How to Manage Import Permits & Official Requirements in Indonesia?

Corporate Secretary Service Indonesia – For companies planning to enter Indonesia’s growing market, having a proper export import license is one of the most crucial steps before conducting international trade. Whether you’re a local entrepreneur or a foreign investor, managing import permits and complying with local regulations is essential for a smooth business operation.

Before applying for any import or export permits, the first thing a company needs to do is establish a legal business entity in Indonesia. This includes completing the company registration process and securing a Permanent Business License (commonly referred to as Izin Usaha Tetap or IUT). Once these foundational requirements are in place, businesses can move forward to apply for an export import license that allows them to bring goods in or send products out of the country.

Understanding Import Permits in Indonesia

In Indonesia, any company involved in the import business must obtain the appropriate licenses. These licenses are issued by the Ministry of Trade and are meant to regulate and monitor the movement of goods in and out of the country. Depending on the nature of your business, there are three main types of import licenses:

General Import Identification Number (API-U)

This license is for companies that import finished goods for commercial distribution or resale. Businesses with API-U can import products and sell them directly to the local market or third parties.

Manufacturer Import Identification Number (API-P)

This license is specifically for manufacturers who import raw materials, components, or machinery for internal production use. The goods brought in under this license are not allowed to be sold and must be used solely for the company’s manufacturing operations.

Read Also: A Simple Guide to Import Goods into Indonesia: Step-by-Step Process

Limited Import Identification Number (API-T)

API-T is granted under specific investment approval from Indonesia’s Investment Coordinating Board (BKPM). It allows for more limited types of imports, often related to project-based or investment-specific needs. Importers under API-T are subject to a reduced income tax rate of 2.5% on their imports, compared to the regular 7.5%.

Managing Business Activities and Permit Adjustments

If a company originally started as a trading business and later expands into manufacturing, it must update its business permits accordingly. This includes obtaining an Industrial Business License (IUI) and updating the Company Registration Certificate (TDP). Once the business model changes, the company can apply for an API-P but must comply with strict rules, such as not reselling imported raw materials directly.

It’s important to note that, according to the Ministry of Trade, a single business entity cannot hold both API-U and API-P at the same time. If a company needs to engage in both trading and manufacturing, the recommended solution is to establish a separate legal entity for the additional activity.

In short, having a valid export import license in Indonesia is not only a legal requirement but also a strategic asset for businesses looking to grow in the Southeast Asian market. With the right permits in hand, companies can avoid delays, reduce customs risks, and streamline their operations in one of the region’s most dynamic economies.

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 export import license. 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!