“An import and export activities has increased in Indonesia; licenses are an essential requirement to run the business of import-export.”
As an investment in Indonesia tends to grow, there are a lot of foreigners who intend to invest in Indonesia. Foreign investment in Indonesia is defined as an investing activity conducted by a foreign investor to run a business within the territory of Indonesia. Therefore, if you would like to start a business in Indonesia, a business license is required for any business activities and companies, including exporting and importing goods to Indonesia.
Nowadays, the government has simplified securing an import license; applicants should process the license through an online system. It means obtaining an import license is way more straightforward; the application can be made through the Online Single Submission (OSS). After completing the registration, applicants will get a Business Identity Number (Nomor Induk Berusaha/NIB) with this new system.
Types of An Import License
An import is a process of transporting goods or commodities from one country to another country, and there are three types of import license that can be used to run business in Indonesia, as below:
- API-U (General Import License):
For general trading companies who conduct import activities of fully-made products to be sold/distributed later in Indonesia. This license can be used to import finished products or to trade goods with a third party.
- API-P (Producer Import License):
This license is usually given to manufacturing companies who conduct import activities from raw materials or goods that can be used as support goods for the manufacturing process.
- API-T (Limited Import License)
This license is a limited importer identification number and can be obtained through the Indonesian Investment Coordinating Board (BKPM).
Further, to be able to conduct exporting activities, the exporters are required to have Export Licenses. Pursuant to the general provisions of export, export of goods is grouped as follows:
- For individual exporter who wants to conduct exporting activities in exportable goods required to have NPWP (Taxpayer Identification Number) and other documents specified by regulation to export;
- For business entities required to have Trade Business License (SIUP), NPWP and other documents specified by regulation to export;
- For business entities who wants to conduct exporting activities in restricted goods should obtain Registered Exporter (Eksportir Terdaftar/ET), Export Permit (Surat Persetujuan Ekspor/SPE), Surveyor’s Report (Laporan Surveyor/LS), Certificate of Origin (Surat Keterangan Asal/SKA) and other documents specified by regulation.
The activities on exports and imports in Indonesia are increasing and it is required for the business entities to have license from the Indonesian government for a company or a person to do import or export activities in Indonesia.
Foreign Shares Ownership
Foreign Investment Companies known as Penanaman Modal Asing (PT PMA) are eligible to conduct import and export activities. However, we should know the company’s line of business and check the Negative Investment List (Daftar Negatif Investasi/DNI).
One of the regulations that define a line of businesses which are open is DNI. If PT PMA is only for import and export goods, it can be set up for a 100% foreign-owned import-export company in Indonesia.
Author: Sutria Puti Dwirahayu
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