Indonesia Regulates the Prohibition of Certain Goods for Import and Export Under the Omnibus Law
Indonesia has updated its list of goods prohibited from import and export. We explain the new categories, when does the prohibition applies, and how to be a reputable exporter or importer in Indonesia.
Indonesia’s Ministry of Trade regulations 18 (MoT Reg 18/2021) provides an updated list of the types of goods that are prohibited from being imported to and exported from Indonesia.MoT Reg 18/2021 is the implementing regulation of the Government Regulation No. 29 of 2021 (GR 29/2021). It makes changes to Indonesia’s rules for the distribution of goods, imports, and exports. To be clearer, GR 29/2021 is an implanting regulation of the country’s Omnibus Law.
What types of goods imports and exports are prohibited by Indonesia?
MoT Reg 18/2021 provides new categories of goods that are prohibited for import, namely, finished hand tools, sugar, ozone-depleting substances, certain drugs and foods, and hazardous and toxic materials, among others. The categories of goods that are prohibited for export include scrap metal, cultural heritage goods, certain agricultural products, subsidized fertilizers, mining products, forestry, and certain agriculture products.
The mining products are further divided into sub-categories covering;
- General goods;
- Goods that are prohibited for export but will come into force only from June 11, 2023; and
The full list of prohibited goods for import and export can be found in the appendix of MoT Reg 18/2021.
Where does this regulation apply?
The prohibition applies to the import of goods from outside Indonesia’s customs area to the free-trade ports and free trade areas, and the export of goods from free-trade ports and free trade areas.
In addition, the regulation also applies to the import of goods from outside the customs area into an exclusive economic zone, the export of goods from the exclusive economic zone to outside the customs area, and the import of goods from outside the customs area to a bonded zone, and the export of goods from a bonded zone to outside the customs area.
How can businesses in Indonesia obtain an import and export license?
The exportation or importation of goods can only be conducted by exporters or importers that have the necessary licenses. Under GR 29/2021, businesses will need to first obtain a Business Identification Number (NIB), which can be done through Indonesia’s Online Single Submission (OSS) system.
The NIB number now doubles up as a company’s export and import license, although businesses will need to obtain other licenses such as:
- Registered importer/exporter;
- Manufacturer importer/exporter; or
- Import/export approval.
The above-mentioned licenses are required depending on the types of goods being imported or exported.
Qualifying as a reputable exporter or importer
Under another implementing regulation of GR29/2021 – Ministry of Trade (MoT) issued MoT Reg 17/2021 – businesses can qualify as reputable exporters or importers in Indonesia, which offers a variety of extra benefits like instant approval of business licenses.
MOT Reg 17/2021 describes a reputable exporter or importer as a business that has shown a high level of compliance to implement government regulations in regard to imports and exports.To be recognized, the business needs to be a valid taxpayer for the last two years and must report on all their import or export they have undertaken for every commodity. Importantly, the business must not be under administrative sanctions or criminal sanctions.
What are the advantages of being a reputable exporter or importer?
Reputable exporters are automatically approved to export nine types of goods and commodities. Some of these are indicated in the table below.
For reputable importers, they are also automatically approved to import 77 types of goods and commodities. Some of these are indicated in the table below.
- Qualifying as a Reputable Exporter and Importer in Indonesia
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