Import is one of the trade activities legally transporting goods or commodities from one country to our country. The number of imported goods generally requires interference from customs in sending and receiving countries. Import license in Indonesia needed to import goods to the Indonesian market. It’s only for the particular industry and has restrictions on importing goods that are not related to some sectors of businesses. Therefore, you have to know in advance what business import license suits your business field and how you apply for it.
To get through the customs clearance, you need to hold an import license no matter how small or how big your shipments are.
This article will let you know everything you need to know about and apply for an import business license in Indonesia.
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What is Import License in Indonesia?
Basically, import license in Indonesia is a non-tariff barrier that is used to control the import allowance and items to Indonesia. It is also protecting local producers by restricting the fields of goods imported.
Type of Import License in Indonesia
There are 3 types of Import License in Indonesia:
1. API-U (General Import License)
This license is for fully-made products to be sold or distributed later in Indonesia. It is for the import of finished products or to trade goods with a third party.
2. API-P (Producer Import License)
Imported fowl raw materials or manufacture support goods for the manufacturing process in Indonesia need this license, but it’s restricted to re-selling/re-distribute the goods. In other words, the goods imported are only can use for the production/manufacturing process.
3. A Limited Import License (API-T)
API-T is limited importer identification with the Indonesian Investment Coordinating Board (BKPM) as the issuer. The goods imported are subject to a reduced withholding tax of 2.5 % compared to the normal rate of 7.5 % under this license.
However, since the entry into force of the OSS system, all licensing and licensing processes will be under OSS, including processing API and NIK permits as import permits.
Through this OSS system, each company will get a NIB (Business Identification Number) which also applies as an Importer Identification Number (for import permits) and Customs Identification Number (if the company is processing import permits). The validity period of the NIB is as long as the company continues to operate.
So nowadays, entrepreneurs engaged in import and export no longer need to take care of API and NIK. However, entrepreneurs still have to ensure whether they still need to meet the technical requirements in the field of the relevant authorities in carrying out import and export activities in the field.
Thus, import companies or companies engaged in export activities do not need to go through obtaining API and NIK anymore. However, importers must ensure that they still meet the technical import requirements with the relevant authorities.
Important notes
A regulation issued by the Ministry of Trade regulated about the same company does not allow for API-U and API-P license. Therefore, you need to set up 2 Companies to simultaneously able to conduct your business activities.
Documents Required to Apply for Import License in Indonesia
- Photocopy of Deed of Establishment from Notary Public and its amendments (if any).
- A copy of Ministry of Law and Human Rights Decree and amendments thereof (if any).
- Photocopy of Company Domicile Certificate (SKDP).
- A copy of NPWP and SKT Agency.
- Information related to the classification of business fields changed/included in the NIB.
- Photocopy of ID card of the shareholders.
- Photocopy of NPWP of the shareholders.
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