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Jakarta Post

Small businesses feel the pinch of new import tax regulation

  • Fadli and Eisya A. Eloksari

    The Jakarta Post

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Batam   /   Tue, February 4, 2020   /  04:38 pm
The Jakarta Post Image
Sunrise flower garden at Barelang bridge of Batam Island in Riau Islands province. (Shutterstock/Dwi Yulianto)

A government decision to lower the tax threshold for imported goods has adversely affected small e-commerce businesses and jastip (individual wholesalers), sellers have claimed. Dardani Nainggolan from Batam, Riau Islands, had planned to send emping crackers worth Rp 100,000 (US$7.33) to his relatives in Pekanbaru, Riau, but decided not to after considering the fees involved. “After calculating the tax, I know that sending the chips was not worth it,” Dardani told The Jakarta Post on Friday. “The tax officers assumed the chips were worth Rp 150,000 and they charged PPN [value added tax] plus import duty. But in the end, I decided to cancel the shipment to my relatives.” Finance Ministerial Regulation No.199/2019, which took effect on Thursday, lowered the tax threshold for imported goods to US$3 per item from the previous $75. Taxable imported goo...