Indonesia exempts defense goods from import duties under new finance ministry rule

Indonesia's Minister of Finance, Purbaya Yudhi Sadewa, has enacted a new regulation aimed at streamlining the import of defense and security equipment. Peraturan Menteri Keuangan (PMK) Nomor 45 Tahun 2026, issued on July 6, 2026, grants exemption from import duties on weaponry, ammunition, military and police equipment, and related spare parts.

The regulation, which takes effect on September 4, 2026, replaces an earlier rule from 2021. Its stated objectives are to simplify import processes for goods essential to national defense and security and to establish clearer legal certainty for such transactions. The Ministry of Finance emphasized that the update is crucial for supporting the procurement of necessary defense materials.

Notably, the new PMK explicitly includes the Indonesian Maritime Security Agency (Bakamla) among the institutions eligible for these exemptions. This means Bakamla can now import necessary armaments and supporting equipment without incurring import duties, provided the items are intended for national defense and security purposes.

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That in order to support the procurement of goods that will be used for state defense and security purposes, simplify the procedure for importing goods, and provide legal certainty in granting import duty exemption on imports of weaponry, ammunition, military and police equipment, including spare parts, as well as goods and materials used to produce goods for state defense and security purposes.