Indonesia Issues Updated Foreign-Currency Tax Conversion Rates

Indonesia’s Finance Ministry issued Minister of Finance Decision No. 53/MK/EF.2/2026, dated 2 November and effective from 4–10 November, setting exchange rates used to calculate VAT, luxury-goods sales tax, income tax and customs duties on foreign-currency transactions. The decision establishes applicable tax-conversion rates rather than introducing a new tax rate. Businesses importing goods or reporting foreign-currency transactions must apply the relevant conversion rules. HPC can support tax-compliance reviews, customs assessments and regulatory advisory.