How to Start an Import Business in Indonesia (2025 Guide)

With a rapidly expanding middle class, vast island geography, and a booming tourism industry, Indonesia offers immense opportunities for foreign brands and importers. 

However, entering this market requires more than demand — it requires navigating complex licensing rules, sector restrictions, and compliance obligations. 

This guide explains the entire import process — from establishing your company to clearing your first shipment — and highlights which industries allow 100% foreign ownership, and which require local partners. 

Who Can Import in Indonesia?

Legal Entities

In Indonesia, the importer must be a corporate entity — individuals cannot import under their personal capacity. The entity can be either a PT Local (fully Indonesian-owned) or a PT PMA (foreign-owned investment company). 

Your business scope must include import and distribution activities in its KBLI classification. Once registered, the company can apply for import licences. 

Pro Tip: Always double-check your KBLI codes before applying for NIB/API this is the top reason for import license delays. 

Ownership Limits the Positive Investment List

In 2021, Indonesia replaced the “Negative Investment List” with the Positive Investment List (Presidential Regulation No. 10/2021, amended by Perpres 49/2021). The guiding principle: business fields are open to 100% foreign ownership unless explicitly restricted. 

Some highlights relevant to import/trade: 

• The wholesale and distribution sector (i.e. general trade) is open to 100% foreign ownership. 

• Pharmaceuticals, cosmetics, food & beverage, medical equipment are regulated sectors. Even though many are now open to foreign ownership, additional regulatory requirements or local partnership models may still apply.  

• Certain sectors (e.g. retail trading directly to consumers) may still require a local partner or local entity to operate in a domestic distribution role. 

Note: If you plan to import food or cosmetics, BPOM approval is mandatory before your first shipment. 

If you plan to import non-regulated lifestyle goods, electronics, furniture, fashion, accessories, a PT PMA can often hold 100% ownership and act as importer/distributor under KBLI codes such as 46900 (general trading). 

But for products like food, cosmetics, pharmaceuticals, medical equipment, you must check: 

• Whether BPOM (Indonesia’s Food & Drug Agency) or other regulators require a local agent, local license, or ownership quotas. 

• Whether the product is listed as restricted import goods needing extra permits or quotas. 

Step 1 – Establish the Right Indonesian Entity & Business Scope 

Choose the Appropriate Structure 

• For foreign investors, the go-to is PT PMA. There is a minimum paid-in capital requirement (historically IDR 10 billion, though that can vary by sector) and compliance obligations. 

Select Accurate KBLI Codes 

The KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) is a 5-digit business classification. It determines what activities your company can legally conduct and maps to the Positive Investment List. 

You must include import/trading/distribution in your KBLI (for example, 46900 = general trading). If your KBLI list omits import/distribution, the OSS system may reject your API rights later. 

Incorrect KBLI selection is one of the most common reasons for API rejection. 

Step 2 – Register via OSS & Obtain NIB / API Rights 

Indonesia’s OSS (Online Single Submission) platform is the gateway for business licensing and import rights. 

What is NIB & API?

• NIB (Nomor Induk Berusaha, or Business Identification Number) is the foundational business license. 

• Under recent regulatory changes, your NIB automatically includes API rights (importer license) if you select import/trading business activities during registration.  

• The NIB does not expire, unlike certain API/NIK licenses. 

• Via OSS, you choose whether your NIB is API-U, API-P, or both.  

API-U vs API-P 

• API-U (General Importer) — for importing finished goods for resale or distribution.  

• API-P (Producer Importer) — for companies importing raw materials, capital goods, supporting goods for internal production.  

The API necessary for the company’s business activities will be determined automatically by the OSS system based on the KBLIs that are registered under the company. Recent reforms (Ministry of Trade Regulation 16/2025) have simplified converting API-U into API-P, relaxing strict historic requirements.  

Regulation 36/2023 also extended flexibility in which goods imported under API-P can later be traded or transferred.  

Required Documentation 

When applying via OSS, you will need standard corporate documents: 

• Deed of Establishment & its approval from Ministry of Law 

• NPWP (tax ID) 

• Shareholder and director identity data 

• Business classification (KBLI) indicating import/trading 

• Depending on product, sector-specific permits (e.g. BPOM, certificates)  

Once approved, your NIB doubles as API. This is more streamlined compared to old rules where API and NIB were distinct licences.  

Step 3 – Register with Customs & Obtain NIK 

To clear imported goods through Indonesian ports, your company needs a Customs Identification Number (NIK). 

• Register via INSW (Indonesia National Single Window) for customs clearance. 

• Your company head or authorized representative may need to present documentation or undergo interview. 

• With NIK, you may file import declarations (PIB — Pemberitahuan Impor Barang). 

If you don’t have proper licensing or NIK, customs can reject your shipment or impose fines. 

Step 4 – Comply with Import Operations & Logistics 

Once legal framework is in place, you can begin import operations. 

Use of Licensed Customs Brokers / Forwarders 

Many businesses outsource clearance tasks to local customs brokers or freight forwarders experienced with Indonesian procedures. 

Import Duties, Taxes & Declarations 

• Customs duty: based on HS tariff classification (HS codes).  

• VAT (Value Added Tax) on imports 

• Income tax withholding (PPh 22) applicable for certain categories 

• Must prepare invoice, packing list, bill of lading, certificate of origin, and any sectoral permits (e.g. health certificates)  

Warehousing Options 

• Bonded warehouse (for goods in customs control) 

• Regular warehouses (after customs release) 

Regulatory / Sector Permissions 

For regulated goods (food, cosmetics, electronics, chemical, medical devices), you may need: 

• BPOM approval (for food, cosmetics, medicines) 

• Halal certification 

• Emission / environmental permits 

• Ministry of Industry approvals 

• Technical standards / safety certifications 

Step 5 – First Shipment & Ongoing Compliance 

Here’s a simplified flow for your first import: 

1. Supplier ships goods; you receive all documents (invoice, packing list, certificate of origin, insurance, bill of lading). 

2. Submit import declaration (PIB) via INSW / Customs. 

3. Customs reviews may inspect physically. 

4. You pay duty, VAT, withholding taxes. 

5. Goods released; stored and distributed under your authorized KBLI. 

Over time, maintain compliance: 

• Keep accounting records tied to import activity 

• Submit periodic reports (e.g. LKPM for PMA, audit reports) 

• Prepare for customs audits or inspections 

Examples: What You Can Import 100% vs What Requires Local Partner / Special Permit 

These are general guidelines. SAS can check your specific product category and advise exactly whether a local partner (or agent) is mandatory in your case. 

Common Pitfalls 

• Wrong KBLI / Business classification — Many import API rejections stem from incomplete or incorrect KBLI listing. 

• Under-capitalization — Insufficient paid-in capital for your intended import scale may block your permit. 

• Neglecting sectoral permits — Importing food or cosmetics demands BPOM / halal certification, which can be a multi-month process. 

• Failure in customs compliance — Incomplete or mismatched documentation often triggers delays or seizure. 

• Ignoring regulatory updates — For example, MOT Regulation 16/2025 simplified API conversions, and Regulation 36/2023 broadened trade rights under API-P.  

• Assuming licenses are optional — Even with NIB/API, you still need sectoral approvals for many goods. 

How SAS Can Help 

Importing into Indonesia as a foreign investor is possible — with the correct legal structuring, licensing, and regulatory compliance. By ensuring your company includes import/trading in its KBLI, registering via OSS to obtain NIB + API, securing customs credentials, and fulfilling sectoral permits, you can import and distribute many goods under 100% foreign ownership. 

However, for certain categories (food, pharmaceuticals, tobacco, etc.), a local partner or agent may still be necessary. The key is to structure early, select the right permits, and avoid common pitfalls. 

At SAS, we specialize in bridging foreign investors and Indonesia’s regulatory system. Here’s how we assist: 

• Entity setup (PT PMA or hybrid models) with correct KBLIs for import/distribution 

• End-to-end OSS registration and obtaining NIB with API rights 

• Customs & NIK registration, and integration with INSW systems 

• Sectoral licence support (BPOM, halal, product certification) 

• Accounting, tax compliance, and import tax structuring 

• Logistics and customs broker network management 

• Ongoing compliance, audits, and advising on regulatory changes 

Ready to start importing into Indonesia? 

Smart Advisory Solutions (SAS) helps foreign investors establish PT PMAs, obtain import licenses (NIB, API, NIK), and manage customs compliance. 

Contact us today to schedule a consultation and take your first step toward importing successfully into Indonesia.