How does one do business and deal with import licenses in Indonesia? Like it has always been, it is rather tricky if you wish to import goods to this country. As a foreign investor, there are many things that you need to watch out for. Some of the things include the cultures that apply in Indonesia, the trends, and most importantly – the changes of regulations.

The latest bit about business and import licenses in Indonesia:
According to Neutral News on December 12, 2017, some local companies can now conduct trade activities. They also include obtaining permits for exporting and importing goods. Of course, that as long as the local companies are listed as the members of KADIN (Kamar Dagang dan Industri or ‘Indonesian Chamber of Commerce and Industry).

Then, how about foreign investors or foreign-owned companies? How do they do business and obtain import licenses in Indonesia, especially if they would like to import their goods to Indonesia?
Licenses to import:

If your companies would like to import their goods to Indonesia, they need certain licenses for their eligibility. Without the proper licenses, you will be considered going against the law.

The list of licenses here to import goods to Indonesia is here:

1. API-Umum (API-U)
API stands for Angka Pengenal Importir or ‘General Importer Identification Number’. This is for trade companies that would like to import goods before the goods are traded in Indonesia.

2. API-Produsen (API-P)
API-P is just like API-U. The difference is that this license is for the producers. Industrial companies that need to import goods regarding capital and raw materials need this license. Operational activities and production are supported by them.

3. API-Terbatas (API-T)
In Indonesian, the word ‘terbatas’ means ‘limited’. This Limited Importer Identification Number is for the direct investment company to import goods. By using BKPM facilities, the production is supported by this activity.


API-Khusus (API-K)
This one is for the contractors. A foreign-owned company may have an API, but that does not mean that it can automatically import any goods that they like. There are some commodities or goods that require special treatment, which means also require something else called NPIK (Nomor Pengenal Importir Khusus or ‘Special Importer Identification Number’).

The goods or commodities that are considered in need of NPIK are:

1. Foods, like: rice, corn, soybean, and sugar. 
2. Textile and its products. 
3. Shoes and other footwear items. 
4. Electronic and electrical components.
5. Toys.

Of course, before you have an NPIK, you still have to obtain an API or API-K. Without that, you cannot request for an NPIK.
Regarding this matter, some of the goods or commodities listed above might also require a ‘check-in’ with certain ministries before they can be imported. For example electronic and electronical devices have to receive an official certificate given by Ministry of Communications and Information Technology. They also have to undergo some tests in the laboratory.

It turns out that when it comes to business and import licenses in Indonesia, it is not as easy as most people might think. This is not just about being strict. This is also for safety precautions, just in case there are some goods that may cause harm to Indonesia.

Sources: Smartcolaw