JAKARTA. The government canceled the plan to limit the number of imported goods brought by Indonesian Migrant Workers (PMI), as stipulated in the Minister of Trade Regulation (Permendag) Number 36 of 2023 and amended by Permendag Number 3 of 2024.
The regulation governs the limits on the imported goods that can be carried out by Indonesian citizens returning to their homeland. However, the regulation, which has been in effect since March 10, 2024, has drawn controversy because it is considered detrimental to Indonesian migrant workers.
Therefore, citing cnbcindonesia.com, the government through a Limited Meeting chaired by President Joko Widodo decided to amend the provision again.
The changes include three things. First, it emphasizes that imported goods brought by PMI are not for trade, so they do not need to be regulated in the Permendag on import regulation policies.
Back to DGCE
Second, the regulation of the import of goods belonging to PMI will refer back to Minister of Finance Regulation (PMK) Number 141 of 2023 concerning the provisions on the Import of goods belonging to PMI. Thus, the authorization for the import of goods belonging to PMI will be returned from the Ministry of Trade to the Directorate General of Customs and Excise (DGCE) of the Ministry of Finance.
Referring to PMK No. 141 of 2023, the limit on the import of consignment goods is no longer based on the number of goods carried, but on the import value of consignment goods, which is US$ 1,500 per shipment or US$ 1,500 per year.
Thus, they will receive an import duty exemption facility for the value of goods below this limit. Meanwhile, if it exceeds the limit, import duties and taxes will be imposed.
In general, there are five provisions for the import of PMI shipment goods contained in PMK 141 of 2023, including:
- Goods sent by PMI who are working abroad and not for trade.
- Restrictions on the type and quantity of goods do not apply, but there are restrictions on the value of goods that get Import Duty Exemption, VAT, STLG, and Income Tax Article (ITA) 22 Imports are not collected.
- Goods sent by PMI are granted Import Duty Exemption with a customs value of US$500 per shipment, a maximum of 3 shipments per year of US$1,500.
If it exceeds the value limit, it will be treated as ordinary imported goods (Non-PMI) and subject to import duty of 7.5% (under PMK 141/2023).
Fulfillment of the restrictive provisions is enforced by referring to the provisions of Import Prohibited Goods and HSE.
Third, the government will soon issue Annex III on the Import of goods belonging to PMI of Permendag No. 36/2023 jo.No. 3/3034 which contains the types/groups of goods and limits on the number of goods per consignment.
Personal Luggage
In addition to the import of goods belonging to PMI, the government also agreed to remove the provisions regarding passenger luggage from Permendag 36 of 2023 Jo Permendag 3 of 2024.
According to Secretary of the Coordinating Ministry for Economic Affairs Susiwijono Moegiarso, the government will postpone the implementation of the provisions on the import of commodities that become luggage until regulations and systems in the relevant Ministries / Institutions are ready.
“It was agreed to return the provisions of Permendag No 36/2023 jo. No 3/2024 to the spirit of ease of import under the provisions of Permendag No 20/2021 jo. No 25/2022,” said Susiwijono. (ASP/KEN)
