To stimulate the development of Indonesia's agricultural, livestock, and fisheries industries, the government has issued new regulations on import duty exemptions for seeds and seedlings. This initiative is detailed in the Ministry of Finance Regulation (PMK) No. 41 of 2024, effective from 3 August 2024. Encep Dudi Ginanjar, Head of the Sub-Directorate of Public Relations and Education at Customs, noted that the policy addresses the underutilization of import duty exemption facilities for seeds and seedlings in recent years. From 2020 to 2022, the foreign exchange value for importing these items was around IDR 270 billion, with import duties totaling approximately IDR 13 billion. Despite many companies importing seeds and seedlings, the existing facilities under PMK No. 105/PMK.04/2007 have not been optimally utilized. The new regulation aims to simplify the application process and improve efficiency through automation and service commitments. The import duty exemption applies to agricultural, livestock, and fisheries businesses, including plantations and forestry sectors.
Applications can be submitted to the Minister of Finance through the local Customs Office using the Directorate General of Customs and Excise Portal (SINSW). Applications must include details such as the business name and address, taxpayer number (NPWP), quantity, type, estimated price of seeds and seedlings, port of entry, and relevant invoice or document numbers and dates. If the application is complete, the exemption decision will be issued within five working hours for electronic submissions or one working day for manual submissions. The decision is valid for a single import process, with a maximum import period of one year from the decision date. Encep emphasized the role of Customs as a trade facilitator and industrial assistant, aiming to ensure the successful implementation of PMK 41 of 2024. The regulation is expected to provide legal certainty, support the development of the agricultural, livestock, and fisheries industries, and enhance the oversight and service of duty exemptions by prioritizing procedural simplicity and efficiency. "We encourage businesses to maximize the use of import duty exemption facilities for seeds and seedlings, thereby driving the growth and development of Indonesia's agricultural, livestock, and fisheries industries," he concluded.
