No, you must establish a PT PMA (foreign-owned company) to apply.
Entering Indonesia’s dynamic market can be a game-changer for foreign businesses. However, as thrilling as the opportunity may be, it comes with a set of regulatory hurdles, particularly when it comes to importing goods. Understanding Import Licenses and Customs Regulation for Foreign Businesses in Indonesia is not just a regulatory requirement, it’s a critical step to ensuring your operations are efficient, compliant, and profitable. This guide breaks down everything you need to know with clarity, legal accuracy, and actionable insight.
Navigating import laws in a foreign country can be overwhelming. But in Indonesia, it’s not optional. Without the right import licenses, your goods could be delayed at customs, or worse seized and destroyed.
Indonesia enforces a strict import regulatory regime to protect local industries, ensure product safety, control national revenue through tariffs, and manage the inflow of foreign goods. If you are a foreign business, whether you’re bringing in raw materials, machinery, or finished products, you need to play by the rules or risk serious consequences.
In addition to legal compliance, having the proper licenses also boosts your credibility with partners, investors, and regulators. It shows you’re serious, professional, and committed to playing by the rules.
To operate confidently in Indonesia, it’s essential to understand the laws and institutions that form the backbone of the country’s import system.
At the heart of Indonesia’s customs framework lies Law No. 17 of 2006, which amended Law No. 10 of 1995 on Customs (Undang-Undang Kepabeanan). This law covers everything from customs valuation and classification to enforcement and sanctions.
Importantly, the law defines both administrative and criminal consequences for violations ranging from penalties of up to 10 times the customs value to potential imprisonment. It’s serious business, and foreign companies must operate within this legal corridor.
Several institutions have overlapping authority over imports:
By understanding who does what, you can streamline your process and reduce costly errors.
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One of the most common pain points for foreign companies is selecting the right type of import license. There isn’t a one-size-fits-all. Here’s what you need to know:
If your company intends to import goods for commercial resale, you’ll need an API-U (Angka Pengenal Importir Umum). This license is suitable for distributors, wholesalers, and retail businesses. Without an API-U, your shipments may be held indefinitely.
What’s more, many Indonesian banks require this license before facilitating import-related transactions. So having an API-U isn’t just about customs, it’s about access to the financial system too.
Planning to import raw materials, machinery, or production equipment for your own manufacturing facility? Then API-P (Producer) is your license.
It’s important to note that goods imported under API-P cannot be sold in the market, they must be used internally. Many foreign manufacturing companies mistakenly assume API-U is suitable for industrial use, which leads to compliance issues later on.
Now here’s where things get tricky. “Lartas” refers to restricted or controlled goods items like electronics, medical equipment, pharmaceuticals, or agricultural products. These imports require additional approvals, permits, and often undergo pre-shipment inspection.
Importing Lartas goods without clearance is a surefire way to invite penalties. Our advice? Always check the Lartas list maintained by the Ministry of Trade before you ship.
Applying for an import license in Indonesia involves multiple steps, and doing it right the first time can save weeks if not months of delays.
Here’s how it typically works:
Many applications get stuck due to vague business activities or mismatched documents. Having legal guidance helps avoid bureaucratic bottlenecks.
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Once your goods arrive at a port, the real test begins. Customs clearance in Indonesia involves six main steps:
Please note that even a small mistake like an incorrectly declared CIF value can trigger audits or penalties.
Some items are simply not allowed into Indonesia, while others come with strings attached.
Before initiating shipment, always run a compliance check through INSW and verify sector-specific regulations. This is where many foreign companies trip up, assuming what’s allowed in one country is fair game in another.
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Many foreign investors, despite good intentions, fall into the same traps:
How to avoid these? Engage a local legal and customs expert from day one. Prevention is better than resolution.
Non-compliance in Indonesia isn’t taken lightly. If your import license is invalid or your documentation is fraudulent, expect serious consequences:
Legal disputes, once escalated, can take months (or years) to resolve and can paralyze your Indonesian operations. So, investing in compliance is not a cost, it’s protection.
From our experience at Kusuma & Partners Law Firm, most issues we resolve could’ve been avoided with better preparation. One client, for example, had goods worth over USD 400,000 stuck at port simply because the HS Code declared was outdated
That’s why we always emphasize early legal involvement. Whether you’re launching an import business, expanding production, or navigating a customs investigation, our firm can help you:
Our mission is to make your Indonesian venture legally secure, operationally smooth, and financially efficient.
Indonesia’s import process may be complex, but it’s far from impossible. With the right guidance, your business can flourish in one of Asia’s most exciting markets. But that journey starts with a single, crucial step getting your import licenses and customs compliance right from the beginning.
Let Kusuma & Partners Law Firm help you navigate the maze of Indonesian import law. We bring clarity to complexity and empower your business to trade with confidence. Contact us today to ensure your import plans are legally solid and commercially sound.
Fill in the form below to get our expert guidance.
“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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