Tedden Masduki

Jakarta, Dec. 26. The government has just reduced the import tariffs on goods transported via e-commerce to US $ 3 or equivalent to 402,000 dong.
Previously, the 7.5% import duty only applied to imported goods with a value of at least US $ 75 or 1.05 million dong.
Teten Masduki, minister of cooperatives and small and medium-sized enterprises (KUMKM), welcomed the policy. Teden believes that the regulations will have a significant impact on small, medium and micro enterprises.
On Thursday, he said in Jakarta, "Of course, the decline will benefit our SMEs' products."
Prior to the policy, Teden thought that it was still too high, so that foreign products could freely flood our e-commerce market during this period. Moreover, shipping costs in some markets are considered very cheap and even offer free shipping promotions.
As a result, imported goods are much cheaper than local products, with the result that buyers are more likely to buy foreign products.
Since the reduction in import tariffs will not take effect until January 2020, Tedden admits that it has not been able to predict what percentage of local product sales growth will be if the regulations are implemented.
He said, "I don't know yet, we still need to calculate first, and definitely provide huge benefits."
Deni Surjantoro, deputy director of the Customs Department of the Ministry of Finance (Kasubdit), explained the calculation of import duties on foreign goods, but the calculation is not suitable for goods brought directly from abroad (hand-held).
To protect domestic small, medium and micro enterprises, the government levies different import duties on leather bags, shoes and textiles. 15-20% for leather bags, 25-30% for shoes and 15-25% for textiles.
For example, if you buy a 30-dollar purse from an American e-commerce, the shipping cost is $ 8, and the insurance fee is $ 1, then the CIF (cost plus insurance plus shipping) is $ 39.
This price is then converted into Indonesian rupiah, assuming the exchange rate between the US dollar and the rupiah is 14,000 rupiah, which is equivalent to 546,000 rupiah.
For leather bag products, the government levies 15-20% import tax. If the minimum tariff (15%) is used, 546,000 rupees × 15% import tax = 81,900 import tax. The CIF value of imported products is therefore 546,000 + 81,900 = 627,900 dong.
 
This number is then multiplied by the value-added tax (PPN) to get 627,900 shields x 10% = 62,790 shields. Therefore, the total amount of tax that must be paid to the Indonesian Customs is 81,900 + 62,790, which is 144,690 rupiah.