MoF Reg. 45/2026: New Customs Duty Exemption Rules for Defense Equipment Imports

On June 24, 2026, Indonesia's Minister of Finance signed Regulation No. 45 of 2026 on Customs Duty Exemption for the Import of Weapons, Ammunition, Military and Police Equipment, including Spare Parts, as well as Goods and Materials Used to Produce Goods for National Defense and Security Purposes. The regulation was promulgated on July 6, 2026 and takes effect September 4, 2026, replacing MoF Reg. 191/PMK.04/2016 as last amended by MoF Reg. 91/PMK.04/2021.

Although the topic is specific to the defense and security sector, this regulation matters for businesses acting as a Third Party (Pihak Ketiga) in defense equipment procurement — for example, logistics companies, importers, or procurement contractors working under contract with the Ministry of Defense, the Indonesian Armed Forces (TNI), the National Police (Polri), and related agencies.

Who can use this facility

MoF Reg. 45/2026 retains the nine eligible ministries/agencies/bodies, with one new addition compared to the previous rule:

• The Presidential Institution, the Ministry of Defense, TNI Headquarters, and Polri Headquarters
• The State Intelligence Agency (BIN), the National Cyber and Crypto Agency (BSSN), the National Narcotics Agency (BNN), and the National Counter-Terrorism Agency (BNPT)
• The Maritime Security Agency (Bakamla) — a new addition under MoF Reg. 45/2026

The facility also covers goods used in military activities as part of joint military cooperation or exercises, as well as Certain Industries (Industri Tertentu) that import raw materials to manufacture defense equipment for these nine agencies.

What goods are exempt

Coverage spans two categories: weapons, ammunition, and military/police equipment including spare parts; or goods and materials used to manufacture defense equipment. The facility applies to imports from outside the customs area or from bonded logistics centers, including goods released from bonded warehouses, bonded zones, bonded auction/exhibition sites, special economic zones, free trade zones (KPBPB), and the settlement of temporary imports donated to the central government.

Notably, the exemption covers not just standard import duty but also anti-dumping, countervailing, safeguard, and retaliatory duties — both permanent and provisional. The goods must be financed either through the state budget (APBN) or through a grant/donation.

Applying through the DJBC Portal (SINSW)

Applications must be submitted electronically to the Directorate General of Customs and Excise (DJBC) Portal via SINSW (paper submission is only allowed during system outages). Contracts or grant agreements must explicitly state that the price excludes customs duty. Certain Industries must also attach an Import Goods Plan (RIB) approved and endorsed by an authorized official from the partner agency.

Administrative and substantive review takes a maximum of 5 working days, and an approval or rejection decision must be issued within 5 working hours (electronic applications) or 1 working day (paper applications) after review is complete. If DJBC fails to issue a rejection within that window, the application is deemed automatically accepted. Importers have a maximum of 1 year from the date of the Minister's decision to realize the import.

Goods whose contract is terminated must be settled through re-export, return, or destruction, no later than 6 months from the date of the Minister's decision approving the settlement. DJBC also carries out ongoing monitoring and evaluation of all facilities granted — any indication of misuse can lead to a recommendation for further audit by DJBC's oversight unit.

Transition period and effective date

• The regulation takes effect 60 days after promulgation (July 6, 2026), i.e. effective September 4, 2026.
• Applications already filed under MoF Reg. 191/2016 but not yet decided will be processed under MoF Reg. 45/2026.
• Approvals already issued under the old rule but not yet realized remain valid — the realization now follows the new regulation.
• Exemption decisions already issued and not yet fully realized remain valid until their validity period expires.

What this means for your business

• If your company acts as a Third Party/procurement vendor for defense equipment, make sure procurement contracts explicitly state that the price excludes customs duty — this is a mandatory document requirement.
• Set up an internal process to report contract terminations within 30 days; late reporting risks suspending your next facility application.
• If you hold Certain Industry status, make sure your RIB is approved and endorsed by an authorized official from the partner agency before applying.
• Review any ongoing procurement contracts or grant agreements under MoF Reg. 191/2016 — their realization now follows MoF Reg. 45/2026.