Indonesia Import Quota Policy Guide: Requirements, Process, and Product List

I. Eligibility Criteria

1. Company Qualifications

   • Must be registered in Indonesia with a valid import license (API-U for general trade or API-P for production). A single company cannot hold both API-U and API-P licenses; separate entities are required for dual operations.
   • Required documents: Business Identification Number (NIB), Tax Registration Number (NPWP), Articles of Association.
   • Additional certifications for specific products: BPOM approval for cosmetics, SNI certification for steel, and Ministry of Energy and Mineral Resources permits for hazardous goods.

2. Product Compliance

   • Goods must meet Indonesian National Standards (SNI); some require pre-shipment inspections.
   • Certain products need supplementary documents: import plans, distribution contracts, or warehouse proof.

3. Quota Restrictions

   • Import quotas are tied to API types. For example, API-P holders can import raw materials but face sales restrictions (2024 updates allow limited sales of surplus materials or testing products).

II. Application Process

1. Product Classification & HS Code Verification

   • Confirm the product’s HS code and check if it is on the Ministry of Trade’s quota list (e.g., steel, cosmetics).

2. Document Preparation

   • Core documents: NIB, NPWP, Articles of Association, API license.
   • Additional files: SNI/BPOM certifications, import plan, distribution agreements, warehouse lease proof.

3. Submission & Approval

   • Apply for an import recommendation letter from the Ministry of Industry.
   • After review by the Ministry of Trade, obtain the Import Approval Letter (PI), valid for 6–12 months. Some quotas require annual renewal.

4. Post-Import Reporting

   • Submit an Import Realization Report to the Ministry of Trade after the first shipment.

III. Timeline & Costs

1. Processing Time

   • Approval: 1–3 months (may extend during the "red period" from December to March).
   • Quota validity: Most PI letters expire on December 31 of the issuance year.

2. Cost Breakdown

   • API application fee: $500\text{–}$500–1,000 (varies by company type).
   • Certifications: SNI ($2,000\text{–}$2,000–5,000), BPOM ($1,000\text{–}$1,000–3,000).
   • Tariffs: API-P holders pay 2.5% income tax; standard rates apply (e.g., 7.5% for general goods).

IV. Products Subject to Quotas (2024 Update)

Under Ministry of Trade Regulation No. 36/2024, 16 categories now require quotas:

1. Industrial Materials: Steel, alloy steel, plastic raw materials, valves, chemicals.
2. Consumer Goods: Electronics, cosmetics, textiles, footwear, apparel.
3. Special Items: Used machinery, hazardous substances (B2 category), hydrofluorocarbons (HFCs).
4. Agricultural Products: Garlic, cotton fabric, plywood.

V. Case Study: Cosmetic Import Quota

1. Requirements:
   • API-U license, BPOM certification, warehouse documentation.
2. Process:
   • Submit import plan, distribution contract, and BPOM certificate → Ministry of Industry review → Obtain PI letter (1-year validity) → File realization report post-import.
3. Time & Cost:
• Approval: 2 months; BPOM certification ($2,000)+PIfee($2,000)+PIfee(500).
4. This guide provides a comprehensive overview of Indonesia’s import quota policies, helping businesses navigate compliance and optimize trade strategies. Stay updated with Ministry of Trade announcements to mitigate regulatory risks.