Indonesia, with its abundant resources and strategic location, is a prime player in the global market. However, engaging in international trade requires adherence to regulatory processes and obtaining an export license being a crucial step.
In this comprehensive guide, we will delve into the intricacies of export licenses in Indonesia, helping you understand the process and requirements to facilitate your international trade endeavors.
What Is an Export License?
An export license is an official document issued by the Indonesian government, granting a business or individual the legal authority to export specific goods from Indonesia to international markets.
This license is essential to ensure that exports comply with national laws, international agreements, and trade regulations.
Why Do You Need an Export License?
Export plays a pivotal role in Indonesia’s economy, making it a key player in the global market. With its abundant natural resources, strategic location, and a diverse range of exportable products, Indonesia has become a prominent exporter in Southeast Asia.
Export licenses are needed for several specific reasons, such as:
- Regulatory Compliance
They ensure that your exports adhere to government regulations and international trade laws. - Security
Export licenses help prevent the illegal export of sensitive or restricted goods. - Quality Control
They promote quality control and traceability of products.
Understanding New Licensing System
The Indonesian Ministry of Trade released the following two regulations on April 1, 2021, and they came into force on November 19, 2021:
(i) Regulation No. 18, which governs the manufacturing of commodities that are forbidden from export and import; and
(ii) Export Policy Regulation No. 19 of 2021, which provides important modifications to export licensing for exporters in Indonesia and integrates it with an online licensing system.
How To Earn Export License Indonesia Easily
Exporters must use the Indonesia National Single Window System (SINSW) to submit their applications electronically. It is an electronic system that integrates systems or data connected to the handling of documents for customs, quarantine, licensing, ports, and airports, among other processes.
Exporters must have access rights before submitting an application through SINSW, which they can obtain by signing up with SINSW and submitting original scanned copies of at least the following documents:
- Taxpayer Identification Number (“NPWP”) or Population Identification Number (“NIK”), for particular exporters;
- NPWP, for exporters of State-Owned Enterprises and Foundations; or
- NIB and NPWP, for exporters in cooperatives and business entities.
After receiving the Access Rights, the exporter must submit an application by uploading scanned copies of the necessary paperwork for the commodities to be exported. It is listed in Appendix I of MoT Reg 19/2021, together with a declaration of responsibility.
Additionally, the Director-General of Foreign Trade, acting on behalf of the MoT, issues an export business license through the INATRADE system if the application is deemed complete and meets the requirements. This export business license is sent to SINSW with an electronic signature and QR code.
Related Article : How Does Coconut Influence the Economy & Culture of Indonesia?
Prohibited and Exportable Goods
Indonesia’s export sector encompasses various industries, including agriculture, manufacturing, and mining. Indonesian exports include commodities such as palm oil, rubber, coffee, textiles, electronics, and natural gas.
According to MoT Reg 19/2021, the following is a list of several things that can be exported after obtaining a company license in Indonesia:
- Natural plants, wildlife, and fish;
- Industrial Forest Products;
- Rough diamonds;
- Masks and mask raw materials;
- Tin;
- Edible swallow’s nest;
- Rice;
- Animals and animal products;
- Metal scraps; and others
Have You Got Your Export License Indonesia?
In conclusion, obtaining an export license in Indonesia is a crucial step for anyone who’s interested in international trade. It ensures compliance with regulations, enhances the quality of exported goods, and opens doors to a world of business opportunities.
By following the outlined process and staying compliant, you can start your international trade journey easily. If you are interested in exporting from Indonesia, you can try exporting coconut products. Since coconut products have a lot of potential customers and the exports are pretty easy.
For further information, you can check on how to buy coconut products from Indonesia with Sari Coconut. Sari Coconut Indonesia is a company that provides processed coconut products to meet various industrial needs.
They have various coconut products ranging from RBD coconut oil, desiccated coconut, coconut sugar, coconut fiber and many more. Go contact Sari Coconut for further information about their products!
Related Article : 10 Coconut Products from Indonesia Available for Purchase
FAQ
Is an export license mandatory for all exports from Indonesia?
Yes, an export license is required for most export transactions from Indonesia. However, some exceptions may apply for certain products or destinations.
How long does it take to obtain an export license in Indonesia?
The processing time for an export license can vary depending on various factors, but it typically takes a few weeks to complete.
Are there any restrictions on the types of goods that can be exported from Indonesia?
Yes, Indonesia has restrictions on the export of certain goods, especially those of strategic importance or cultural products.
Can an individual obtain an export license, or is it only for businesses?
Both individuals and businesses can apply for export licenses in Indonesia, depending on their export activities.
What happens if I fail to renew my export license on time?
Failing to renew your export license on time may result in disruptions to your export operations and potential legal consequences. It’s crucial to stay compliant with renewal requirements.
What Documents Are Required for an Export License Application?
Commonly required documents include business registration documents, tax identification numbers, invoices, and product details. The specific documents that are needed can vary based on the type of goods and regulations in the place.
