The Ministry of Finance regulation MK/EF.2/2026 determines the reference exchange rates that will be used to calculate customs duties, value‑added tax (PPN), and other tax assessments for the period from 22 July 2026 through 28 July 2026. The decree publishes the official rates for major foreign currencies—including the US Dollar, Euro, Japanese Yen, and Chinese Yuan—against the Indonesian Rupiah, and it explains the methodology for converting transaction values into Rupiah for tax purposes. By fixing these rates in advance, the government seeks to improve fiscal predictability, ensure accurate tax collection, and reduce disputes between taxpayers and tax authorities over conversion discrepancies. The regulation also clarifies the responsibilities of importers, exporters, and customs officials: importers must recalculate their tax liabilities using the published rates for all relevant transactions occurring within the effective window, while customs officials are required to verify that the correct rates have been applied during duty assessments. Additionally, taxpayers must retain supporting documentation, such as invoices and payment receipts, for a minimum of five years to substantiate the used exchange rates in the event of an audit. Failure to comply may result in additional tax assessments, penalties, or interest charges. Consequently, businesses are advised to update their accounting and invoicing systems, train finance staff on the revised procedures, and monitor official gazette releases for any subsequent adjustments before the rates expire.
Key Takeaways
- Exchange Rate Publication: Official rates are published for the period 22‑28 July 2026.
- Effective Dates: Rates apply from 22 July to 28 July 2026.
- Compliance Requirement: Taxpayers must recalculate liabilities using the new rates and retain proof of application.
Source: Read Original Announcement