Since 2006, importers of software and other digital goods via electronic transmission into Indonesia are required to fulfill customs obligations under Law No. 17 of 2006 on the Amendment to Law No. 10 of 1995 on Customs. However, because of the lack of procedural rules on how to submit customs declarations importers were unable to comply and the custom authority did not enforce. The new Minister of Finance Regulation No. 190/PMK.04/2022 on Transfer of Self-consumed Imported Goods sets out the procedural rules for submitting customs declarations for the importation of software or other digital goods via electronic transmission. The regulation has taken effect on January 14, 2023 and brings in two requirements: 1. To submit a customs declaration to the customs office where the importer is domiciled or another customs office within 30 days of paying for the intangible goods 2. To pay the relevant import taxes and customs duties, which will show up when the customs declaration is submitted to the state treasury.
The regulation seems to mainly target companies involved in the technology industry rather than any importers given that the monitoring process would be conducted via customs audits. This monitoring process will likely catch companies with an import identity number and meet requirements as an object of a customs audit. This has also raised confusion among the offshore sellers of the digital goods appointed as VAT collectors as to whether the buyers should self-pay the VAT via a customs declaration or to the appointed offshore seller. The Council will be compiling members’ feedback on this issue through a separate Call for Input email.
