An Overview of Import License in Indonesia (2016 Update)

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An Overview of Import License in Indonesia (2016 Update)

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.

  1. The Head of Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM)

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.

  1. The Directorate General of Foreign Trading, Indonesia Trade Ministry (Based on Diretorate General of Foreign Trading No.01/Daglu/per/2014 the authority to issuethe API then is delegated to One Stop Services in each Province in Indonesia) The One Stop Services issues API for company or contractor in energy, oil gas, mining or another natural resources companies which conducting their business under cooperation contract with Indonesian government.
  2. The Head of Trade Department in each province in IndonesiaThe Head of Trade Departement has an authority to issue API-U and also API-P for local company in Indonesia.

WHAT ARE THE REQUIREMENTS?

To submit the Import License, the Company should submit the following documents:

  1. Articles of Association of the Company, and any amendments of it
  2. Approval Letter or Notification Letter from the Ministry of Law and Human Rights on the Articles of Association and the amendments
  3. Taxpayer Identification Number (NPWP)
  4. Company Registration of the Company (TDP)
  5. Trading Business License from the BKPM (if the applicant wants to obtain the API-U)
  6. Trading Business Certificate (SIUP), if the applicant is an local company
  7. Principle License from the BKPM
  8. Industrial License from the BKPM (if the applicant is an industrial based company)
  9. Expatriate Work Permit (if the applicant that will sign the API is an expatriate)
  10. Reference Letter from Foreign Exchange Bank (if want to secure the API-U)
  11. Identity Card or Passport the API applicant
  12. Photographs sized 2×4 (red background)
  13. Cooperation Contract with government/ agency/special task force in energy business
  14. Recommendation letter from the government/agency/special task in energy business.

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:

E: info@smartcolaw.com

H: +62821-1234-1235

 

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