G/TFA/ Q/IDN/2 
 
19 September  2023 
(23-6233) Page: 1/2 
Committee on Trade Facilitation  Original:  English  
 
 
REPLIES BY INDONESIA TO THE QUESTION S FROM THE UNITED STATES   
REGARDING INDONESIAN REGULATION 190/PMK.04/2022  
 
The following communication, dated 18 September  2023, is being circulated at the request of the 
delegation of Indonesia.  
 
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1. Indonesia is committed  to implement the WTO Trade Facilitation Agreement by simplifying the 
requirements and expediting the movement of goods across its borders.  It is in this spirit that  the 
Government of Indonesia issued  Minister of Finance regulation or Peraturan Menteri Keuangan (PMK) 
No. 190/PMK.04/2022 , entitled  Import Provisions for Home Use, which enter ed into force on 
14 January 2023 . 
2. The aforementioned regulation applies only to  legal entit ies. The general public, such as 
individual users of smartphones and computers, are not the subject of this regulation.  The regulation  
aims to provide additional certainty  on the process and procedure  in relation to the customs import 
declaration of intangible goods , in this regard software and other digital goods which are transmitted 
electronically , including:  
• simplification of the customs import declaration ( Pemberitahuan Barang Impor or PIB) which 
is the same as import declaration of tangible goods but with fewer element data. The legal 
entity is not required  to enter information  such as shipment, B/L number , and storage;  
• convenience to submit PIB to the nearest customs office where the l egal entity is located or 
domiciled , and no later than 30 days after the payment or transaction of digital goods;  and 
• exclusion of several customs measures, such as submission of inward manifest , unloading 
and storage of imported goods in customs area and temporary goods storage , physical 
inspection , and customs clearance process.  
3. The Government of Indonesia defines goods as tangible and intangible objects that can be 
used, utilized, and traded by consumers or legal entities . Digital goods are any intangible goods in 
the form of electronic or digital information, including both good s that are the result of conversion 
or embodiment, at least in the form of software, multimedia, or electronic data.  
4. Indonesia is in the view that data and code as intangible goods that  are transmitted 
electronically. According to Indonesia Customs Law, so ftware and/or electronic data are goods that 
are object to Customs Law and the delivery of software and/or electronic data for import or export 
may be in the form of electronic transmission.  
5. Since the final two chapters, 98 and 99, as explained in the HS C lassification Handbook are 
intended for national use, the implementation of these chapters depends on the national policy of 
each country. Therefore, Indonesia establishes the Chapter 99 classification for intangible goods, in 
this case digital goods.  
6. According to the HS General Rules of Interpretation (GRI) 1 and its explanation, the 
classification shall be determined by headings and any relevant  Section or Chapter notes. The 
provision of heading 99.01 is "Software and other Electronically Transmitted Digital Goods". G/TFA/Q/IDN/2  
 
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  7. For the purpose of customs clearance, the self -assessment system is implemented, in which 
importer shall declare the imported commodity along with its value and classification.  
8. Such self -assessment system also applies for digital goods of Chapt er 99 where the subdivision 
of HS in that chapter is based on its purpose or intended use and rather than  the binary code. 
Therefore, importer shall declare the HS code by considering some aspects such as the function, 
operation, machine or equipment inten ded for such software, in the customs declaration along with 
the supporting data which will then be verified by Customs.  
9. If a commodity has more than one function and require s the application of GIR 3b (based on 
its essential character), the essential char acter of the product will be determined based on its main 
function, value, and or other parameter as specified  in the  HS Explanatory Notes.  
10. In terms of tariffs, Minister of Finance Regulation No. 26/2022 on Goods Classification System 
and Imposition of Customs Duties on Imported Goods stipulates that the most favored nation (MFN) 
tariff of digital goods transmitted electronically under Chapter 99 (Heading 99.01) is zero percent 
(0%).  
11. As stated in paragraph 2, the PMK 190/2022 will not lead to any trade distortions at the global 
level, nor will it create any undue administrative burdens for the importation of digital goods that 
are transmitted electronically. Indonesia ensures  that the regulation is implemente d in accordance 
with the commitment in TFA Article 10.1.1 in terms of formalities and documentation requirements.  
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