Makarim & Taira S.
  May 24, 2011 - Indonesia

Indonesia's New Import Licensing Regime

Companies wishing to import goods for their businesses are required to have an Importer Identification Number (Angka Pengenal Importir – “API”). Under Trade Minister Regulation No.45/M-DAG/9/PER/2009, as amended by Regulation No.17/M-DAG/PER/3/2010 (“Regulation No. 45”), the API regime is now divided into two types, the API-U and the API-P:
  1. General API (Angka Pengenal Importir Umum or API-U) issued to importers importing goods for the needs of their business activities in trading or transferring goods to other parties. The API-U is issued by the relevant Head of the Provincial Trade Service Office (Kepala Dinas Perdagangan Provinsi); and
  2. Producer API (Angka Pengenal Importir Produsen or API-P) issued to importers importing goods to be used by the producer itself as raw materials, supporting materials, and/or to support production. These imported goods may not be traded or transferred to other parties. For investment companies (PMA and PMDN companies), the API-P is issued by the Head of the Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal or BKPM), who may delegate. For business entities or contractors in the energy, oil and natural gas, minerals and other natural resource management areas, based on cooperation agreements with the Indonesian Government, it is issued by the Director General of Foreign Trade, Ministry of Trade. In other circumstances than those outlined above, it is issued by the head of the provincial trade services office.
The transitional provisions of Regulation No. 45 required holders of the old API-U, API-P, APIT, APIT equivalent to APIU, APIT-U or API-K which had not yet expired on their face to submit an application for the relevant new license by 28 February 2011 (as extended by Ministry of Trade circular 41/M-DAG/SD/1/2011).

Importers may only have one of these two types of API but there is some provision for manufacturers to import finished goods (p. 3, sidebar). An API is valid on the entire Indonesian territory, including for branch offices conducting the same type of activities. The API is valid for as long as the importer conducts its activities. However, the importer must re-register its API with the issuing institution every five years as of its date of issuance. Regulation No. 45 provides a list of circumstances in which an API will not be required but prior approval of the Director of Imports in the Ministry of Trade will be required in most instances. Quarterly reporting obligations apply and a range of corporate changes must be reported (such as changes in the license-holders name, address, its board of directors, etc.). Failure to comply can see the license frozen and repeated failure to comply can see it revoked. The following may be reasons for the revocation of an API:
  1. the license is frozen twice;
  2. the license is not re-registered when required, within 30 days of freezing;
  3. reporting requirements are not complied with, within 30 days of freezing;
  4. incorrect information was supplied in the application
  5. the importer does not take responsibility for the imported goods;
  6. the importer violates the prevailing import laws and regulations;
  7. abuse of import documents;
  8. proven guilty of criminal act related to the use of the API with a final court decision not subject to appeal.
2 years after revocation, the license holder may re-apply.


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