Customs, Excise, and Taxation

Margono-Ismawan & Co specializes in the legal aspects of Customs, Excise, and Taxation.

Overview

Margono-Ismawan & Co specializes in the legal aspects of Customs, Excise, and Taxation. Our advocates’ legal expertise, combined with formal training in customs, excise, and taxation, enables us to guide clients through the complex and ever-evolving regulatory framework in Indonesia. A thorough understanding of customs, excise, and taxation rules is essential in helping businesses plan operational costs, production expenses, pricing strategies, export-import activities, document processing timelines, and overall tax planning.
Customs, excise, and taxation constitute major sources of national revenue that support state income and economic stability. Due to their strategic importance, these areas are strictly regulated in almost every country, including Indonesia. The regulations are extensive, complex, and dynamic—constantly adjusting to market conditions and state revenue targets.

 

Margono-Ismawan & Co refers to the report issued by the Directorate General of Customs and Excise of the Ministry of Finance (DJBC KEMENKEU), which recorded positive state revenue from the customs and excise sector in 2024 amounting to IDR 300.2 trillion, a 4.9% increase from the previous year. This included import duties of IDR 53 trillion, export duties of IDR 20.9 trillion, and excise revenue of IDR 226.4 trillion—the majority derived from tobacco products (IDR 216.9 trillion), alcoholic beverages (MMEA) (IDR 9.2 trillion), and ethyl alcohol (EA) (IDR 141.1 billion). These figures reached 93.5% of the State Budget (APBN) target. The Ministry of Finance also noted tax revenue of IDR 1,932.4 trillion in 2024, representing 3.5% growth compared to the previous year, while Non-Tax State Revenue (PNBP) reached IDR 579.5 trillion, surpassing the APBN target.

 

The 2024 growth in customs and excise revenue was primarily influenced by factors such as increasing import values, the strengthening USD exchange rate—driving higher import duty revenue—policy relaxation on raw mineral exports, rising crude palm oil (CPO) prices since June 2024—which boosted export duties—and tariff adjustments on tobacco products and MMEA, as emphasized by Vice Minister of Finance Anggito Abimanyu in the 2025 APBN press conference.
Margono-Ismawan & Co has been extensively involved in advising on the establishment and ongoing operations of companies in Industrial Estates and Bonded Zones. Based on our observations, government policies encouraging the development of new industrial zones, revitalization of existing zones, and operational facilitation through Bonded Zone (Kawasan Berikat) incentives have significantly contributed to attracting foreign direct investment in Indonesia.

 

This positive momentum is also supported by the DJBC through its report on a decade of Bonded Zone performance in sustaining national economic growth. The report states:
“Throughout 2024, a total of 1,454 companies actively operated under Bonded Zone facilities, contributing significantly to national economic performance. According to the Economic Impact Study of TPB (Bonded Storage Facilities) and KITE (Ease of Import for Export Purposes) for the 2017–2022 period, annual export contributions averaged IDR 911.10 trillion per year, with the highest growth occurring during the COVID-19 period from 2021 to 2022. Employment absorption reached over 1,752,042 workers per year.”
In the area of taxation, Margono-Ismawan & Co also assists numerous businesses with their operational compliance. Many business actors have expressed concerns regarding Indonesia’s taxation policies, which are often seen as “a dilemma, as revenue targets sometimes lead to tax enforcement that disrupts company cash flow. Failure to comply, however, risks penalties that exceed the original tax obligation.” To support businesses in balancing regulatory compliance with tax obligations arising from their commercial activities, effective tax planning is essential—not only by tax professionals but also by legal experts in taxation.

 

Our firm’s advocates have extensive experience assisting clients in matters related to customs, excise, and taxation. We also maintain strong professional relationships with tax consultants, business advisors, investment advisors, and other trusted individuals in corporate governance. Our advocates are available for further discussions in both Indonesian and English.

 

Margono-Ismawan & Co is well-positioned to deliver comprehensive legal solutions for your business, especially in matters relating to Customs, Excise, and Taxation.

Services in Customs and Excise

  1. Customs Review cross-border and high-frequency business transactions make customs and excise regulations increasingly complex, affecting client operations through rising import/export costs, licensing requirements, documentation obligations, technical procedures, inspections, penalties, and possible detention of goods. Our legal services include:
    – Identifying legal risks in client transactions
    – Reviewing client compliance with customs and excise regulations
    – Providing legal advice on documentation and licensing processes
  2. Customs Litigation and Dispute Resolution businesses involved in international trade often face issues with customs authorities, including disputes over product classification, customs valuation, documentation, or related tax obligations. We assist clients by:
    – Analyzing documents, inspection reports, and case notifications
    – Providing advice and representation during negotiations and meetings with authorities
    – Preparing objection letters, audit responses, appeals, and rebuttals
    – Representing clients in litigation before relevant adjudicative bodies

Taxation Services

  1. Tax Planning
  2. Transfer Pricing
  3. Tax Advice (legal opinion and guidance on taxation matters)
  4. Tax Compliance (for individuals and legal entities)
  5. Tax Review (assessment of business activities from a taxation law perspective)
  6. Tax Dispute Resolution, including audits, objections, appeals to the Tax Court, and judicial review before the Supreme Court
  1. Represented a Foreign Investment Company (PMA) in Interior & Furniture Manufacturing—part of a regional group based in Singapore, Malaysia, and Indonesia—in filing a Judicial Review (Peninjauan Kembali) of a Tax Court decision concerning a Luxury Goods Sales Tax (PPnBM) underpayment assessment (SKPKB). The Judicial Review was granted, resulting in the cancellation of the SKPKB and a declaration of zero LGST payable.
  2. Assisted in the establishment of a Foreign Investment (PMA) Textile/Garment Manufacturing Company in Kendal Industrial Park, including obtaining Bonded Zone facilities.
  3. Represented a PMA Interior & Furniture Manufacturing Company in submitting an application for Verification of Manufacturing Capability for Textile and Textile Products (VKI TPT) to the Ministry of Industry, due to incomplete Fiscal Certificate requirements arising from an ongoing tax dispute before the Tax Court.
  4. Assisted a PMA Textile/Garment Manufacturing Company—licensed to produce apparel for Puma, Adidas, Nike, and Lacoste—in managing BC 2.1 (Local Sales Customs Declaration) during the transition period following job cancellations by buyers affected by COVID-19 and global market instability.

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Please send us your inquiry regarding your business needs, and our team will contact you as soon as possible.

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