese-origin goods. See FORM E & ACFTA.
- Declared value — every tax scales with CIF; adjusting invoices downward is a penalty trap, not a saving. See Undervalue Risks.
- NDPBM — the official conversion rate shifts all rupiah amounts together. See Customs Exchange Rate (NDPBM).
Common mistakes
Each of these produces a wrong budget or a rejected declaration.
- Using the market spot rate instead of NDPBM — the assessment will not match your estimate.
- Computing PPN and PPh 22 on CIF alone — the base is CIF + BM.
- Quoting "the duty" before the HS code exists — there is no such number.
- Assuming FORM E applies automatically — the claim must be filed correctly with a valid certificate.
- Forgetting PPh 22 entirely — the payment shortfalls at the bank counter, and release waits.
Related pages
This page summarizes field practice and publicly available Indonesian import rules for general business reference only—it is not legal, customs, or pricing advice. Customs provisions, tariff rates, and licensing requirements keep changing, so the rules in force at the time and the official processing result always prevail. Wuhan Freedom International Logistics Co., Ltd. · Licensed PPJK in Indonesia · Jakarta / Semarang / Wuhan.