On July 20, 2018, the Minister of Trade of the Republic of Indonesia issued Regulation of the Minister of Trade of the Republic of Indonesia Number 75 Year 2018 concerning Importer Identification Number (“Permendag 75/2018“). This new regulation is issued to implement Government Regulation Number 24 Year 2018 on Integrated Business Licensing Services through Electronic Systems (“PP 24/2018“). This causes Regulation of the Minister of Trade No. 70/M-DAG/PER/ 9/2015 concerning Importer Identification Numbers to be no longer relevant. Under this regulation, there is a mechanism adjustment in obtaining API with the mechanism of Electronic Integrated Business Licensing Service (“OSS Agency“).
Import activities can only be carried out by importers who have an Importer Identification Number (“API“). The API is divided into two, namely the General API (“API-U“) and the Manufacturer API (“API-P“). API-U is given to companies that import certain goods for trading purposes. Meanwhile, API-P is given to companies that import goods that will be used as capital goods, raw materials, auxiliary materials, and / or materials to support the production process. Goods imported using API-P are prohibited from being traded or transferred unless the goods are granted import duty facilities and have been used for at least two years from the date of import customs notification.
Since the issuance of PP 24/2018, the Business Identity Number (“NIB“) issued by the OSS Institution can also apply as API-U or API-P. NIB is a business identity used by a business actor to obtain a Business License and Commercial or Operational Permit from OSS Institution. Therefore, by obtaining NIB, importers no longer need to apply to obtain API from the Ministry of Trade. Meanwhile, API-U and API-P owners who have yet to have an NIB must register to the OSS Agency to obtain an NIB that can apply as an API for a maximum period of 6 (six) months after this regulation is enacted.
Although the API is issued by the OSS Agency in the form of NIB, the owner of the NIB, which applies as an API, must report the realization of imports both realized and unrealized to the Director General of Foreign Trade (“Director General of Foreign Trade“) at the Ministry of Trade of the Republic of Indonesia. The report must also be submitted through the http://api.kemendag.go.id website.
The API or NIB that applies as an API can be made frozen if the importer does not carry out the following matters:
a. Obligation to report import realization,
b. Submit incorrect information or data in the API application document,
c. Not responsible for imported goods,
d. Violate the statutory provisions in the field of import, and
e. Misuse import documents and letters relating to imports.
The frozen API can be reactivated if the importer has carried out the obligation to report import realization. Meanwhile, for violations of points (b) to (e)), the API can be reactivated after experiencing a freeze for 1 (one) year.
In the event that the freezing is carried out to NIB which applies as an API, the Director General of Foreign Trade will request the OSS agency to freeze or revoke the NIB which applies as an API. (ana)
ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.
By combining commercial sensibilities and legal expertise, ADCO as a Law Firm Jakarta assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.
@2020 ADCO Law. All rights reserved.
This publication has been prepared by Aditya Yudhistira for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.