Takehome:
Indonesian import tariff rates on personal care products and cosmetics will be raised to 10%.
On Sep 5, 2018, Indonesian Finance Minister Sri Mulyani Indrawati gave a news briefing announcing that Indonesia would increase import tariffs on 1147 consumer goods ranging from cars to shampoo. The change is designed to curtail imports, protect the domestic market and support a weak Rupiah.
Specifically, the import tariffs on personal care products, cosmetics and kitchenware will be raised from 2.5% to 10%, ceramics, audio speakers and swimwear will be raised from 2.5% to 7.5%, while luxury goods will be raised from 7.5% to 10%. These consumer goods are non-essentials or can be manufactured domestically. Government data shows that goods covered by the rising tariffs are worth $5 billion in the first eight months of 2018 and $6.6 billion last year. Additionally, the tariff rates of 57 imported materials used by domestic manufacturers will remain at 2.5%.
The new tariff rate is expected to be implemented from September 15, 2018. The specific tax items and rates on import consumer goods will be promulgated soon.
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