Frequently Asked Questions
Common questions about importing goods to Indonesia.
What is an Importer of Record (IOR)?
An Importer of Record is a legally registered entity responsible for all customs compliance when importing goods into a country. In Indonesia, the IOR holds the required API (Angka Pengenal Impor) license and is accountable for duty payments, regulatory compliance, and proper documentation.
Why do I need an IOR in Indonesia?
Indonesian law requires all imports to be cleared by a locally registered entity with a valid import license (API). Foreign companies without a local presence cannot directly import goods. An IOR like Kickrate acts as the legal importer on your behalf.
What is an HS code?
The Harmonized System (HS) code is an internationally standardized numerical classification system for traded products. In Indonesia, HS codes are 8 digits long and determine the applicable import duty rates, taxes, and regulatory requirements for your goods.
How are import duties calculated in Indonesia?
Import duties are calculated on the CIF (Cost, Insurance, Freight) value of goods. The total import cost includes: Import Duty (BM MFN), VAT/PPN (12%), Income Tax/PPH (2.5% with API, 7.5% without), and potentially luxury tax (PPnBM), excise, or anti-dumping duties depending on the product.
What are Free Trade Agreements and how do they help?
Free Trade Agreements (FTAs) are bilateral or multilateral agreements that reduce or eliminate import duties between member countries. Indonesia has 20 FTAs, and many allow 0% import duty if your goods originate from a member country. This can significantly reduce your import costs.
What permits are required for importing to Indonesia?
Beyond the basic import license (API), certain products require additional permits: BPOM approval for food, drugs, and cosmetics; SNI certification for products subject to national standards; quarantine certificates for animal/plant products; and various ministry-specific approvals depending on the product category.
How long does customs clearance take in Indonesia?
Standard customs clearance typically takes 3-7 working days. However, this can vary based on the product type, required inspections, completeness of documentation, and the port of entry. With proper preparation and documentation, Kickrate can often expedite the process.
What is the difference between API-U and API-P licenses?
API-U (Umum/General) is for trading companies that import goods for resale. API-P (Produsen/Producer) is for manufacturing companies that import raw materials or components for their own production. The type of API affects the income tax rate applied to imports.