Export Import Regulations
All goods, brought into the Customs Territory shall be treated as imported goods on which the import duties are due.
Customs Territory means the territory of Indonesia covering the land, waters, and air space over them and specified localities in the exclusive economic zone and the continental shelf in which Indonesian Customs Law applies in full.
Customs examination shall be applied for imported goods, which includes verification of documents and physical inspection. In order to obtain accurate data and to evaluate the lodged Customs Declaration, customs examination shall be carried out upon imported goods through the inspection of the goods and verification of the documents. To ensure expeditious flow of goods, the physical inspections shall be done selectively, in a sense that the inspection shall only be focused on imported goods having high risk, such as goods with high import duties, goods that are dangerous to the state and public, and goods imported by "blacklist" importers. In this regard, physical inspection shall only be performed in cases where there are intelligence information,. or in such a case when imported goods are selected for examination based on the random sampling automatically determined by computer. The determination will make the goods to be placed under "the green channel" or "the red channel". In the case that the goods are classified under "the red channel", they should be physically examined, while if the goods are classified under "the green channel", physical examination would not be required.
Geographically, Indonesia is a huge archipelago state, therefore it is impossible to place customs official along the seashores to ensure that goods incoming to or outgoing from the Customs Territory have fulfilled the prevailing provisions. Therefore, the fulfillment of Customs formalities shall be done at the Customs Service Office. It means that loading or unloading of goods at any place other than the Customs Service Office shall be regarded as violation against the Customs Law.
In this way, the control is easier to be done since the place to meet Customs formalities such as the lodgment of the Customs Declaration or payment of import duties has been clearly limited by designating the Customs Service Office in accordance with the trading needs.
However, the fulfillment of Customs formalities at a place other than the Customs Service Office still can be done when certain conditions determined, by the Minister of Finance are fulfilled in accordance with trading and economic needs; or when such a procedure provides an easier, safer, faster, better and cheaper way to fulfill Customs formalities; Such facilitation is granted on a temporary basis.
Lodgment of Customs Declaration for the fulfillment of Customs formalities may be done in writings or through electronic media such as diskettes or intercomputers direct connection.
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A release of imported goods uses Import Notification for Special Purpose form (PIBT) if the imported goods are for:
1. Removal Goods
2. Temporary Imported Goods brought by passenger
3. Imported Goods stipulated by Director General
4. Ship and Aircraft
5. Imported Goods through consignment service
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a. Importer
1) fills in the Import Notification for Special Purpose (BC2.1) in 2 (two) copies
2) submits Import Notification,attaching other customs documents to officer releasing goods
3) pays customs duty, excise and tax in import framework and/or deposit warranty
b. Officer releasing goods
1) receives Import Notification document bundle
2) examines the identity of the importer
3) records Import Notification for Special Purpose on BCP BC2.1 and puts the registration number on it
4) inspects those goods ,
5) determines classification and customs duty using BTBMI
6) determines customs value
7) calculates customs duty and/or excise and tax for import
8) submits Import Notification bundle to importer for Payment of customs duty, excise and tax for import Deposit warranty
9) receives payment and/or warranty from importer
10) issues good clearance certificate (SPPB) in.2 copies for releasing goods
11) releases goods based on 1st and 2nd page of good clearance certificate
12) gives 1s page of good clearance certificate after releasing goods to officer that handles manifest
13) deliveries Import Notification for Special Purpose to document distributor
14) keeps 2nd page of good clearance certificate for archive
15) keeps Import Notification for Special Purpose, attaching warranty until further accomplishment
16) gives money for payment of customs duty, excise and tax for import received that day to revenue administrator
c. Officer Handling Manifest
Closes item BC 1.1
d. Revenue Administrator
Receives money for payment of customs duty, excise and tax for import given by Officer Releasing Goods.
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Imported goods are not legally entered until the vessel carrying the .goods has been arrived in the Customs Territory. Prior to the arrival of the aircraft or vessel, the shipping agent should submit a Notice of Estimated Time of Arrival to Customs. Upon the arrival of the vessels, the master or the agent is obliged to lodge a General Declaration in the form of a Manifest covering all cargoes and supplies on board to the Customs Service Office, not later than 24 hours after the arrival.
Imported goods are allowed, commencing from the date of unloading. If the goods are not yet released within a period of more 30 (thirty) days from the date their storage in the temporary storage, they will be regarded as unclaimed goods. If the unclaimed goods are not yet released within a period of more than 60 days, Customs is entitled to sell such goods by auction.
The results of auction processes are used to cover import duties, taxes and . accrued charges. The balance of the process of the auction shall become the state property if it is not taken by the owner within the period of 90 (ninety) days from the date of notification letter. If it is not claimed by the owner, the balance will be appropriated for the state revenue.
Goods may be declared by the importer, or the customs broker on his behalf. In order to obtain release of imported goods for home use, the declarer must perform the following:
a. Carry out the import declaration and pay import duty and taxes at the bank or customs office.
b. Submit import declaration, the security and other supporting documents to Customs
c. Submit complementary customs documents and security.
Declaration must be made on an import declaration forms called "Declaration of Importation of Goods" (PIB) in which several important information submitted by declarer, such as name & address of exporter; name, address & status of importer; name & address of declarer; name of the vessel; description of goods; value of the goods; etc.
In four main ports (Tanjung Priok I, II, III and Soekarno-Hatta I-II), the declaration should be submitted and processed electronically through the EDI (Electronic Data Interchange) system, while in the other ports, it may be done manually or in diskettes media.
By the maximum of 4 (four) hours, importers shall get decision from customs of the PIB that has been submitted, whether the PIB is rejected or received and determination of the clearance channel. Customs should give the argument of rejection in the Rejection Note.
Physical inspection or examination will be conducted by Customs at the port of destination in Indonesia, and as mentioned above, will only be performed based on a very selective basis (through determination of red or green channels).
With regard to physical inspection, it shall be carried out in the following cases:
a. There are intelligence information determined by computer
b. Temporary admission goods
c. Re-imported goods.
To facilitate physical inspection, Customs Service office at Tanjung Priok, Jakarta, and Tanjuhg Perak, Surabaya, use the Hi Co Scan X-ray Container. Customs officials can decide if physical inspection is needed or not by translating the Scanned image obtained by the apparatus.
Imported goods may only be released from the Customs area after the Customs formalities have been fulfilled and the approval from the Customs official has been obtained.
In case of a tariff misclassification or miscalculation on import declaration occurred, the goods can still be released though the shortage of import duties and taxes due on such importation as a result of such mistakes is not paid yet. This is on the condition that such a shortage has to be paid within 30 (thirty) days from the. date of the letter of payment shortage declaration of import duties from the date of Reassessment Note issued on such an import declaration.
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The document for export is called Declaration of Exportation of Goods (PEB). The exporter or Customs broker on his behalf must submit export declaration and they are responsible for the accuracy of the particulars given in the declaration and the completeness of its supporting documents.
Declaration of Exportation of Goods (PEB) shall not be required by Customs for certain exports activities, for example goods taken out by passengers and crew of means of transport, border crossers, vehicles which are using international document (ATA Carnet, TRIPTIEK, CPD Camet) consignments by PT Pos Indonesia, which are using Declaration En Douane (CN 23).
Basically, for export there should be only documentary examination carried out by Customs.
Physical examination will be performed by Customs only in the very special circumstances, such as the following cases:
a. Customs fraud
b. Temporary exportation/importation
c. Fraud in VAT (Value Added Tax) and Sales Tax on Luxurious Goods (STLG)
d. Exportation of goods which are subject to Export Tax (PE)
e. Exportation of goods which are using drawback system facilities.
Customs examination shall be performed at the Customs area, at the exporter's premises or other location used to store export goods. Surveyor examination. shall be performed at any place beyond customs area, which is determined by exporter.
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a. Exported Goods is subject to declared Exported Goods using Export Declaration manually or electronically transferred
b. Special exported goods are declared using Specific Declaration, which include:
1) Consignment sent of the amount Rp. 300,000,000.- or lower
2) Removal Goods
3) Diplomatic Corps Goods
4) Goods donated for public works, charity, social and cultural purpose
5) Imported Goods that are being re-exported
6) Goods sent out that are to be sent in again to the customs territory
7) Souvenir
8) Handicraft
9) Samples
10) Goods for research and scientific purpose.
Declaration will not be needed if:
1) They are Passenger Goods and Crews Goods
2) Border Crosser
3) Goods under the ATA CARNET, TRIPTIEK OR CPD CARNET regulation
4) Consignment Goods by the Postal
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a. Only the documents of the exported goods would be inspected.
b. Only in special cases, exported goods would be inspected in its physical condition by: 1) Directorate General of Customs and Excise if : .
Based on the actual information, there would be or just happened a violation of export .
Based on the actual information from Directorate General of Tax that there would be or just happened a violation of tax related with VAT and Sales Tax in Luxury Goods
The Goods would be re-imported in the Customs
Territory inspection could be done in Customs area, exporter warehouse, or other place used by exporter to keep their export goods.
2). Surveyor, if the exported goods are:
The whole or some parts came from imported goods, which have duty free facilities, further payment of VAT/Sales of luxury goods and duty returned and payments of such tax. Inspection shall be done in the place notified by exporter, out of the customs territory.
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Exporter or his agents fills out Declaration (PEB) completely and than submits it to the customs office along with the following attachments:
a. Surveyor Reports in the terms of the goods subject to inspection
b. Copy of the letter of payments (STBS) or copy of payment capability (SSB) in the case of dutiable goods
c. Copy of the invoice and copy of the packing list
d. Copy of the complementary documents as stated by the rules
e. Payment of the National duties related to export (PNDRE)
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Customs Official has to record the documents in the customs logbook and gives number and date to the related documents.
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If during documents examination the Custom Official found it satisfactory, Customs official will give loading permission on the declaration (PEB) by enclosing place, date, signature, real name, officer registration number, and formal sign on the related declaration.
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If the documents are found unsatisfactory, they would be rejected in order to be changed/revised. Revision of the declaration contents could be done before or after loading permission.
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Goods loading could be done only after loading permission.
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a. Carrier that left the customs territory, should inform about the goods carried with outward manifest at least 3 days after the departure.
b. Export Goods being moved to other place in the customs territory should be announced with the copy of the PEB legalized by the loading official to the transit official.
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a. Inspection would be done by the official after receiving application for inspection from the exporter.
b. Application should be submitted at least 3 working days before inspection.
c. Inspection includes:
1) Goods genus
2) Goods quantity
3) Technical specifications
4) HS Classification
5) Packing genus
6) Mark of packing
7) Unit price and total price
8) Fulfillment of Export rules
d. Inspected goods must be signed by surveyor, and surveyor notes the inspection result in Surveyor Inspection Report (LPS-E).
e. LPS-E is issued in 5 copies for the following distribution:
9) First copy for the exporter .
10) Second copy for the Loading Office
11) Third copy for the Facilitator Institutions
12) Fourth and Fifth copies for the Surveyor
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a. Submission of Declaration could be done in arranged period using periodical declaration.
b. This could be done after getting the permission from the official.
c. Permit will be issued if the reputation of the exporter is well known
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a. Correction to the mistakes made in the declaration of the genus and quantity is subject to Rp. 1,000,000.- up to Rp. 10,000,000.- fine.
b. Unreported cancellation is subject to Rp. 5,000,000.- fine.
c. Exporter who did not follow the accounting and administration procedures related to exportation activity is subject to Rp. 5,000,000.- fine.
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a. Beyond the working hours and working days of the Bank, payment could be made in Customs Office.
b. Goods declared for export, while waiting for loading, could be stored in temporary storage.
c. Loading could be done in :
1) customs area
2) other place considered appropriate as customs area, subject to permission d. Cancellation of goods declared for export should be reported to the official. Exporter has to follow accounting and document administration related to the exportation.
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a. Custom
A PMA company shall be required to summit a master list for its imported capital goods; namely machinery, equipment and raw material; to BKPM/ BKPMD along with the following attachments:
1) Application Letter
2) Master list
3) A copy of investment approval
4) Equipment Layout Drawing
5) Technical Brochures/Technical Literature
6) A copy of NPWP
7) A copy of NPPKP
8) Production Process Flow-Chart
9) Capacity Calculation
The evaluation of the master list will be made in terms of their compliance with the conditions and requirements of the investment approval and the result of evaluation will then be sent to BKPM/BKPMD.
Based on the evaluation of the master list applications, the BKPM/BKPMD will legalize the application and "issue a customs approval letter exempting import duties in the items listed on the letter.
The raw material (needed for 2 year accumulated production time) may only actually be imported after at least 75% of the machinery are installed.
b. The Requirements of Goods Subject to Excise
1) Ethanol
2) Beverages containing ethanol of all percentage, including the concentrate
3) Tobacco products.
c. Time of Imposation
For goods subject to excise and made in Indonesia: as soon as being produced. 2) For imported goods, by virtue of rules, based on the custom law: at time of importation in to the customs territory.
d. Excise is not collected from
1) Unpacked/packed sliced tobacco and beverages containing alcohol resulted from fermentation/simple refinery
2) Goods for export
3) Goods brought into the fabric or storage area
4) Goods damaged before sent out
5) Continuous carry
6) Goods used as raw materials of other goods subject to excise.
e. Excise free is given to goods subject to excise if
1) Used as raw material or supplemental material for non excise product
2) Goods are for experimental or scientific purposes
3) Goods are for diplomatic needs/foreign experts working for international organization 4) Goods are for passenger, crew, crossing border, or consignment goods, in limited quantity
5) Goods for social purpose
6) Goods are brought into Bonded Storage.
f. Excise return is given to
1) Exported goods
2) Recycled or Damaged Goods
3) Over payment caused by incorrect calculation
4) Over payment caused by objectional committee.
g. Basic price
1) For goods produced in Indonesia: factory price or retail price
2) For imported goods: customs value plus import duty or retail price.
h. Tariff system
Tariff is determined using price system, specific/quantity tariff or combination of both.
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In order to attract both domestic and .international investors, the government takes the initiative of establishing industrial estates and provides all necessary infrastructure, facilities and housing in safe locations. Available at reasonable cost, the industrial estates provide a secured location for industry and manufacturing.
Today, based on the data available from the Ministry of Industry and Trade and from the Investment Coordinating Board, The Republic of Indonesia, there are a total of 40 industrial estates currently operating in Indonesia. The large industrial estates are found in Jakarta, West Java (Bekasi, Karawang), Banten (Tangerang and. Serang), Central Java (Semarang and Cilacap), East Java (Surabaya, Pasuruan and Probolinggo), North Sumatra (Medan), West Sumatra (Padang), South Sulawesi (Makassar), Batam Island and Blntan Island.
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Several bonded zones, which are operated by private and government, have been established in Jakarta, Batam Island, North Sumatra, South Sulawesi, East Java, Central Java and West Java;
Batam island is an industrial growth center as well as one of only two bonded zones in Indonesia ,.the other is located in Jakarta's Tanjung Priok harbor complex - and has proved to be attractive to many investors. . Batam Island located is about 20 kilometers from Singapore. There are plans to turn Batam into a free trade zone to make it even more attractive for foreign investors. Batam currently offers incentives to investors such as better bureaucracy, no export-import tax and special land lease permits for 80 years.
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In 1976, the Government established a Capital Market Supervisory Board (BAPEPAM) and a state owned company to operate stock transactions (PT. DANAREKSA) to promote the development Of security markets in Indonesia. However, only since 1986 when the government started to significantly deregulate this sector, the capital & stock markets activities in Indonesia has experienced a dramatic rise. Instead of getting involved in the day-to-day operation of the capital & stock markets, now BAPEPAM has only a regulatory and supervisory role.
Its principal function is to ensure an efficient, orderly and fair operation of the markets, now run by private agencies licensed by the Minister of Finance.
Today, the Indonesian capital market has two stock exchanges, the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX). These are conveniently positioned at both ends of the island of Java - home to about 75 percents of Indonesia's over 220 million inhabitants - Jakarta being the nation's capital city and Surabaya the second largest city in Indonesia after Jakarta. Both Stock Exchanges are dedicated to helping develop business opportunities in Indonesia, both for local and foreign entrepreneurs, through providing a range of different funding alternatives. With their initial public offering, many Indonesian companies in fact have joint listing in both the Jakarta Stock Exchange and Surabaya Stock Exchange and often on an overseas exchange as well.
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Indonesian land legislation does not recognize the concept of freehold land right. Instead, the various right attached to the land are subdivided into separate titles. The Basic Agrarian Law recognizes types of rights on land. To foreign as well as domestic investors, the following three main rights are of interest: the Land Cultivation Right (Hak Guna Usaha, abbreviated as HGU), the Right of Building on Land (Hak Guna Bangunan, abbreviated as HGB)and the Land Use Right (Hak Pakai, abbreviated as HP).
These rights authorize the use of land in some ways, and their differences are mainly on the duration of validity, the nature of utilization, the opportunity to mortgage (to use as an assets or collateral) and proof of title:
a. The Land Cultivation Right (HGU) is the right to use a State Owned land for the purpose of agriculture, namely plantation, fishing, or cattle rising. By the law, the right is granted for a maximum .period of 35 (thirty-five) years, but may be extended t025 (twenty-five) years if the land is properly used and managed. This title of right is given to Indonesian partner(s) or legal entities domiciled in Indonesia, including PMA companies. It can be used as collateral or transferred to a third party with government approval.
b. The Right of Building on Land (HGB) is the right to construct and own buildings on a place of that one has been purchased. The title is granted for a maximum period of 20 years. The HGB title is given to Indonesian individual(s) and/or legal entities domiciled in Indonesia, including PMA companies, and can also used as collateral or transferred to a third party.
c. The right of Use on Land (HP) is the right to use land for any purpose for a period of 25 years. It can be extended for 20 years. It has no collateral value to owners and but not transferable.
A Dwelling house or a residence. that can be owned by a foreign person shall be:
a) A separate house constructed on a piece of land with the right of utilization on state .land or controlled on the basis of an agreement with a land title holder, or:
b) An apartment constructed on a piece of land with the right of utilization in state land.
Foreign investor who obtained mining contract from the Minister of Energy and Mineral Resources or the Respective Governor/the District Head, or the forest exploitation rights and plantation rights from the Ministry of Agriculture or the Respective Governor/the District Head, could automatically use the land within their concession boundaries for purpose directly related to their business license. If the investor wants to use the land for different purposes, special application should be submitted to the Ministry or the Respective Governor/ the District Head concerned. These rights have no collateral value to the owner.
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