In January 2020, Indonesia lowered its threshold for goods that can be imported duty- and tax-free: from US$75 to a strikingly low US$3. It was the second adjustment of the so-called de minimis rate in short succession. The government had brought it down from US$100 to US$75 in 2018.

It was a reaction to a growing trend made possible by e-commerce, which has made the flow of goods across borders increasingly complex and difficult to control.

Overseas shipments into Indonesia from e-commerce purchases jumped jumped The Jakarta Post Indonesia to lower threshold for import taxes on e-commerce goods Read more to nearly 50 million packages in 2019, compared with 19.6 million in 2018 and 6.1 million the year before.

AUTHOR

Nadine Freischlad

Nadine is based in Jakarta. She likes stories that capture the impact of digital transformation in Indonesia, with a special fondness for "clicks and bricks" businesses and platform economics. Previous stints with Tech In Asia, KrASIA, bylines in VICE, SCMP, CNN.

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