Import Duty Exemption Scheme for Defense Equipment Updated

The government, through the Ministry of Finance (Kemenkeu), has once again exempted import duty on the importation of main defense system equipment (alutsista) and state defense-related equipment. This policy will replace the previous regulation, namely Regulation of Minister of Finance No. 191/PMK.04/2016 on Import Duty Exemptions on the Importation of Weapons, Ammunition, Military and Police Equipment, including Spare Parts, as well as Goods and Materials Used to Produce Items for National Defense and Security Purposes (“ PMK 191/2016 ”).

“The substantive refinements include the goods and materials eligible for import duty exemption, particularly those used to produce items for national defense and security purposes domestically,” said Unan Pribadi, Director of Laws and Regulations Harmonization III, in an interview with Hukumonline.

In addition, the administrative aspects and technical import requirements have also been updated to ensure that the new procedures can operate effectively without reducing oversight. “The harmonization process is currently underway so that it can be signed and promulgated in the near future,” he added.