Finance Minister Purbaya Issues New Rule: Defence Goods Exempt from Import Duty

Finance Minister Purbaya Yudhi Sadewa has issued Minister of Finance Regulation (PMK) Number 45 of 2026 concerning the exemption of import duty on the import of weaponry, ammunition, military and police equipment, including spare parts, as well as goods and materials used to produce goods for national defence and security purposes. The PMK was enacted on 6 July 2026 and will come into effect on 4 September 2026. PMK Number 45 of 2026 also revokes regulation 91/PMK.04/2021 concerning the Second Amendment to PMK Number 191/PMK.04/2016 on the exemption of import duty on the import of weaponry, ammunition, military and police equipment, including spare parts, and goods and materials used to produce goods for national defence and security purposes. The PMK issued under Minister Purbaya aims to update regulations regarding import duty exemptions for weaponry, ammunition, and military and police equipment for national defence and security needs. The objective of the new rule is to simplify goods import procedures and provide legal certainty. “That to support the procurement of goods to be used for national defence and security purposes, the simplification of goods import procedures, and to provide legal certainty in granting import duty exemptions on the import of weaponry, ammunition, military and police equipment, including spare parts, as well as goods and materials used to produce goods for national defence and security purposes,” reads the consideration of PMK Number 45 of 2026. Through PMK Number 45 of 2026, the government has also included the Maritime Security Agency (Bakamla) as an institution granted import duty exemptions when purchasing weaponry and its supporting equipment. The exemption is granted for goods used for national defence and security purposes by Bakamla.