Corporate Tax & Trade
The Ministry of Trade Issues Regulation on Rules for Goods Originating from Indonesia
On 14 October 2014, the government issued Regulation of Ministry of Trade No. 77/M-DAG/PER/10/2014 on Rules for Goods Originating from Indonesia ("Regulation No. 77"). Regulation No. 77 has been effective since 1 January 2015.
Regulation No. 77 is the first national regulation that stipulates the criteria for declaring that goods originate from Indonesia. The regulation is intended to provide requirements for the government to issue certificates of origin.
Under Regulation No. 77, there are two types of rules for goods that originate from Indonesia namely:
1. Preferential Rules for Goods Originating from Indonesia
Preferential rules for goods originating from Indonesia are used to obtain a reduction or exemption of import duty that is given by the importing country. Preferential rules for goods originating from Indonesia include:
a. Preferential rules for goods originating from Indonesia as regulated in a concluded international agreement;
b. Preferential rules for goods originating from Indonesia as enacted by the preference granting country.
2. Non-Preferential Rules for Goods Originating from Indonesia
Non-preferential rules for goods originating from Indonesia are used to satisfy the demand of a country, importer and/or exporter for the exporting goods from Indonesia without getting customs facilities. Non-preferential rules of origin of Indonesia include:
a. Non-preferential rules for goods originating from Indonesia as regulated in a concluded international agreement;
b. Non-preferential rules for goods originating from Indonesia that are not regulated in a international agreement;
Under Regulation No. 77, there are two requirements that must be fulfilled in order to declare that goods originate from Indonesia, as follows:
1. Origin Criteria
To assess the origin criteria, the issuer will verify details of the following aspects:
Corporate Tax & Trade
2 The Ministry of Trade Issues Regulation on Rules for Goods Originating From Indonesia February 2015
a. "Wholly Obtain" Aspect
The goods are considered to satisfy the “wholly obtain” aspect if the
goods entirely consist of Indonesian raw materials or are produced in
Indonesia using only raw materials from Indonesia.
b. Value Added Content Rule
The goods are considered to satisfy the “value added content-rule” if
the goods possess added value based on comparison between
Indonesian raw materials and imported raw materials.
c. Change in Tariff Classification
The goods are considered to satisfy the “change in tariff classification”
if the Indonesian manufactured goods (produced with imported
materials) experience substantial changes which result on the change
of tariff classification of Specific Processing Rule.
The goods are considered to satisfy the “specific processing rule” if
the goods derive from imported raw materials and have undergone a
specific production process.
2. Consignment Criteria
The goods are considered to satisfy the “consignment criteria” if the
goods are directly delivered to the importing country without any transit
a. the transit is performed due to geographical and technical delivery
b. the goods are not traded or consumed during the transit period; and
c. the goods do not undergo any production process during the transit
period except for unloading purposes to preserve the quality of goods.
The Ministry of Trade has not yet issued any implementing regulations for the
Origin and Consignment Criteria for rules for goods originating from
Pending issuance of an implementing regulation, there have been policies
implemented, for example for applicants who apply for Preferential Rules for
Goods originating from Indonesia. In theory, they will be given a Certificate of
Origin Form A while applicants who apply for Non-Preferential Rules for
Goods Originating from Indonesia will be given a Certificate of Origin Form B.
However, if an applicant who applies for a Certificate of Origin Form A fails to
meet the requirements set under Regulation 77, the Ministry of Trade may
automatically issue the Certificate of Origin Form B to the applicant (even
though those applicants did not apply for a Certificate of Origin Form B).
We may see more policies being applied in the near future.
For further information please contact
+62 21 2960 8694
+62 21 2960 8547
Riza Fadhli Buditomo
+62 21 2960 8569
Hadiputranto, Hadinoto & Partners
The Indonesia Stock Exchange
Building, Tower II, 21st Floor
Sudirman Central Business District
Jl. Jenderal Sudirman Kav. 52-53
Tel: +62 21 2960 8888
Fax: +62 21 2960 8999
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