Starting January 1 next year, Indonesia will lower the threshold at which it begins to impose import taxes on consumer goods sold via e-commerce from $75 to just $3 (about Rp 42,000).

In October last year, the customs reduced the threshold from $100 to $75 per shipment to restrict imports.

Under the new regulations, foreign-produced textiles, clothes, bags, and shoes that cost a minimum of $3 will be subject to a range of taxes with a total rate of 32.5% to 50% of their value.

To monitor transaction data, including the quantity, type and price of goods, in real time, the Finance Ministry will also connect its customized National Single Window (NSW) system with online marketplaces.

“This is to protect firms who’ve been producing goods that are often traded in e-commerce, such as sandals, crafts, and handbags,” Heru Pambudi, the director general of customs and excise at the Finance Ministry, said.