Kurs Pajak: Tax Exchange Rate in Indonesia for VAT and Imports
Kurs pajak explained: the Finance Minister’s weekly tax exchange rate in Indonesia, where to find it, and which rate VAT, imports and stamp duty use.
References (10)
- The weekly Minister of Finance decree (KMK) on the exchange rate for settling VAT, luxury-goods sales tax, income tax, import duty and export duty, for example KMK 49/MK/EF.2/2026 for 14 to 20 October 2026. Diktum KESATU (operative paragraph 1) sets the rates and Diktum KEDUA (operative paragraph 2) the rule for a currency not listed.
- Fiscal Policy Agency (BKF), Kurs Pajak page and its questions and answers, read 16 October 2026: a decree every week, normally valid Wednesday to Tuesday; the average of the previous week’s rates; a decree may run two weeks over Eid al-Fitr.
- PMK No. 227/PMK.04/2015 on the exchange rate for customs. Article 2(3) and (4), the periodic decree and its use for import taxes, and Article 3, the moment that fixes the rate, including Article 3(a)(1), when the import declaration is lodged at an office with electronic payment.
- Customs Law, UU No. 10 Tahun 1995 as amended by UU No. 17 Tahun 2006. Article 30(3), import duty paid in rupiah.
- VAT Law, UU No. 8 Tahun 1983 as amended by UU No. 42 Tahun 2009. Article 13(1a), when a tax invoice is made.
- PER-11/PJ/2025, in force 22 May 2025. Article 36(1) and (2), VAT on a supply in a foreign currency, and Article 129(1), amounts on withholding slips in whole rupiah.
- PMK No. 81 Tahun 2024. Article 106(1) and (2), payment in rupiah and its exceptions, and Article 455(4), the consistency principle.
- Stamp Duty Law, UU No. 10 Tahun 2020. Elucidation of Article 3(2)(g), a foreign-currency amount on a document.
- KUP Law, UU No. 6 Tahun 1983 as amended by UU No. 28 Tahun 2007. Article 28(4), (5), (6) and (8), on the books.
- Income Tax Law, UU No. 7 Tahun 1983 as amended, including by UU No. 7 Tahun 2021. Articles 4(1)(l) and 6(1)(e) and their Elucidations, on exchange gains and losses.
The tax exchange rate in Indonesia is a weekly rate that the Minister of Finance sets by decree (Keputusan Menteri Keuangan, KMK), so it is also called the KMK exchange rate. It converts foreign-currency amounts into rupiah to settle value added tax (VAT), luxury-goods sales tax and income tax. It does the same for import duty and export duty (paragraph 1 of the decree, for example KMK 49/MK/EF.2/2026).
In Indonesian it is the kurs pajak. Each decree normally runs for one week, Wednesday to Tuesday, and is published on the Fiscal Policy Agency’s tax exchange rate page. In short: VAT uses the rate for the week the tax invoice should be made; goods cleared on an import declaration at a customs office that takes payment electronically, the week the declaration is lodged; and stamp duty on a receipt or settlement document, the Minister’s rate in force when the document is made.
Which rate for which tax
| Rate | Fixed when | |
|---|---|---|
| VAT | Weekly decree | Invoice time |
| Imports | Weekly decree | Declaration lodged |
| Stamp receipts | Minister’s rate | Document made |
VAT. The tax invoice (faktur pajak) shows the VAT in rupiah, converted at the decree rate where you sell in another currency (Director General of Taxes Regulation PER-11/PJ/2025, Article 36(1) and (2)). The tax invoice should be made, for example, on delivery of the goods or services, on payment if payment comes first, or on each progress payment where work is delivered in stages (VAT Law, UU 42/2009, Article 13(1a)). Where the tax invoice should be made on delivery, the rate is the one in force on the delivery date, even if payment follows later. Our guide to VAT invoices and returns covers the rest of the routine.
Imports. At customs offices that take payment electronically, goods released against an import declaration use the rate in force when the declaration is lodged (Peraturan Menteri Keuangan, a Minister of Finance regulation, PMK 227/PMK.04/2015, Article 3(a)(1)). Other cases, such as a supplementary customs document, an official assessment or an office without electronic payment, fix the rate at another moment set out in the same article. Import duty itself is paid in rupiah (Customs Law, Law (UU) No. 10/1995 as amended by UU 17/2006, Article 30(3)). The importer side is explained in importing goods into Indonesia.
Withholding. Withholding slips show amounts in whole rupiah (PER-11/PJ/2025, Article 129(1)). Our note on withholding tax on services covers the rest.
Stamp duty. For a document that records receipt of money or settlement of a debt, a foreign-currency amount is valued in rupiah, at the Minister’s rate in force when the document is made, to see whether it is over the duty threshold (Stamp Duty Law, UU 10/2020, Elucidation of Article 3(2)(g)). Our guide to which documents need a stamp covers the threshold.
How the tax exchange rate in Indonesia is set
According to the Fiscal Policy Agency (Badan Kebijakan Fiskal, BKF), a new decree is set every week, and over the Eid al-Fitr holiday one may run for two weeks. BKF says the rates are based on the average of the previous week’s rates.
A currency the decree does not list still has a rate. Take that currency’s daily spot rate against the US dollar on the international market, at the close of the previous working day. Multiply it by the decree’s rupiah rate for the US dollar (paragraph 2 of the decree).
Your books and exchange differences
Books must be kept in Indonesia and in rupiah, on an accrual or a cash basis, unless the Finance Minister has permitted a foreign language and a currency other than rupiah (General Provisions and Tax Procedures (KUP) Law, UU 28/2007, Article 28(4), (5) and (8)). Keep one accounting method from year to year; changing it needs the approval of the Director General of Taxes (KUP Law, Article 28(5) and (6)). Consistency means using the same method as in earlier tax years, so that profit or loss is not shifted between years (PMK 81/2024, Article 455(4)).
Exchange gains are taxable income and exchange losses are among the deductible costs (Income Tax Law, as amended by UU 7/2021, Articles 4(1)(l) and 6(1)(e)). The Elucidation to both articles says the gains and losses are recognised under the bookkeeping system the company uses, applied consistently, in line with the financial accounting standards in force in Indonesia.
Decree rate and book method
VAT on a tax invoice for a foreign-currency sale and the taxes on an import use the decree rate. Exchange gains and losses are recognised under the bookkeeping system you use, applied consistently (Elucidation to Income Tax Law Articles 4(1)(l) and 6(1)(e)).
How MAM helps
As part of our bookkeeping and corporate tax work, our team converts foreign-currency invoices and withholding at the official tax exchange rate.