Shipping small parcels to 
Indonesia: is under USD 3 duty-free, and what applies above it? in detail
Indonesia treats small parcels (Barang Kiriman) by customs value per recipient per consignment: up to FOB USD 3, no import duty but VAT (PPN) is charged; above USD 3 up to USD 1,500, general goods pay 7. 5% duty plus VAT. Since 5 Mar 2025 (PMK 4/2025), eight product groups have fixed rates instead: books 0%; cosmetics, iron/steel articles and watches 15%; bags, textiles and clothing, footwear, e-bikes/e-scooters and bicycles 25%. The 15% and 25% groups also pay 5% income tax (PPh). Effective VAT on non-luxury goods is 11%. For marketplace orders, the platform (or its Indonesian representative) is the importer and must send order data to customs first.
- Applies to
- Postal, courier and marketplace parcels sent from China to individuals in Indonesia.
Dear friend,
Welcome! This letter sets out what you need to know, plainly and in order.
The rules
| Customs value per consignment (per recipient) | Import duty | VAT (PPN) | Income tax (PPh) | Basis |
|---|---|---|---|---|
| Up to FOB USD 3 | Exempt | Charged | Exempt | PMK 96/2023 Art. 29(2) |
| Over USD 3 up to USD 1,500, general goods | 7.5% | Charged | Exempt | Art. 29(3) |
| Same band, books (49.01–49.04) | 0% | Charged | Exempt | Art. 29(4) as amended by PMK 4/2025 |
| Same band, cosmetics (33.03–33.07), iron/steel articles (ch. 73), watches (91.01, 91.02) | 15% | Charged | 5% | Same, and Art. 29(4a) |
| Same band, bags and cases (42.02), textiles and clothing (ch. 61–63), footwear (ch. 64), e-bikes/e-scooters (8711.60.92–.99), bicycles (87.12) | 25% | Charged | 5% | Same, and Art. 29(4a) |
| Over USD 1,500, or formal PIBK declaration | General (MFN) tariff | Charged | As applicable | Art. 29(5) |
- In the USD 3–1,500 band, PMK 4/2025 exempts these parcels from anti-dumping, safeguard and similar additional duties.
- VAT: the nominal rate is 12% from 2025, but for non-luxury goods it is applied to a base of 11/12 of the value, so the effective rate is 11%; goods subject to luxury sales tax (PPnBM) pay 12% (
Directorate General of Taxes on PMK 131/2024).
Sources: PMK 96/2023 full text (DGT regulation library);
PMK 111/2023 (moved the start date to 17 Oct 2023);
PMK 4/2025 original (Ministry of Finance legal database, JDIH), promulgated 3 Feb 2025, in force 30 days later;
PMK 131/2024 original (JDIH);
Ministry of Finance explainer: PMK 4/2025 in force 5 Mar 2025, rates 0%, 15%, 25%, PPh 5%.
Who pays
- Marketplace orders: a platform based in Indonesia, or the Indonesian representative appointed by a foreign platform, is treated as the importer and must pay duty and taxes (PMK 96/2023 Art. 3(2)–(3)). Platforms with more than 1,000 import parcels a year must partner with Indonesian Customs and send e-catalogue and e-invoice data; if they don't, customs will not process their parcels (Art. 13–14).
- Foreign platform with no Indonesian representative yet: the recipient is the importer (new Art. 3(2a) added by PMK 4/2025).
- Non-marketplace orders: the recipient is the importer (Art. 3(1)).
- How post and courier pay: customs issues a duty bill (SPPBMCP), passed to the importer through the operator. The postal operator must pay on the importer's behalf within 30 days, couriers within 3 days; late payment costs the operator a 10% fine on the duty due (Art. 31, 35).
What to do
- Before quoting, check which band the parcel falls in per recipient per consignment, then check the HS code against the eight fixed-rate groups.
- If you sell clothing, shoes, bags or cosmetics, add 15% or 25% duty, 5% PPh and 11% VAT to the landed cost, not 7.5%.
- On a marketplace, ask whether the platform is set up as importer in Indonesia and collects tax at checkout.
- Do not split orders or under-declare to stay under USD 3; customs values per recipient per consignment.
When to use a licensed professional
- If a parcel is held, needs a formal PIBK declaration, or exceeds USD 1,500, use a licensed Indonesian customs broker (PPJK).
Check before paying, and warning signs
- "Mark it as a gift and it's tax-free" or "split it into several parcels" are warning signs.
Still unclear
- The USD 3 threshold is FOB (PMK 96/2023, Article 29(2)). Article 21(4) of the same regulation has the electronic data (CN) record the price on an FOB basis, with freight and insurance (if any) listed separately, and Article 29(3)(c) says the dutiable value above USD 3 is set on the overall customs value of the Barang Kiriman, under valuation rules found elsewhere. These articles do not state expressly whether freight and insurance are added to the base for duty and PPN; customs determines it.
- Indonesia also has prohibited and restricted goods lists, not covered here.
- This page is general information from official sources, not customs or tax advice.
Sources for this letter
PMK 96/2023 full text (DGT regulation library)
PMK 4/2025 original (Ministry of Finance legal database, JDIH)
Ministry of Finance explainer: PMK 4/2025 in force 5 Mar 2025, rates 0%, 15%, 25%, PPh 5%
Wishing you good business,
The mouwise team
Checked 2026-10-27
Contact us