Summary
The Indonesian Directorate General of Customs and Excise (DJBC) issued PER-2/BC/2026 on the Reprocessing or Destruction of Excisable Goods Manufactured in Indonesia for Excise Refund Purposes. The regulation came into force on 16 April 2026 and becomes the single reference point for factory operators wishing to reclaim excise on goods (BKC) whose excise has already been paid.
The new regulation revokes PER-34/BC/2013 as last amended by PER-28/BC/2019. It consolidates rules that were previously scattered and tightens administrative gaps in the refund process.
Key Provisions
PER-2/BC/2026 contains 5 chapters and 18 articles. Highlights include:
- Eligible parties: Article 2 confirms that excise refunds on Indonesian-made excisable goods are available only to factory operators. Importers of excisable goods are not covered.
- Forms of refund: Article 3 recognises two routes, namely reprocessing (repackaging or re-manufacturing), which must take place at the factory, and destruction by burning, crushing, or burying, which may be carried out inside or outside the factory.
- Supervisory team: Forming the supervisory team is now solely under the authority of the head of the supervising DJBC office, regardless of excise value. The team must be established within 5 working days of the approval letter and must consist of at least 2 customs and excise officers.
- Excise tape replacement cost: PER-2/BC/2026 no longer fixes the replacement cost figure in the body of the regulation. Factory operators must still bear and settle that cost before the destruction certificate for excise tape is used.
What Has Changed
Compared to PER-34/BC/2013, the most visible change lies in supervisory governance. Previously, authority to form the supervisory team was split by excise value thresholds. The new rule centralises that authority with the head of the supervising DJBC office and imposes a clear time limit.
For cigarette and tobacco product manufacturers that routinely reprocess defective output, this gives long-awaited certainty over timing. Supervisory teams that were often delayed by delegation issues must now be formed within 5 working days.
On the flip side, removing the explicit replacement-cost figure from the regulation may cause confusion during the transition. Detailed amounts will likely be set in subsequent technical guidance.
Refund Flow at a Glance
Based on PER-2/BC/2026 and existing practice, the refund process through reprocessing or destruction roughly follows this path:
- The factory operator files an application for reprocessing or destruction with the head of the supervising DJBC office.
- The DJBC office issues an approval letter once the application is complete and eligible.
- Within 5 working days of approval, the supervisory team is formed and oversees the reprocessing or destruction.
- After completion, an official record is drawn up as the basis for the excise refund claim and the excise tape replacement cost is settled.
Practical Implications
PER-2/BC/2026 closes a long-standing technical gap that often forced factory operators to wait for excessive periods when reclaiming excise on defective or unfit goods. For tobacco, ethyl alcohol, and MMEA (alcoholic beverage) producers, the 5-working-day cap on team formation provides certainty that was rarely available before.
Factory operators should refresh internal SOPs for managing defective and expired excisable goods, particularly around documentation and coordination with the supervising DJBC office. Compliance officers should also review application templates so they fit the new regulation.
Detailed downstream rules and document formats are expected in follow-up DJBC announcements and JDIH Kemenkeu releases.