By Sherine Chen    Photo： CANVA

Indonesia, Southeast Asia’s largest economy, presents significant opportunities for global trade. With a population of over 270 million and growing demand for international goods, Indonesia is an attractive market for exporters. However, importing into Indonesia requires understanding of the country’s complex customs regulations, licensing procedures, and import duties.

Before you importing to Indonesia, make sure to work with a local partner (importer of record) unless you establish a legal entity in Indonesia. Indonesia’s import regulations are overseen by several key government bodies:

• Ministry of Trade (Kemendag) – Issues import licenses and oversees trade policy.
• Directorate General of Customs and Excise (Bea Cukai) – Handles customs clearance and duties.
• National Agency of Drug and Food Control (BPOM) – Regulates food, cosmetics, and pharmaceuticals.
• Ministry of Agriculture or Ministry of Industry – Depending on product type.

In addition, you need to make sure that the importer holds the import license. The importer must be registered with:

• OSS (Online Single Submission) system under BKPM (Indonesia Investment Coordinating Board).
• NIB (Business Identification Number) – A basic requirement to operate legally.
• API (Import Identification Number) – Either API-U (general) or API-P (production), depending on the import purpose.

Indonesia bans or restricts imports of certain goods such as hazardous waste, medical devices containing mercury and some chemical. Therefore, it’s important to use the HS (Harmonized System) to classify your product to determine the import duties and taxes and to check whether the item is restricted or prohibited. When importing to Indonesia,  be prepared to pay import duty, VAT, income tax, luxury goods tax if applicable. Indonesia frequently revises its trade policies to protect local industries or respond to global conditions. Therefore, it’s important to stay updated with policy changes. 

Importing into Indonesia can be a profitable venture if done correctly, but it requires proper planning, licensing, and understanding of the country’s regulatory framework. Due to the complexity of Indonesia’s import system, it’s important to work with a reliable freight forwarder or logistics company to ensure the success of your business.

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