Then, in March 2024, the Ministry issued Ministry of Trade Regulation No. 3 of 2024 on Amendment of Import Policies and Provisions (“Regulation 3/2024”). Among others, Regulation 3/2024 amended the provisions on import permits and import arrangements of plastic raw materials, chemicals, aircraft spare parts, and horticultural products.

Both Regulations are aimed to enhance the supervision of goods entering Indonesia by restricting the importation of specific goods to maintain the stability of domestic trade. In Regulation 3/2024, the Ministry expands the range of used goods eligible for importation, updates the requirement for obtaining import permit, and adds classification of goods that are subject to import restrictions.

All imported goods have their own classifications called the Harmonised System Code or HS Code, which are regulated under the Indonesian Customs Tariff Book 2022 (Buku Tariff Kepabeanan Indonesia). Aligned with the additional goods classifications in the Indonesian Customs Tariff Book 2022, Regulation 3/2024 also added various goods classifications that are subject to import restrictions. This will affect import procedures and business entities should check for the newly added goods classifications to determine whether they will be subject to import restrictions.

Business entities, especially those conducting importation regularly, must pay close attention to both Regulations to ensure compliance. Moreover, because the issuance of an import permit is based on the availability of quota in the commodity balance data, business entities should create a plan and strategy in applying for an import permit to secure the quota according to their needs. Lastly, business entities must monitor the HS Codes of goods due to the changes in the HS Codes.

For the import permit of iron, steel, and textile products, it will remain valid for a maximum of one year, regardless of whether the commodity balance has been defined or not and it applies to API-P and API-U. Therefore, it is essential to note that if a business entity’s import permit for iron or steel was issued in May 2024, it will only be valid until December 2024, instead of April 2025.

All applications for Import Licenses are conducted electronically to the Minister of Trade through SINSW which is relayed to the INATRADE System, with the following flow import approvals, together referred to as, the “Import Licenses”.

The requirement for Import Licenses depends on the nature of the goods and their respective HS Codes. Some goods may require one or multiple Import License(s). Additionally, importers must acquire a surveyor report before engaging in the importation of specific goods. This is a prerequisite for customs area inspection of the goods.

INSW – Indonesia National Single Window System – is an electronic system that integrates systems and/or information related to the process of handling customs documents, quarantine documents, licensing documents, port/airport documents, and other documents, related to exports and/or imports, which ensures data and information security and integrates the flow and process of information between internal systems automatically.