The Indonesian Finance Ministry has doubled the individual duty free value allowance covering goods purchased by Indonesian ‘individuals’ into the country from US$250 to US$500 per person, according to statements by the country’s Finance Ministry to local press.

 

This increase means that each individual amongst all adult family members travelling together will be entitled to bring home goods to the value of $500.

 

This is potentially very good news for Singapore Changi Airport in particular, since its biggest visitor nationality comprises Indonesians who are traditionally very good spenders.

 

CERTAIN RESTRICTIONS WILL APPLY

As part of the new rules, there will also reportedly be volume limits applied on the number of some items that Indonesians will be able to purchase abroad and bring back, without being penalised. These rules are expected to apply to certain electronics, jewellery, clothing, watches and bags in particular.

 

This regulation was still awaiting formal sign off approval from Indonesia’s Finance Ministry as this report went to press.

 

The new regulations also follow a crackdown by Indonesian authorities on ‘traders’ travelling abroad who specifically buy products abroad at lower prices only to sell at a profit by undercutting domestic retailers when they return to Indonesia.