Stricter Scrap Tariffs Incoming: Duty-Free Scheme Introduces 65% Preferential Rate Cap for Residual Manufacturing Goods

The Minister of Industry (“ Minister ”) has issued Regulation No. 13 of 2026 (“ Amendment ”) on the Amendment to Regulation of the Minister No. 2 of 2023 on Implementing Guidelines for the Utilization of Raw Materials Subject to Import Duty Tariffs under the User-Specific Duty-Free Scheme (“ USDFS ”) [1] of the Framework of Agreement Between the Republic of Indonesia and Japan for an Economic Partnership (“ Regulation 2/2023 ”). The Amendment officially came into force on 9 June 2026. [2]