Bitumen Import Duty in Indonesia
Last updated: 2026-10-04
Bitumen Import Duty in Indonesia: A 2024 Guide for Global Suppliers
Bitumen imports into Indonesia are subject to a 5% Most-Favoured-Nation (MFN) import duty under HS Code 2713.20, plus 11% Value Added Tax (VAT/PPN) and a 2.5% income tax (PPh 22) on the CIF value for importers without an API-U license. Importers holding a registered importer identification number (API-U) and a valid Import Approval (PI) can often secure a reduced or 0% duty rate under ASEAN Trade in Goods Agreement (ATIGA) or other preferential trade schemes, provided they submit a valid Certificate of Origin (Form D or Form E). As of Q1 2024, landed bitumen prices in Indonesia average USD 480–540 per metric tonne (CIF Jakarta), with total tax exposure adding roughly 13.5%–18.5% to the base cost depending on the importer's status.
The Legal Framework: HS Code 2713.20 and Its Duty Structure
Indonesia classifies petroleum bitumen under HS Code 2713.20.00.00 — "Petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals." The 2024 Indonesian Customs Tariff Book (BTKI) assigns the following rates:
| Tax Component | Standard Rate | Notes |
|---|---|---|
| Import Duty (Bea Masuk) | 5% | MFN rate; may be 0% under ATIGA/ACFTA |
| Value Added Tax (PPN) | 11% | Applied on CIF + duty |
| Income Tax Pre-payment (PPh 22) | 2.5% | For importers with API-U; 7.5% without |
| Luxury Goods Tax (PPnBM) | 0% | Bitumen is not classified as a luxury good |
The ATIGA (ASEAN Trade in Goods Agreement) allows importers to bring in bitumen at 0% import duty if sourced from an ASEAN member state (e.g., Singapore, Malaysia, Thailand) and accompanied by a Form D Certificate of Origin. Similarly, the ASEAN-China FTA (ACFTA) offers 0% duty for Chinese-origin bitumen with a Form E.
Assuming a CIF price of USD 500/MT:
| Scenario | Duty | PPN | PPh 22 | Total Tax | Effective Landed Cost |
|---|---|---|---|---|---|
| MFN, API-U holder | USD 25 | USD 57.75 | USD 13.13 | USD 95.88 | USD 595.88 |
| MFN, no API-U | USD 25 | USD 57.75 | USD 39.38 | USD 122.13 | USD 622.13 |
| ATIGA (Form D), API-U | USD 0 | USD 55.00 | USD 12.50 | USD 67.50 | USD 567.50 |
| ACFTA (Form E), API-U | USD 0 | USD 55.00 | USD 12.50 | USD 67.50 | USD 567.50 |
Key takeaway: Preferential trade agreements can save importers USD 28–55 per tonne, a critical margin in Indonesia's highly competitive bitumen market where annual demand exceeds 4.5 million tonnes.
Current Import Trends and Volume Data (2022–2024)
Indonesia remains a net importer of bitumen. Domestic production from Pertamina's refineries (Cilacap, Balongan, Dumai) covers approximately 35–40% of national demand, leaving a gap of about 2.5–3.0 million tonnes filled by imports.
| Year | Total Bitumen Imports (MT) | YoY Change | Top Source Countries |
|---|---|---|---|
| 2022 | 2.68 million | +8.2% | Singapore, Malaysia, South Korea, China |
| 2023 | 2.91 million | +8.6% | Singapore, South Korea, China, Thailand |
| 2024 (H1) | 1.52 million | +4.3% | Singapore, South Korea, China, UAE |
- Singapore: 0% duty under ATIGA. Largest supplier, ~28% market share. Form D required.
- Malaysia: 0% duty under ATIGA. ~15% market share. Growing due to competitive pricing.
- South Korea: Standard 5% MFN duty. ~22% market share (despite the duty, due to quality consistency).
- China: 0% duty under ACFTA. ~18% market share. Form E required.
- UAE / Middle East: 5% MFN duty applies. ~10% market share.
Important nuance: Even with a 0% preferential rate, importers must ensure the Certificate of Origin is validated by the issuing authority and matches the bill of lading, invoice, and packing list. Discrepancies trigger the 5% MFN rate retroactively plus administrative penalties of up to 100% of the underpaid duty.
How to Calculate Your Bitumen Import Duty in Indonesia (Step-by-Step)
Calculating the exact duty and tax burden requires a clear sequence. Here is the standard formula used by Indonesian customs brokers and freight forwarders:
Step 1: Determine the Customs Value (Nilai Pabean)
- Customs Value = CIF Price (Cost, Insurance, Freight) in USD converted to IDR at the prevailing BI middle rate.
- Example: USD 500/MT × 15,000 IDR/USD = IDR 7,500,000/MT.
Step 2: Apply Import Duty
- MFN: 5% × IDR 7,500,000 = IDR 375,000/MT.
- ATIGA/ACFTA: 0% × IDR 7,500,000 = IDR 0.
Step 3: Apply VAT (PPN)
- VAT Base = Customs Value + Import Duty.
- MFN case: IDR 7,500,000 + IDR 375,000 = IDR 7,875,000.
- VAT = 11% × IDR 7,875,000 = IDR 866,250/MT.
- ATIGA case: IDR 7,500,000 + 0 = IDR 7,500,000.
- VAT = 11% × IDR 7,500,000 = IDR 825,000/MT.
Step 4: Apply Income Tax (PPh 22)
- PPh 22 Base = Customs Value + Import Duty (same as VAT base).
- With API-U: 2.5% × IDR 7,875,000 = IDR 196,875/MT.
- Without API-U: 7.5% × IDR 7,875,000 = IDR 590,625/MT.
Step 5: Total Landed Cost per MT (IDR)
- MFN + API-U: 7,500,000 + 375,000 + 866,250 + 196,875 = IDR 8,938,125.
- ATIGA + API-U: 7,500,000 + 0 + 825,000 + 196,875 = IDR 8,521,875.
Savings with ATIGA/ACFTA: IDR 416,250 per MT (≈ USD 27.75).
- Form D (ATIGA) or Form E (ACFTA) — original, signed by authorized body.
- Bill of Lading (B/L) — consignee must match importer name.
- Commercial Invoice — CIF terms preferred; FOB requires freight/insurance proof.
- Packing List — net weight must match B/L.
- Import Approval (PI) from Ministry of Trade — mandatory for bitumen.
- API-U — general importer identification number.
- Surveyor Report (Laporan Surveyor) — mandatory for certain HS codes; check latest regulation.
Pro tip: Indonesia's National Single Window (INSW) system now requires electronic submission of all documents. Physical Form D is still required for verification but must be uploaded in PDF format.
Penalties, Audits, and Compliance Risks
Indonesian customs (DJBC) has intensified audits on bitumen imports since 2022 due to under-invoicing and misclassification cases. In 2023, the Directorate General of Customs and Excise issued 147 audit findings related to bitumen, recovering IDR 312 billion in unpaid duties and penalties.
| Violation Type | Penalty | Frequency (2023) |
|---|---|---|
| Under-invoicing | 100%–200% of duty shortfall | 62 cases |
| Invalid Form D/E | Retroactive 5% MFN + 50% fine | 41 cases |
| Misclassification (2713.20 vs 2715) | 100% of duty difference + 50% fine | 28 cases |
| Missing API-U | 7.5% PPh 22 + administrative fine | 16 cases |
Critical compliance note: Bitumen is not the same as "asphalt" under HS 2715 (bituminous mixtures). Importers attempting to classify bitumen under 2715 to avoid the 5% duty face immediate red-flag audits and potential criminal charges under Article 103 of the Customs Law.
As of 2024, there are no active anti-dumping (AD) or countervailing duty (CVD) measures on bitumen imports into Indonesia. However, the Indonesian Anti-Dumping Committee (KADI) has monitored South Korean and Chinese bitumen since 2021. Importers should monitor KADI announcements quarterly.
FAQ: Bitumen Import Duty in Indonesia
Q1: What is the current import duty rate for bitumen (HS 2713.20) into Indonesia?
The standard MFN import duty is 5% of the CIF value. However, importers sourcing from ASEAN countries (Singapore, Malaysia, Thailand) can get 0% duty under ATIGA with a valid Form D. Chinese-origin bitumen also qualifies for 0% under ACFTA with Form E.
Q2: How much VAT and income tax do I pay on bitumen imports?
VAT (PPN) is 11% of the customs value plus import duty. Income tax (PPh 22) is 2.5% for API-U holders and 7.5% for non-API-U importers. These are prepayments creditable against your annual corporate income tax.
Q3: Can I avoid the 5% bitumen import duty legally?
Yes, by using preferential trade agreements. If you import from Singapore, Malaysia, or Thailand with a Form D (ATIGA), the duty drops to 0%. From China with a Form E (ACFTA), it is also 0%. Ensure the Certificate of Origin is valid and matches all shipping documents.
Q4: What happens if my Form D is rejected by Indonesian customs?
If Form D is rejected, the import is reclassified to the 5% MFN rate, and you must pay the duty plus a 50% administrative penalty on the shortfall. Repeated violations can lead to a blacklist from preferential treatment for 12 months.
Q5: How long does customs clearance take for bitumen imports in Indonesia?
With complete and valid documents, customs clearance at major ports (Tanjung Priok, Tanjung Perak, Belawan) takes 3–5 working days. Incomplete documents or red-channel inspections can extend this to 10–14 days, incurring demurrage costs of USD 1,500–2,500 per day for bulk vessels.
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