On 1 September 2026, the Minister of Finance enacted Decision No. 41/MK/EF.2/2026, prescribing the official exchange rate values applicable for calculating import duties, Value Added Tax (VAT), Luxury Goods Sales Tax (PPnBM), export duties, and Income Tax withholdings for the period 2 September 2026 through 8 September 2026. This weekly determination is mandated under Article 15 of Law No. 10 of 1995 on Customs (as amended) and Article 13 of the VAT Law, ensuring uniform valuation for cross-border transactions and domestic tax liabilities denominated in foreign currencies. The rates are derived from the Jakarta Interbank Spot Dollar Rate (JISDOR) published by Bank Indonesia.
Key Takeaways
- Mandatory Benchmark for Customs Valuation: Importers and customs brokers must use the published rates to compute the Customs Value (Nilai Pabean) for goods entering Indonesia during the effective week. Deviation requires prior written approval from the Director General of Customs and Excise.
- VAT and PPnBM Calculation Base: Taxable entrepreneurs (PKP) importing taxable goods (BKP) or utilizing intangible taxable services (JKP) from abroad must apply these rates to determine the VAT and Luxury Goods Sales Tax payable at the point of importation.
- Income Tax Article 22 and 23 Withholding: The rates govern the Rupiah equivalent for calculating Income Tax Article 22 on imports and Article 23 on service payments to non-residents, ensuring consistent withholding obligations for the weekly period.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement