Companies that are engaged in trade, industry or manufacturing usually require goods (whether in the form of machinery or raw materials) that are bought from abroad to support their business. Indonesia regulations regarding imports the latest by the Director General of Customs Regulation No. P-42 / BC / 2008 amendment from regulation of the Director General of Customs No. KEP-07 / BC / 2003 concerning Customs Management Procedures in the Import Sector.
There are three types of Import Licence you can apply :
- API-U (General Import Licence) :
Is given to general trading Company who conduct import activities of fully-made product to be sold/distributed later in Indonesia. This Indonesian license may be used to import finished products or to trade goods with a third party.
2. API-P (Producer Import Licence) :
Is given to manufacturing company who conduct import activities fow raw materials or manufacture support goods to be used in the manufacturing process in Indonesia (this license doesn’t allow Import for selling/distribution, only for production/manufacturing use process.
3. A Limited Import License, also known as API Terbatas (API-T):
This license may be used as a limited importer identification number and is obtained through the Indonesian Investment Coordinating Board (BKPM). Goods imported under an APIT are subject to a reduced withholding tax of 2.5 % compared to the normal rate of 7.5 %.
The moment you registered as Trading Company, hence you will get Business licence Trading. You will be entitled to API-U (General Import license) to import a finished goods/products to be sold/distributed again in Indonesia.
However, if you decide to add manufacturing activities, you will then obliged to revised all your Principle/Business Licence into manufacturing activity. Furthermore, You will need to apply for Industrial Licence (IUI) and Industrial Registered Licence (TDP). This process actually will basicaly change your Trading Company into a Manufacturing Company.
Where for the import licence, You will be then entitled to API-P licence in which you will no longer have rights to conduct import for selling and distribution, rather only for Manufacturing use process. (Because they will expect you will only sell and distributes products from your manufacturing facility in Indonesia.)
Indonesian goverment based on a regulation issued by the Ministry of Trade, as of 2011, regulates that a same company does not allowed to have both API-U and API-P licence. Hence, in other words It is not possible to conduct Manufacturing and Trading under one company. You will need to established 2 Company to be able conducting this activities simultaneously.