Export and Import in Indonesia

Indonesia is one of Southeast Asia’s most dynamic trade hubs, offering vast opportunities for export and import activities across commodities, manufacturing, consumer goods, and services. As the largest economy in ASEAN and a member of the G20, Indonesia plays a critical role in global supply chains, supported by abundant natural resources, a growing middle class, and strong government commitment to trade facilitation. For foreign investors, entrepreneurs, and business owners seeking to enter or expand in Indonesia, understanding the legal framework governing export and import activities is not just beneficial it is essential.

Indonesia’s Export–Import Landscape: Why It Matters

Indonesia’s trade sector is a key driver of economic growth. According to official government data, Indonesia consistently records strong trade volumes in sectors such as coal, palm oil, nickel, manufactured goods, food and beverages, textiles, and electronics. At the same time, Indonesia imports capital goods, raw materials, machinery, chemicals, and consumer products to support domestic industries and infrastructure development. For foreign investors, export and import activities often serve as:

1. Market entry strategies before establishing full operations.
2. Supply chain solutions for regional and global distribution.
3. Revenue diversification channels through international trade.

However, Indonesia’s trade regime is highly regulated and continuously updated, making legal compliance a critical success factor.

Legal Basis for Export and Import in Indonesia

Export and import activities in Indonesia are primarily governed by:

• Law No. 7 of 2014 on Trade.
• Government Regulation No. 29 of 2021.
• Minister of Trade Regulations (Permendag), which are frequently updated.
• Customs Law No. 17 of 2006.
• OSS-RBA (Online Single Submission – Risk Based Approach) System.

Foreigners cannot conduct export or import activities individually. All activities must be carried out through a legally established Indonesian company, typically:

• PT PMA (Foreign-Owned Company), or
• PT Local (Indonesian-owned company), in limited structures.

Each company must comply with licensing, reporting, and customs obligations.

Export and Import Licensing Requirements

Under Indonesia’s OSS-RBA system, business licensing is based on risk classification. For export and import activities, the following are essential:

1. Business Identification Number (NIB)

The NIB functions as:

• Company registration number.
• Importer Identification Number (API).
• Customs access credential.

Without an NIB, export or import activities are not legally permitted.

2. Importer Identification (API)

There are two main types:

• API-U (General Importer) – for trading and resale.
• API-P (Producer Importer) – for importing raw materials or capital goods for internal production.

3. Sector-Specific Licenses

Certain goods require additional approvals, such as:

• Food and beverages.
• Cosmetics and pharmaceuticals.
• Medical devices.
• Alcohol and tobacco.
• Chemicals and hazardous materials.

Failure to obtain the correct license may result in shipment detention, fines, or blacklisting.

Restricted and Prohibited Goods: A Critical Compliance Area

Indonesia strictly regulates goods that may be:

1. Prohibited (Larangan) – cannot be imported or exported under any circumstances.
2. Restricted (Pembatasan) – allowed only with special permits or quotas.

Examples include:

• Agricultural products.
• Minerals and natural resources.
• Used machinery.
• Certain food and beverage items.
• Cultural and protected goods.

Foreign investors must always verify HS Codes and the latest Ministry of Trade regulations, as these rules are subject to frequent changes.

Customs, Duties, and Taxes

All import activities are supervised by Indonesian Customs (Bea Cukai). Key financial obligations include:

• Import Duty.
• Value Added Tax (VAT).
• Income Tax (PPh 22 Import).

Export activities may also be subject to export duties, particularly for raw commodities. Accurate customs declarations and valuation are essential to avoid audits, penalties, or shipment delays.

Start Your Export–Import Journey with Confidence

If you are planning to export from Indonesia, import into Indonesia, or establish a trading company, professional legal support is the smartest first step.

Indoned Consultancy provides:

• End-to-end export–import licensing support.
• Company establishment (PT PMA & local PT).
• OSS-RBA and customs compliance.
• Regulatory risk assessment.
• Strategic trade and investment advisory.

Contact Indoned Consultancy today for professional guidance and a free initial consultation. Let our experienced legal and business consultants help you navigate Indonesia’s export and import regulations with confidence and clarity.

Disclaimer

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.