Indonesian Political, Business & Finance News

Only 10% of Hajj Pilgrims Utilise Tax Exemption for Shipped Goods

| Source: CNBC Translated from Indonesian | Regulation
Only 10% of Hajj Pilgrims Utilise Tax Exemption for Shipped Goods
Image: CNBC

The Directorate General of Customs and Excise (DJBC) of the Ministry of Finance has revealed that the utilisation of the tax exemption facility for shipped goods by Hajj pilgrims remains low. Head of Import Section III at DJBC, Cindhe Marjuang Praja, stated that out of approximately 221,000 Indonesian Hajj pilgrims, only around 17,232 have been recorded using the facility to ship goods to Indonesia, representing just about 10% of the total. “So, in terms of utilisation, we see it’s still quite low compared to our 221,000 Hajj pilgrims, so probably less than 10%, around that figure, slightly under 10%,” she said during a media briefing on Thursday (16/4/2026). As is known, this tax exemption policy has been in place since 2025. The provision is set out in Minister of Finance Regulation (PMK) No. 34 of 2025, effective from 6 June 2025, to facilitate Hajj pilgrims in bringing souvenirs or personal items from the holy land to Indonesia. It was explained that the facility is provided exclusively to officially registered Hajj pilgrims in the government system so that their data can be verified by officers. In detail, the exemption scheme applies to two shipments of goods within one Hajj period. Each shipment has a limit of US$1,500 in FOB value. “So, Indonesian pilgrims stop in two holy cities, both in Mecca and Medina. That means in Medina, if they shop for souvenirs, they can have it shipped. Then when they move to Mecca and shop again, that can also be shipped,” Cindhe said during the media briefing on Thursday (16/4/2026). However, if the shipment value exceeds that limit or the frequency exceeds two times, the excess will be subject to levies. For import duty, the rate applied is 7.5%. In addition, goods are also subject to Value Added Tax (VAT) in accordance with applicable provisions. “So, we made it flat to make the service easier and faster. Then VAT follows the current provisions, which are effectively 11%, although there are certain calculations, but effectively it’s 11%,” she said. In the 2025 Hajj year, garments became the largest commodity in pilgrims’ shipped goods throughout 2025. Recorded, the garment category contributed 32.5% of the total value of shipped goods foreign exchange, equivalent to US$643,920. “Garments, including carpets, blouses, shirts and so on, that’s the most, probably mostly abayas or perhaps gamis for men, for example,” Cindhe said during the media briefing on Thursday (16/4/2026). The top 10 commodities for Hajj pilgrims’ shipped goods (barkir) in 2025 are: - Other garments with foreign exchange value of US$642,920 - Carpets with foreign exchange value of US$391,724 - Dry food with foreign exchange value of US$168,241 - Perfume with foreign exchange value of US$139,342 - Garments from fabrics pos 56 and 59 with foreign exchange value of US$116,859 - Blouses and shirts with foreign exchange value of US$65,865 - Other furniture with foreign exchange value of US$63,317 - Other knitted garments US$49,123 - Baby clothing/accessories US$39,327 - Chests, suitcases, bags etc. US$37,428

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