Requirements to Become an Importer: Import Business License in Indonesia

Corporate Secretary Service Indonesia – Entrepreneurs need to complete the requirements to become an importer for import business in Indonesia. These requirements must be attached to obtain an import business permit or license, both for local and foreign entrepreneurs. Without an import business license or permit, the company cannot operate optimally. Customs can withhold goods from entering Indonesia if there is no import license, regardless of the size or type of goods.

Complete the requirements to become an importer when forming an import company. Make sure you know which import license is suitable for your company’s needs and characteristics.

Indonesia’s Trade Economy Outlook

In 2017, Indonesia ranked eighth in the world’s largest economies by purchasing power. Over the past eight years, Indonesia has averaged economic growth of 5% per year. Consistent growth and the availability of natural resources helped Indonesia become an upper-middle-income country. Trade activities play an important role in Indonesia’s economy, with exports and imports totaling 37% of GDP. Establishing an importing business entity can maximize the opportunity. Both local and foreign businesses can participate in trade by appointing agents, distributors, or importers.

What are the Requirements to Become an Importer?

The requirements for importing goods for local and foreign companies are fairly easy. Business actors only need to complete data based on their business documents.

1. Company Deed: A legal document that shows the establishment of the company.
2. Business Identification Number (NIB): A number that serves as a company registration mark.
3. Taxpayer Identification Number (NPWP): A number used for tax purposes.
4. Trade Business License (SIUP): serves as the basis for import licenses related to the shipment of products to Indonesia from abroad. In the business license, there are provisions regarding the number of goods that are authorized to be imported.
5. Importer Identification Number (API): Required to import goods into Indonesia.
6. Authorized Importer Registration: Accompanied by an importer registration number issued by the Ministry of Trade.

Read Also: 5 Plantation Products Exported from Indonesia

Types of Import Permits that are Legal in Indonesia

Following the regulation of the Indonesian Ministry of Trade, the Importer Identification Number or Angka Pengenal Importir (API) is a mandatory license for importing companies. Today, importers also act as representatives of foreign manufacturing companies, opening up business opportunities that boost domestic economic growth.

Without an API, import activities in Indonesia are illegal. The API serves as a data record of importers and their business activities. All import activities are prohibited if the importer cannot present an API. Importing companies need to understand the two types of APIs: General API (API-U) and Producer API (API-P). Since January 1, 2016, the Minister of Trade issued two new import license regulations and changes related to trade activities in Ministry of Trade regulation 70/2015.

1. API-U

API-U is useful for licensing companies to import goods that are used for trading purposes directly in Indonesia. Before the new regulation was officially implemented, companies with an API-U could only import a certain group of goods specifically described in the Trade Regulation.

Now API-U holders can import goods from several other sections with HS codes. In addition, the requirement to be an importer with an API-U is no longer necessary to have a special relationship with an overseas supplier as before. These special relationships used to be required and formed through several agreements, such as supplier, agency or distributor agreements, and other business agreements.

2. API-P

API-P is an import license that industrial companies need to import goods from abroad. These imported products can only be used for internal purposes such as manufacturing. Typically, goods imported under API-P are raw or supporting materials for production and operational activities. Based on Trade Regulations, imported goods for industries under API-P may not be sold directly to third parties. However, there are two exceptions that make this rule inapplicable, especially if the imported goods are received with import duty exemption incentives.

The company must show evidence of using the imported goods for internal purposes for at least 2 years after the date of the Import Declaration Form, or inform that the goods are only used for marketing trials or as a complement to business development in Indonesia.

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 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!