Many goods are imported into Indonesia every day. To ensure that all such imports are done in a legal and ethical manner, the government of Indonesia has instituted a variety of import laws. These laws have also played a role in increasing the economic growth of the country.

Indonesia Import Laws

Indonesia is home to one of the world’s largest economies. The country is well-endowed with natural resources such as crude oil, copper, tin, natural gas, and gold. Thus, its per capita income and economic growth rate have been able to increase steadily. One of the other leading factors that has greatly promoted its economic growth is trade. Indonesia’s status one of the world’s largest importers has greatly contributed to the growth of its Gross Domestic Product (GDP). The growth of the country’s GDP has also been attributed to Indonesia’s efforts to integrate its economy with that of the world. This has been done through reducing international trade barriers such as non-tariff barriers (NTBs), a move that has greatly fueled foreign direct investment (FDI).

As one of the leading importers globally, Indonesia is prone to various illegal and unsafe trade practices that pose great danger not only to its economy but also its citizens. To ensure such practices do not affect the economy negatively, the government of Indonesia has created laws which have to be strictly followed by any importer in the country. There have been many laws which have been developed and restrictions which have been imposed with regard to importation activities.

The Most Important Import Laws of Indonesia

While trying to boost its economic growth, Indonesia must ensure that its importation activities do not stifle the growth. Several restrictions have to be put in place by the relevant authorities with regard to security risks and the smuggling of illegal items. As compared to other countries, Indonesia has some of the strictest laws with regard to import restrictions. Therefore, anyone who plans to import any items into Indonesia has to fulfill several requirements.

One must be in possession of a business license to be able to carry out import activities. All business licensing is facilitated by the Ministry of Trade. A Business Identity Number is also issued by the Ministry of Trade. An import license is another mandatory requirement. The import license is divided into two categories; the General Import License and the Producer Import License. An importer conducting business without either of these required licenses has broken the law and will be suitably punished.

If you are having any trouble in obtaining a valid business license in Indonesia, let us at Paul Hype Page & Co assist you. We will guide you through the process of obtaining whichever business license you might need so that you may begin your company’s business operations as soon as possible. Through our services, you can be sure that you will receive the business license you need as soon as possible and without facing any problems.

Importers are also required to provide several documents when conducting business activities. These include customs import declaration, certificate of insurance, packing list, commercial invoice duly signed by the manufacturer as authentic, and a bill of lading in the form three endorsed original copies and four non-negotiable copies. Indonesia considers it important to protect its citizens from harmful and sub-standard products. At the moment, there have not been any discussions to change the import restriction laws; thus, there is no possibility that these laws will soon be changed.

The importation of goods into Indonesia has to follow a due process which includes two major stages. The first stage includes finding a buyer within Indonesia after which both parties are required to decide on the most appropriate terms of trade. However, before this, an importer or distributor with a valid importing license must be sourced. Registering with relevant authorities is necessary before certain products can be imported. All required supporting documents must be duly completed before the importer can proceed to process them.

The clearance process is the second stage of the importation process. Once the importer has completed the necessary payments and had them approved by the relevant authorities, the clearance process begins. The Customs Declaration Form (PIB) is then submitted to the Customs Office alongside its supporting documents. The submission is done for the purposes of obtaining a Customs Clearance Approval. These supporting documents include a customs registration number (SRP), import identification number (API), proof of deposit of custom duty, tax registration number (NPWP), and authorization letter.