Tiffany & Co has reopened three stores in Indonesia after paying a $6.1 million fine for alleged import violations, signaling heightened customs enforcement risks for luxury jewelry brands operating in Southeast Asia. The case underscores the importance of strict import duty compliance for overseas jewelry buyers sourcing or distributing in the region.
Background of the closure
The Jakarta Customs and Excise Directorate General closed the stores in February 2025 pending checks on whether Tiffany & Co had paid levies on imported goods. An audit followed, resulting in a bill for Rp 97.49 billion ($6.1 million) covering alleged customs violations, including unpaid import duties, VAT, and income tax.
Company response and reopening
Tiffany & Co, owned by LVMH, paid the fine and agreed to comply with all applicable laws and regulations but made no admission of wrongdoing. Finance Minister Purbaya Yudhi Sadewa personally oversaw the removal of the customs seal at the Plaza Indonesia store on June 8, 2025, marking the official reopening.
Broader enforcement context
The minister has led a public crackdown on undeclared high-value goods, and his presence at the reopening is seen as a warning to other luxury brands. The Tiffany case is not isolated: Bening Luxury, a Jakarta-based diamond jewelry store, was closed around the same time and remains closed over similar customs issues.
Compliance and logistics signals
For jewelry importers and distributors, this case highlights the need for meticulous documentation of import duties, VAT, and income tax payments when shipping finished jewelry, findings, or raw materials into Indonesia. Customs audits can lead to prolonged store closures and significant financial penalties, disrupting supply chains and retail operations.
What buyers should watch
Overseas buyers sourcing jewelry for the Indonesian market should review their customs brokers' compliance records and ensure all import declarations are accurate. The government's heightened scrutiny of luxury goods suggests that even established brands face enforcement actions, making proactive compliance a competitive advantage.
Source: Read the original report | Published: June 11, 2025