Duty Exemption Facility Update for Defense Equipment Procurement (MoFR-45/2026)

The Government has issued Minister of Finance Regulation Number 45 of 2026 (“MoFR-45/2026”) to replace MoFR Number 191/PMK.04/2016 and its amendment, MoFR Number 91/PMK.04/2021. MoFR-45/2026 modernizes and accelerates the import duty exemption licensing for weaponry and security equipment by fully digitalizing the process. Businesses (Third-Party vendors/Specific Industries) must immediately adapt to this electronic system; while the approval process is now significantly faster, it requires absolute accuracy of digital documents.

Key Changes

Through this MoFR, the customs clearance processes will be significantly faster with a guaranteed 5-working-hour time. However, any compliance negligence (e.g., failing to report a contract termination within 30 days) will automatically trigger a service suspension/system block for the vendor.

MoFR-50/2026 becomes effective from 4 September 2026 (60 days after its promulgation on 6 July 2026).