Confusion Over Rumours Of New Yacht Duty In Indonesia

Created by doina. Last modified on 2007-08-29 17:49:05
Countries: Indonesia, Malaysia, Singapore

Noonsite has been contacted by concerned sailors regarding rumours of Indonesian Customs charging a bond or tax on visiting yachts of anywhere between 50 and 95% of the vessel's value.

There appears to be some confusion over this matter, and even sources in Indonesia remain unclear as to how the regulations will affect visiting yachts. It would appear that a law was passed in 2003 with the intention of levying a tax on yachts that came into Indonesia and stayed when the owners decided to remain in the country for an extended period. It appears that the wording of the legislation was unclear and when the Indonesian Customs Service came to implement it, their interpretation was that it applied to all visiting yachts and possibly to all other craft as well that enter Indonesia. It is not clear why these regulations are only being enforced now, but it may be for political reasons.

It would appear that the duty can be claimed back on departure from Indonesia but the logistics of claiming it back from one's port of departure, which may be some 1500 miles from one's port of entry, may make this impractical; lines of communication between regional Customs offices may not be reliable.

Organisers of the Sail Indonesia event have informed Noonsite that yachts participating in their event this year were not affected by this law, as organisers liaise directly with Indonesian Customs as to when and where the yachts depart Indonesia. However, in July, when the Rally fleet was in Kupang, yachts not taking part in the event were asked on arriving in Kupang to pay this tax; as a result they immediately left for Singapore.

Bali International Marina has also responded to Noonsite: “It is unfortunately true regarding the bond for yachts visiting Indonesia, but not all Customs enforce the regulation, such as Bali. We are still lobbying the Indonesian Customs to review the regulation. We recommend all yachts to enter Bali as their first port of call.”

Implementation of this new tax would drastically reduce the numbers of cruising yachts visiting Indonesia, and marinas in the Indonesia and the surrounding region as well as other interested parties such as the Sail Indonesia organisers are now lobbying to correct the situation.

Noonsite would like to hear from any yachts that have been affected by this new duty, and will publish any new information as it becomes available.