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Resellers fear, retailers cheer as crackdown roils duty-free import trade
A crackdown on duty-free imports underpinned by new regulations is worrying many who have made a living of loopholes, traveling in and out of the country with goods bought abroad and sold on at home.
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Indonesian nationals arriving from Turkey wait for their luggage at Jakarta-serving Soekarno-Hatta International Airport on Feb. 23, 2023. (The Jakarta Post/Soekarno-Hatta Airport Police)
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crackdown on duty-free imports underpinned by new regulations is worrying many who have made a living of loopholes, traveling in and out of the country with goods bought abroad and sold on at home.
Trade Ministry Regulation No. 36/2023 on import procedures, in force since March 10, is seriously complicating the business of Indonesians who bring goods into the country on someone else’s behalf and are commonly referred to as jastiper, a term derived from jasa titip (loosely translated as buying service).
A traveler arriving in Indonesia on an international flight is limited to carrying a maximum of five electronic goods with a total value not exceeding US$1,500. Only two of those goods may be handheld electronic gadgets such as a smartphone or tablet.
In addition to electronic goods, which have always been limited, the new regulation also caps the number of nonelectronic items individuals can bring in, such as two pairs of shoes, five pieces of textile products and two handbags. Previously, under Trade Ministry Regulation No. 25/2022, there was no limit on textiles or clothing.
However, any of those goods valued at more than $500 is subject to import duties, according to the Customs and Excise Directorate General's website.
A Jakarta-based jastiper who will be called Sari for the purpose of this article disapproved of what she said was the lack of clarity in the regulation. She said it should offer clear guidance on how to determine the prices of handbags carried by passengers. Without such clarity, there was a risk of unintentionally penalizing passengers bringing in goods for personal use.
Specializing in reselling clothing and curios from foreign markets, Sari recalls once generating sales of Rp 80 million from one trip.
