Charitable Donations to Indonesian Entities - A Guide
It is important to follow Indonesian Customs regulations when gifting goods and equipment into Indonesian. Information can be found at http://www.beacukai.go.id/index.html.
As a general guide:
‘Goods which are necessary to establish or improve buildings of worship, hospitals, polyclinics and/or schools, as well as inventory of items to be fixed’ are covered by Article 25 e. of Customs Law #10/1995 and Ministry of Finance Regulation 70/PMK.04/2012 Article 3 (a).
The following requirements must be met before donated goods can be released to the recipient:
- If goods are being gifted to a private sector entity - Ministry of Finance Regulation 70/PMK.04/2012 applies
- If goods are being donated to a central or local government body - Ministry of Finance Regulation 163/PMK.04/2007 applies.
If the receiver is a private institution and covered by Regulation 70/PMK.04/2012 Article 4(1):
- The receiving institution must be a legal entity domiciled in Indonesia
- The receiving institution must be established in accordance with Indonesian Law
As a general rule, proof to meet the above provisions should be provided.
If Regulation 163/PMK.04/2007 applies i.e. the goods are being donated to a central or local government body, evidence of the above provisions is not required.
In both cases the receiving institution must apply in writing to the Minister of Finance (Director General of Customs). The application must include:
- Detail of the type and amount of goods to be received, including an estimated customs value of the shipment
- A letter from the goods provider (gift giver in Australia) that the procurement is not using Indonesian foreign exchange, and a statement verifying that the goods are a gift and no money is changing hands
- Recommendation from the relevant technical agencies authorised to stipulate regulations concerning the prohibition and/or restriction of imported goods (e.g. the Ministry of Health in the case of medical equipment).
If the above process is followed, the Director General of Customs must provide advice on his decision as to whether the duty exemption applies within 14 days.
If the application for exemption is rejected, the DG of Customs must state the reasons for the decision.
Follow the rules and wherever possible use a qualified/registered importation agent.
The onus is on the receiving institution to meet all exemption application requirements. It is also good practice to have the receiving institution provide a letter verifying that the goods are being gifted and no money is changing hands.
As an Australian donor you should ensure that the receiver has the right documentation in place before committing to send the goods to Indonesia.
The Australian Consulate General (ACG) has prepared the above guidance from information that is publicly available regarding the importation of goods into Indonesia. The ACG is not able to provide advice on specific cases; is not able to influence importation procedures and does not accept any responsibility in importation matters.