Indonesian Government has regulated the specification of commodities that are allowed or not allowed to be imported, the quota for each commodities and the Import Licence (Angka Pengenal Impor or “API”) through the Ministry of Trade Regulation No. No.70/M-Dag/Per/9/2015 on Import Licenses (“Permendag No.70/2015”). This writing will discuss about the types Import License in Indonesia.
WHAT IS API?
API is license given to individual or company in Indonesia for importing goods/materials. In general there are 2 (two) types of Import Licenses in Indonesia, which are as follow:
a) General API (API-U)
API-U is an import license given to company that wants to import specified goods to Indonesia for general trading purposes.
b) Production API (API-P)
API-P is import license given to company that wants to import goods or materials for production purposes. Because of its nature, the companies which have API-P are prohibited to sell their imported materials.
Referring to Permendag No.70/2015, Import License may be given to individual and business entity (with legal or without legal status), however each entity is only allowed to have (1) one type of API for its import activity in Indonesia. This means, a company which already obtained API-P is prohibited to have API-P and vice versa.
Moreover, API only can be submitted by the head office of the company, but the API is valid for all branches of the company (if the branches company has similar business with the head office company).
WHO IS THE ISSUER OF IMPORT LICENSE?
The issuer of API can be vary depending on the type of the company that will apply the API . The following are institutions that issuing the API.
The Head of BKPM is authorized to issue API for Foreign Investment Company (PMA Company) and Domestic Investment Company (PMDN Company). Please be informed that PMDN Company is different with usual local company because the PMDN Company is a company that already proposed to get special facilites from the BKPM.
WHAT ARE THE REQUIREMENTS?
To submit the Import License, the Company should submit the following documents:
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting is an Indonesian Corporate Legal Services firm. We assist investors in establishing their business in Indonesia through various forms of investment as well as securing investment and corporate licenses for their business.
If you have any question about PMA Company or want to book a consultation for assistance, you can arrange a meeting with our SMART Legal Consulting at: