The Minister of Finance (the “MoF”) has issued Regulation No. 615/PMK.04/2004 on Management of Temporary Imports (the “Regulation”). It is expected that this Regulation will provide legal certainty as well as fairness that had been lacking in the system of temporary import management.

Temporary imports are goods imported to an Indonesian customs zone that are to be re-exported within a particular time period. To qualify as a temporary import, goods must fulfil several criteria, namely (1) shall consist of goods that will not become expendable during the temporary importation period, (2) sustain its physical form unless it’s physical form is altered due to usage, (3) clearly identified and (4) is supported with documentation clarifying the re-exportation of the goods.

The government can either approve full or partial duties cut. Full duty-free policy will only be enforced toward goods imported for the purpose of exhibitions, seminars, expo, in support of expert scientists, social and education, tourist needs, sport or tournament, reusable export package, model or sample goods, mould,  vehicles used by tourists, irregular vehicle entering Indonesian custom zone,   reconditioning or repair, living animals for circus or exhibition, special equipment for natural disaster,  and sea or air transportation vehicle to be used for local needs. Applicants must submit guarantee fee at the amount of regular duty fee imposed to other goods. Such fee will be reimbursed when the temporary period has elapsed. A permit will be issued for a maximum period of 12 months. However, this may be extended, twice, for maximum periods of a further 12 months.