Released On 6th Apr 2022
Navigating the Import Process for Technology Goods into Indonesia
Indonesia is part of a growing number of underdeveloped countries in Asia seeking to grow a range of sectors to increase its standing in the world, and its overall GDP. Jakarta is the main hub for business activity, providing extensive opportunities for data-centres and technological development at relatively low cost.
With a large population, keen to be educated in Western developing sectors, technology in Indonesia plays a key role in ensuring growth opportunities for business and individuals. Many young people in the Indonesia focus on learning coding and other IT-centric skills to develop careers that they can utilise both in and out of the country.
This has led to an upturn in technology consumption in Indonesia. Couple this with Jakarta being a central byway for Europe, Middle-East and Australasia, close proximity to ports in Singapore and extensive space for expansion, Indonesia is a rising star, attracting interest from global businesses.
Indonesia’s Import Regulations – Networking / IT
In order to start a business and import into Indonesia from an international origin, and to fulfil customs requirements, the importer must be registered with the Investment Coordinating Board (BKPM) and obtain a Business Registration Number (NIB) as a single point of identification.
The next step is to apply for a Business Licence. In Indonesia, this consists of both a Business Licence and a Commercial or Operational Licence.
The Business Registration Number enables businesses to obtain the following:
- Certificate of Company Registration (TDP)
- Customs Registration (NIK)
- Importer Identification Number (API)
Importer Identification Number (API)
When registering an NIB, an importer must choose which API will be chosen. Currently there are two types of API:
- API-U (General API) - Approved for importers that import goods for trading or transfer to other parties and end-users.
- API-P (Producer API) - Approved for importers that import goods for their own use, such as raw materials, supporting materials and/or for supporting the production process.
A single online submission (OSS) can be made in order to be able to import goods on a one time only basis, and must be registered with Directorate General of Customs & Excise (DGCE).
Electronic Interchange on PIB
The importation of any goods must be declared to the Indonesia customs authority using a Customs Declaration form known as a “PIB”, which is completed via an online portal using their NIB licence. Supporting documents will be needed, such as the Commercial Invoice, Packing List, Product Datasheets and Airway Bill (AWB).
The PIB is applied for once the goods are in customs. At this point, the charges, including duties and taxes, are calculated for the shipment. Importers should be aware that Indonesian customs are extremely sensitive to fair market valuation for goods. They use various methods to review the acceptable value of goods if they are suspected of being below the market value.
Indonesia applies daily charges for goods being stored in customs whilst the PIB application is being created and approved.
LARTAS (Larangan dan Pembatasan) translates into English as “prohibitions and restrictions”, and it’s Indonesia’s method of regulating restricted or banned goods being imported into, or exported out of, Indonesia. Communication instruments and devices and electronics are regulated by LARTAS, and therefore an importer must apply for an import licence prior to the import of the goods.
Indonesian Import Duty and Import Taxes
Taxes and duties are based on CIF value (Cost, Insurance and Freight - Read an explanation of this term)
Computation of Import Duty and Import Taxes:
- Import Duty = Customs Duty Tariff x CIF
- Value Added Tax (VAT) = 10% x [CIF Value plus import duty]
- Article 22 Income Tax = Tariff x [CIF plus import duty] the tariff of 2.5%, 7.5% & 10% depending on the kind of goods
The major airports for importing to Indonesia are:
- Soekarno – Hatta Int’l Airport - CGK
- Ngurah Rai Int’l Airport - DPS
- Juanda Int’l Airport - SUB
Indonesian Customs Documents
Common mandatory information on commercial invoice and/or packing list:
- Shipper name, address
- Consignee name, address, contact person name, phone and email
- Payment term
- Shipper’s HS codes of each item
- Country of origin of each item
- Gross weight of each shipping package
Importing goods successfully to Indonesia relies very much on having a thorough understanding of the country's regulations, so if you have any doubts, please ask for our help.
15 June 2021