Import Permit Guide for Business Owners in Indonesia

Indonesia is one of Southeast Asia’s largest markets, making it attractive for businesses that rely on importing goods. However, not every product can be freely imported. Certain categories of goods require an import permit (izin impor) to ensure compliance with national laws, safety standards, and trade regulations.

Failing to obtain the necessary permits can result in heavy fines, confiscated goods, or even criminal charges. This article provides a comprehensive guide on which goods require import permits, the step-by-step application process, and the risks associated with illegal imports.

Types of Goods Requiring an Import Permit

Not all products fall under the same regulatory framework. The Indonesian government classifies certain goods as requiring specific permits to ensure public safety, fair trade, and compliance with international agreements.

1. Food and Beverages

• Must comply with BPOM (Food and Drug Authority) regulations.
• Includes processed food, beverages, and food additives.
• Often requires product registration and laboratory testing before approval.

2. Pharmaceuticals and Health Products

• Includes medicines, supplements, and medical devices.
• Require permits from BPOM and sometimes the Ministry of Health.
• Products must meet strict safety and labeling standards.

3. Cosmetics and Personal Care Products

• Imported cosmetics must be registered with BPOM.
• Includes skincare, haircare, and beauty products.

4. Agricultural and Animal Products

• Subject to permits from the Ministry of Agriculture.
• Examples: seeds, livestock, meat, dairy products, and plants.
• Often requires health and quarantine certificates.

5. Alcoholic Beverages

• Controlled under SIUP-MB (Alcoholic Beverage Trading License).
• Highly regulated with limited quotas.

6. Hazardous Materials and Chemicals

• Require permits from the Ministry of Environment and Forestry or related authorities.
• Covers industrial chemicals, pesticides, and toxic substances.

7. Electronics and Telecommunication Devices

• Must comply with SNI (Indonesian National Standards) and import approvals from the Ministry of Communication and Information Technology.

👉 Key insight: Even if a product seems ordinary, businesses must verify whether it falls under restricted or controlled import categories to avoid penalties.

Application Process for an Import Permit

Obtaining an import permit in Indonesia involves multiple steps, usually coordinated through the OSS (Online Single Submission) system and relevant ministries.

Step 1: Company Eligibility

• The company must be a legal entity in Indonesia (PT Local or PT PMA).
• Must have a Business Identification Number (NIB) registered in OSS.
• For trading companies, an API (Angka Pengenal Importir) or Importer Identification Number is required.

Step 2: Determine the Type of Import License

• API-U (General Importer): for companies importing goods for trading/resale.
• API-P (Producer Importer): for companies importing goods for production (raw materials, machinery).

Step 3: Prepare Required Documents

• Company deed and SK Kemenkumham approval.
• NPWP (tax identification number).
• NIB (Business Identification Number).
• API (Importer Identification Number).
• Product-specific documents (BPOM approval, SNI certificate, or quarantine documents).

Step 4: Submit Application through OSS

• Apply online at oss.go.id by uploading documents.
• Select the type of permit based on goods imported.

Step 5: Verification and Inspection

• Relevant ministries may review documents and, in some cases, conduct physical inspections or lab testing.

Step 6: Issuance of Import Permit

• If approved, the permit is issued electronically.
• Companies may then proceed with customs clearance at Indonesian ports.

Risks of Illegal Import

Importing goods without the proper permits exposes businesses to significant risks.

1. Legal Sanctions

• Goods may be confiscated by customs.
• Heavy fines or penalties may apply.
• In severe cases, company representatives may face criminal charges.

2. Business Disruption

• Seized shipments cause operational delays and financial losses.
• Loss of customer trust if orders cannot be fulfilled.

3. Damage to Brand Reputation

• Selling unlicensed or unsafe products undermines credibility.
• Consumers and partners prefer businesses with legal and transparent operations.

4. Restricted Market Access

• Major retailers and e-commerce platforms require proof of compliance (BPOM, SNI, halal certification).
• Without proper permits, businesses cannot expand into regulated markets.

5. Financial Losses

• Beyond fines, companies face costs from destroyed or returned goods.
• Difficulty accessing bank financing due to non-compliance records.

Tips for Smooth Import Permit Application

1. Plan Ahead: Import permits can take several weeks; apply well before shipments.
2. Understand Product Classification: Check if goods fall under restricted, limited, or prohibited categories.
3. Work with Licensed Customs Brokers: They can navigate complex customs procedures.
4. Use Trusted Suppliers: Ensure foreign partners provide correct certificates and documents.
5. Engage Professional Consultants: Especially for complex imports like food, health, or hazardous goods.

Case Example: Cosmetics Importer in Jakarta

A startup cosmetics company in Jakarta wanted to import skincare products from Korea. Instead of rushing to sell, they worked with a consultant to secure BPOM approval and SNI certification. Although the process took several months, once permits were granted, the company was able to expand through major e-commerce platforms, build consumer trust, and avoid the risks of illegal distribution.

This illustrates how investing in compliance leads to long-term business sustainability.

Conclusion

Importing goods into Indonesia offers enormous opportunities, but it must be done legally. Businesses must first identify whether their products require import permits, then follow the official application process via OSS and relevant ministries.

Operating without proper permits may lead to fines, confiscation, reputational damage, and restricted market access. By preparing documents early, complying with regulations, and avoiding shortcuts, entrepreneurs can ensure that their import activities are not only legal but also sustainable for long-term growth.