Classify by function, not by name
Indonesian classification follows the BTKI / HS logic, where a machine’s tariff line follows its function and design, not its marketing name. A "packaging machine", a "food machine" and a "multi-purpose industrial robot" can sit in different chapters with different duty and Lartas outcomes.
- Describe the machine by what it does, the material it processes, and whether it is designed for a specific industry — that trio usually pins the heading.
- Multi-function machines follow the principal-function logic; when genuinely ambiguous, the PPJK’s reasoned classification and, if needed, a formal ruling beat guesswork.
- We cross-check every line on INSW / BTKI before the container sails. See HS Classification Guide.
Spare parts vs complete machine
The single most common machinery dispute: is this a machine, or a part of one?
| Shipment reality | Classification direction | Practical consequence |
|---|---|---|
| Complete machine, one crate | Machine heading for its function | Straightforward; normal Lartas screening |
| Machine shipped in modules for one project | Usually the machine heading, with the packing list proving the set | Splitting across HS lines to "save duty" invites queries |
| Genuine spare parts | Part headings, often with their own duty rates | Invoice must show part numbers and machine compatibility |
| Parts that are themselves machines (motors, pumps) | Their own headings | Do not lump under "parts" — value density triggers review |
Costly mistake: Declaring a complete machine as "spare parts" to catch a lower duty line. When physical inspection shows an assembled machine, the reclassification, duty shortfall and delay all land on the importer — and the record follows your NPWP.
Used machinery: extra scrutiny is the norm
Used machines are not automatically blocked, but they face tighter checking: age, condition, remaining service life, and in some lines additional technical requirements under the rules in force.
- Expect questions about manufacture year and condition — have the supplier state both on the invoice.
- Photograph the machine before packing; it both supports the declaration and documents what was actually loaded.
- Budget schedule slack: a used machine is more likely to be flagged for document or physical review than an identical new one.
Wooden packaging and ISPM awareness
Heavy machines almost always travel in solid wood crates or on wooden skids — which makes packaging a compliance item, not just a protection item.
- Solid wood packing material is expected to meet ISPM-type treatment (heat treatment or fumigation) with the IPPC marking stamped on the wood.
- Non-compliant wood can trigger quarantine action on arrival — re-treatment, re-packing, or delay — while demurrage runs.
- Alternatives exist: plywood and plastic do not carry the same solid-wood expectation and often avoid the issue entirely. Specify packaging material in the booking.
Cost and time: a worked duty example
Illustrative numbers only — the duty rate depends on the exact BTKI line and the rules in force, and freight is subject to the prevailing quote. The arithmetic is what you should recompute with your own figures.
- Transit is typically about 9–14 days to Jakarta by sea plus clearance time; a machine that needs a pre-shipment technical review adds lead time on the documents side, not the ocean side.
- For heavy-lift or out-of-gauge machines, lifting and trucking costs change the picture — see Trucking & Last Mile.
| Line item | Basis | Illustrative amount (USD) |
|---|---|---|
| CIF value (goods + freight + insurance) | Invoice + freight + insurance | 30,000 |
| Import duty (BM) at an assumed 5% | 5% × 30,000 | 1,500 |
| Tax base = CIF + BM | 30,000 + 1,500 | 31,500 |
| PPN, ~11% effective (12% statutory on DPP = 11/12 of base) | 31,500 × 12% × 11/12 ≈ 31,500 × 11% | 3,465 |
| PPh 22 at 2.5% (API + NPWP tier) | 2.5% × 31,500 | 787.50 |
| Total duty + taxes | 1,500 + 3,465 + 787.50 | 5,752.50 |
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.