Beginning in 1986 Indonesia has gradually liberalized its trade regime and taken a number of important steps to reduce protectionism. In 1996, a deregulation package was issued which simplified the tariff structure, reduced overall tariff levels, removed restrictions and replaced many non-tariff barriers.
Indonesia is a member of the Association of South-East Asian Nation (ASEAN), The ASEAN Free Trade AREA (AFTA), The Asia-Pacific Economic Co-operation (APEC) Forum and the World Trade Organisation (WTO) and follows agreements made in each of these multilateral forums.
Indonesian authorities require the following documentation for imported goods: pro-forma invoice; commercial invoice; bill of lading; certificate of origin; insurance certificate; special certificates. Importers are also required to inform the Customs Office in the first phase by presenting the import documentation on a computer diskette. Customs Inspections of imported goods may be performed after they are imported in the importer's warehouse.
Tariffs
In general, import tariff rates range from 5 to 30 %. Major exceptions to this are the 170 % duty applied to all imported distilled spirits and wine and the 125% duty on built up passenger and light vehicles.
Over and above a value added tax of 10% is levied on most imports (although a few items are zero rates). Luxury or Excise Tax can be as high as 35 % for certain "luxury" products. The VAT and Excise Taxes are applied on imports and domestic goods.
The following goods are categorized as prohibited and restricted: narcotics, psychotrophics, explosive materials, fire-arm and ammunition, fire works, defined books and printed materials, audio and/or visual recording media, telecommunication equipment, color photocopies, endangered species of wild fauna and flora, and parts thereof, certain species of fish, medicines, food and beverages not pre-registered at the Department of Health, dangerous materials, pesticides, ozone depleting substances and goods containing ozone depleting substances, wastes and culturally valuable goods. Prohibited and Restricted goods must receive the approval of the appropriate Government of Indonesia agency before they may be imported.
The Government of Indonesia continues to reduce the number of items subject to import restrictions and special licensing requirements. Goods such as alcoholic beverages, motor vehicles, artificial sweeteners, engines and pumps, tractors, rice, lube oil and explosives continue to be regulated.
Labeling and Marketing
Food products require labels in the Indonesian language and expiration date (rather than the standard "best used by" date) are in place but are not being consistently enforced. Some importers have complained that the government appears to be implementing the regulations in such a way as to increase revenue. A product registration regulation is also in place that requires detailed product processing information so as to approach proprietary information. The registration procedure can also be lengthy and expensive. Indonesian importers and U.S. exporters have expressed concern that these regulations could act as non-tariff barriers to imports of packaged food products. | 
