What Is Anti-Dumping Duty
Anti-Dumping Import Duty (BMAD) is an additional levy on imported goods whose export price is lower than the normal value (the market price in the country of origin, or production cost plus a reasonable margin) and that cause material injury to a like domestic industry. BMAD is not income tax or value-added tax. It is a legitimate international trade instrument under the Agreement on Implementation of Article VI of the GATT 1994 (Anti-Dumping Agreement), part of the WTO package.
The purpose of BMAD is to neutralize injury, not to raise revenue. Rates are therefore limited to the gap between export price and normal value, calibrated to the level of injury actually suffered by the domestic industry.
Legal Basis
Indonesia's anti-dumping framework rests on several interlocking instruments. Law No. 10 of 1995 on Customs, as amended by Law No. 17 of 2006, particularly Article 23B, authorizes the Minister of Finance to impose additional import duty on goods that injure domestic industry through dumping.
Implementing rules are set out in Government Regulation No. 34 of 2011 on Anti-Dumping, Countervailing, and Safeguard Measures. The PP regulates investigation procedures, exporter defense rights, and the format of final decisions.
For each individual case, the Minister of Finance issues a dedicated PMK that fixes the rate and the enforcement period. The most recent example is PMK No. 14 of 2026, which imposes BMAD on BOPET imports from India, China, and Thailand.
KADI Investigation Mechanism
The Indonesian Anti-Dumping Committee (KADI), housed under the Ministry of Trade, conducts dumping investigations. A typical investigation moves through these stages.
First, domestic industry files a petition setting out preliminary evidence of dumping and injury. The petition must be supported by producers representing at least 25 percent of national production of the like product.
Second, KADI determines whether the petition meets the threshold and formally notifies the exporting country government and the producers concerned.
Third, KADI collects data through questionnaires, on-the-spot verification visits, and hearings. Foreign exporters have the right to file responses and counter-evidence.
Fourth, KADI prepares a final report covering dumping findings (dumping margin), injury, and the causal link between them. The report is submitted to the Minister of Trade and forwarded to the Minister of Finance, who issues the PMK.
How to Calculate Combined Duties
BMAD is calculated as a percentage of customs value (CIF: Cost, Insurance, Freight). The formula is: BMAD = BMAD rate x customs value. BMAD is additional to, not a substitute for, the MFN import duty.
As an example, an importer brings in BOPET worth USD 100,000 (CIF) from an Indian producer subject to a 5 percent BMAD. Assume an exchange rate of Rp16,000 per USD and an MFN duty of 10 percent on BOPET. The total levy at importation works out as follows.
Customs value = USD 100,000 x Rp16,000 = Rp1,600,000,000. MFN duty = 10% x Rp1,600,000,000 = Rp160,000,000. BMAD = 5% x Rp1,600,000,000 = Rp80,000,000. Import value (VAT base) = Rp1,600,000,000 + Rp160,000,000 + Rp80,000,000 = Rp1,840,000,000. Import VAT (12%) = Rp220,800,000. Article 22 income tax (2.5% for API-holding importers) = Rp46,000,000.
Total levies at importation reach about Rp506,800,000, roughly 31.7 percent of customs value.
How to File and Pay
BMAD is paid together with other customs obligations through the Import Goods Declaration (PIB), filed at the customs office at the point of entry. Filing is processed through the Customs Service Computerization System (SKP).
Required supporting documents include the commercial invoice, packing list, bill of lading or airway bill, a certificate of origin (preferential or non-preferential) naming the producer, and proof of payment to the state treasury.
The producer name on the certificate of origin is decisive because BMAD rates are producer-specific. Importers receiving goods from a producer not listed in the PMK are charged the residual rate, typically the highest in the schedule.
Worked Example: PMK 14/2026
PT ABC is a food packaging importer that regularly buys BOPET from producers in Thailand. Under PMK 14/2026, one of its suppliers is subject to a 3.5 percent BMAD while another faces the 7.1 percent residual rate.
PT ABC restructures procurement by shifting 70 percent of import volume to the lower-rate supplier and 30 percent to a Vietnamese producer not affected by BMAD. The result is roughly a 40 percent reduction in additional duty burden compared with no restructuring.