Does NIB Automatically Count as an API? Here’s What You Need to Know
Corporate Secretary Service Indonesia – If you’re involved in importing goods into Indonesia, you’ve probably come across the term import license NIB vs API more than once. Many business owners still wonder about the actual difference between the two, and whether securing an NIB means they automatically have an API as well. Let’s clear up this common confusion.
What Exactly Is NIB?
The NIB, or Business Identification Number, serves as a primary identity for business entities operating legally in Indonesia. It’s obtained through the Online Single Submission (OSS) system and is a crucial first step in setting up any business activity, including imports.
Under Indonesia’s Government Regulation Number 5 of 2021 on Risk-Based Business Licensing (known as PP 5/2021), the NIB carries multiple roles. According to Article 176 paragraph (5), your NIB doesn’t just act as a general business ID, it can also function as:
- An import license (API), in line with laws governing import identification numbers.
- Access rights for customs activities.
- Proof of membership for health and employment social security programs.
- Compliance with mandatory first-time employment reporting.
So on the surface, it sounds like your NIB does automatically cover your API needs. But it’s not quite that straightforward.
Breaking Down API: Two Types to Note
To better understand the import license NIB vs API relationship, it’s important to know what API itself means. Article 176 paragraph (6) of the same regulation splits the API into two distinct categories:
API-U (General Import Identification Number)
Designed for businesses importing goods they intend to trade or sell directly.
API-P (Producer Import Identification Number)
Intended for businesses importing goods to be used as raw materials, auxiliary items, or capital goods within their own production processes.
The distinction matters, as it impacts what you’re legally allowed to do with the imported products.
How Does This Work in Practice?
While your NIB can serve as an API under the law, it’s not automatically active in that role just by having the NIB document. The technical process still requires attention during the initial registration.
When you apply for your NIB through the OSS system, you’ll reach a section called “Input Completeness of Data.” Here, you’re asked detailed questions about your intended business activities, including whether you’ll be engaging in customs or import operations. It’s during this step that your NIB effectively gets linked to the API function. If you skip or incorrectly fill out this part, your NIB won’t be recognized as an import license, and you could face complications later on.
So, although the framework under PP 5/2021 is designed to make things easier by combining multiple licenses under the NIB umbrella, it still hinges on accurate data entry. Simply put: your NIB becomes your API only when you properly declare your import activities during registration.
A Few Extra Notes on Compliance
Remember that your NIB remains valid as long as you conduct your business according to the regulations set out in PP 5/2021. Violating these rules can result in the revocation of your NIB, and consequently, your rights to import under your API. Always ensure your import activities align with the license you’ve registered for, whether it’s API-U or API-P.
So is it true that the NIB automatically acts as an API? The answer is: not by default. Your NIB can legally function as an API, but only if you’ve correctly completed the import sections during OSS registration. Being clear on how the import license NIB vs API process works saves you time, money, and potential legal trouble down the line.
If you’re unsure about the details or want peace of mind that everything is set up properly, consider consulting a professional. At PortCorp, we help international businesses navigate these requirements smoothly so you can focus on growing your operations in Indonesia.
So, don’t worry about developing your business by setting up a company in Indonesia, because Portcorp is here as a solution for your business, also when you need to know about import license NIB vs API. Portcorp is your comprehensive corporate secretary service in Indonesia. With our presence, you can get a dedicated company secretary to support you to what you need. Our company secretaries will track deadlines and file paperwork so your business keeps running smoothly. Contact us now on +6221-5020-8090 for your business succeed in the future!
