On 18 August 2026, the Ministry of Finance issued Keputusan Menteri Keuangan 38/MK/EF.2/2026, establishing the official exchange rates for the period 19 August 2026 to 25 August 2026. These rates are mandatory for calculating import duty, Value Added Tax (VAT), Luxury Goods Sales Tax (LGST), export duty, and Article 22 income tax on imports. The rates are computed based on the prevailing JISDOR and cross-currency rates as of the publication date, in compliance with Law No. 10 of 1995 on Customs and Law No. 42 of 2009 on VAT and LGST. The decree provides a comprehensive table covering all major trading partner currencies, ensuring that customs valuations and tax assessments remain consistent across ports and tax offices nationwide.
Key Takeaways
- Weekly Rate Certainty: The fixed weekly rate eliminates daily volatility for importers, allowing accurate cost forecasting for customs clearance and tax liability during the effective period.
- Cross-Border Coordination: Multinational enterprises with intercompany import transactions must apply the same Ministry rates for both customs valuation and transfer pricing documentation to avoid discrepancies that could attract dual scrutiny from customs and tax auditors.
- Audit Trail Requirement: Taxpayers should retain the official decree and system logs demonstrating automatic rate application; during tax audits, the Directorate General of Taxes routinely verifies that the correct weekly rate was used for each transaction date.
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