Trade Regulations for Importing in Indonesia
The import regulations in Indonesia are designed to protect local industries and maintain economic stability. Here are several key regulations that importers need to be aware of:
1. Registration
Importers are required to be registered with the Ministry of Trade and obtain the Importer Identification Number (API). There are two types of API: API-U (General Import License) and API-P (Producer Import License).
2. Import License
There are four types of import licenses in Indonesia: General Import License (API Umum), Producer Import License (API Produsen), Limited Importer Identification Number – API Terbatas (API-T), and Special Importer Identification Number – API Khusus (API-K).
3. Import Prohibitions and Restrictions
Certain goods cannot be imported into Indonesia. These prohibitions include items like weapons, narcotics, pornographic material, and certain chemicals. Some goods are restricted and may require additional permits or must meet specific requirements. You also need to know which port to use for certain goods according to Amendment No. 7th about import ( https://jdih.kemendag.go.id/backendx/image/regulasi/13020427_Permendag_No._24_Th._2019.PDF )
4. Import Documentation
The import documentation in Indonesia includes:
- Commercial Invoice: This document is a bill for the goods from the seller to the buyer.
- Bill of Lading: This is the contract between the owner of the goods and the carrier.
- Packing List: Details about what each package contains.
- Import Declaration: A document declaring detailed, complete, and accurate information about the imported goods.
- Inspection Report: Certain types of goods must be inspected before they can be imported.
5. Customs and Duties
Indonesia applies a tiered tariff schedule for imports. The tariff rates range from 0 to 170%, but the average tariff rate is around 6-7%.
6. Compliance with Standards
Imported goods must comply with the Indonesian National Standard (SNI) and other technical requirements.
7. Importer of Record
Importers must comply with the ‘Importer of Record’ where they are responsible for ensuring the legality of the imported goods, including their compliance with local laws and payment of duties and taxes.
Indonesia’s import regulations can be quite complex, and it’s always recommended to seek professional advice before proceeding with importing goods. Laws can change frequently, and different rules can apply based on the products or sectors involved.