Setting Up an Import Company in Indonesia
Setting up an import company in Indonesia means registering a PT PMA, a foreign-owned limited liability company, through the OSS licensing system, selecting the correct KBLI trading code, and obtaining an Importer Identification Number (API-U or API-P) plus a customs registration number (NIK) before a single shipment can clear port. Most import classifications allow 100% foreign ownership. Plan on an investment plan of roughly IDR 10 billion per business line and a realistic timeline of six to twelve weeks from notary deed to a working import licence, longer if your goods need sector-specific approvals.
Contents
- What an Import Company in Indonesia Actually Is
- Can a Foreigner Own 100% of an Import Company in Indonesia
- What It Costs to Set Up an Import Company in Indonesia
- Step by Step: Setting Up an Import Company in Indonesia
- API-U or API-P: Picking the Right Import Licence
- Products and Goods That Need Extra Permits
- Mistakes That Delay or Kill Your Import Licence
- Frequently Asked Questions
What an Import Company in Indonesia Actually Is
There is no separate legal category called an "import company" in Indonesian law. What you are actually setting up is a PT PMA, a limited liability company with foreign shareholding, registered with a KBLI (Klasifikasi Baku Lapangan Usaha) code that covers wholesale trade or import distribution. The KBLI code you choose determines what you are legally allowed to import, which licences apply, and whether your sector is open to full foreign ownership or capped.
A local CV or a nominee-owned PT cannot legally hold majority foreign ownership for a serious import operation, and using one to dodge the PT PMA capital requirement is the single biggest trap foreigners fall into here. More on that below.
Can a Foreigner Own 100% of an Import Company in Indonesia
Yes, for most general trading and wholesale import KBLI codes, foreign investors can hold 100% of the shares. Indonesia moved from the old Negative Investment List to the Positive Investment List system in 2021, which opened up most trading sectors to full foreign ownership. A smaller number of codes, particularly in retail distribution to end consumers, certain agricultural commodities, and some strategic goods, still carry foreign ownership caps or require a local partner.
Before you commit to a company name or a lease, check the current status of your exact KBLI code in the OSS system. The rules get revised, and a code that was fully open two years ago can carry new conditions today. This is a five-minute check for a lawyer who works in the system daily and it saves you from restructuring shareholding later.
What It Costs to Set Up an Import Company in Indonesia
The headline figure everyone quotes is the IDR 10 billion investment plan per KBLI line, but that is a stated investment commitment, not cash you hand over on day one. What you actually pay up front is notary fees, government processing fees, licence fees, and the portion of paid-up capital your bank requires to activate the corporate account, which is commonly cited around 25% of the stated capital, roughly IDR 2.5 billion, though this varies by bank and by how the capital structure is set up. Confirm the current figure with your notary before you budget.
| Item | Typical range | Notes |
|---|---|---|
| Notary deed and company establishment | IDR 15,000,000 to 35,000,000 | Varies by notary and complexity of the deed |
| NIB and OSS registration | No government fee for the NIB itself | Service fee applies if you use a consultant |
| Importer Identification Number (API-U or API-P) | Service fees typically IDR 5,000,000 to 15,000,000 | No separate government charge, but processing takes time |
| Customs registration (NIK) | Processed with API application | Required before any import declaration |
| Registered office or virtual office | IDR 10,000,000 to 40,000,000 per year | Not all regencies accept virtual offices for trading companies |
| Legal and licensing service fee | Varies widely by firm and scope | Ask for a fixed scope quote, not an hourly estimate |
| Paid-up capital deposit | Commonly around 25% of the stated IDR 10 billion plan | Confirm current minimum with your bank and notary |
These are illustrative ranges, not quotes. Fees move, regulations move, and the right number for your business depends on the KBLI code, the regency where you register, and whether your goods need sector approvals on top of the standard process. Anyone who gives you a fixed total price before seeing your product list and intended HS codes is guessing.
Step by Step: Setting Up an Import Company in Indonesia
The order matters. Skipping ahead, especially trying to import before the API is live, is how goods get stuck at the port.
| Step | What happens | Typical duration |
|---|---|---|
| 1. Choose KBLI code(s) | Match your actual products to the correct trading classification | 1 to 3 days |
| 2. Notarial deed of establishment | Company name, shareholders, structure drafted and signed | 3 to 7 days |
| 3. Ministry of Law approval | SK Kemenkumham confirms legal entity status | 1 to 2 weeks |
| 4. Tax ID (NPWP) registration | Company tax identity, required for all following steps | 3 to 5 days |
| 5. NIB via OSS | Business identification number, functions as your core licence | 1 to 2 weeks |
| 6. API-U or API-P application | Importer Identification Number, the licence that lets you actually import | 2 to 3 weeks |
| 7. Customs registration (NIK) | Registers you with Bea Cukai for import declarations | Runs alongside API step |
| 8. Bank account and capital deposit | Corporate account opened, paid-up capital deposited | 1 to 2 weeks, can run in parallel |
| 9. Sector permits if applicable | BPOM, Ministry of Trade, or Ministry of Industry approval for restricted goods | Adds 2 to 8 weeks depending on product |
Total realistic timeline for a straightforward general trading company is six to twelve weeks. Food, cosmetics, supplements, electronics, and medical devices all add sector review time on top of that, sometimes significantly. If the foreign shareholder plans to live in Indonesia and act as company director, that person also needs a work permit and KITAS, which is a separate process you should start in parallel rather than after. Our guide to work permits and residence visas in Indonesia covers what a director sponsoring their own KITAS actually needs to show.
API-U or API-P: Picking the Right Import Licence
This single choice trips up more applicants than anything else in the process. The two licences serve different purposes and you cannot use one in place of the other.
- API-U (Angka Pengenal Importir Umum) is for general importers who bring in goods to sell or distribute. If your business model is buy overseas, import, sell in Indonesia, this is your licence.
- API-P (Angka Pengenal Importir Produsen) is for producer-importers bringing in raw materials, components or machinery for their own manufacturing or production use. Goods imported under API-P cannot legally be resold as-is.
A manufacturer that also wants to trade finished goods on the side generally needs both licences under the correct company structure, not one licence stretched to cover two activities. Customs checks this, and a mismatch between your API category and your actual shipment is grounds for the goods being held.
Products and Goods That Need Extra Permits
Not every product moves through the standard API and customs process alone. Several categories need sign-off from a specific ministry or agency before the goods are allowed to land, regardless of how clean your company structure is.
- Food, beverages, cosmetics and supplements need BPOM registration, which is product-specific and can take weeks per SKU.
- Medical devices and pharmaceuticals require Ministry of Health approval on top of BPOM.
- Alcoholic beverages fall under separate, tightly controlled import quotas and licensing.
- Used goods and second-hand machinery are restricted or prohibited for import in most categories.
- Certain agricultural and horticultural products require quarantine clearance and Ministry of Agriculture recommendation letters.
Confirm the current permit list for your exact product and HS code before you sign any supplier contract. A clean PT PMA and a valid API do nothing for you if the product category itself needs a permit you have not applied for.
The most expensive mistake we see: using a nominee Indonesian shareholder or a local CV to avoid the PT PMA structure and the capital requirement. It is not a grey area, it is illegal under Indonesian investment law, and the foreign party has no enforceable claim to the company if the arrangement sours. We have handled cases where the entire business, stock, bank account and goodwill, was lost because the real owner's name never appeared on a single legal document. The capital requirement is real money, but it is recoverable risk. A nominee arrangement is not.
Mistakes That Delay or Kill Your Import Licence
Beyond nominee structures, the delays we see most often come from a short list of repeatable errors.
- Wrong KBLI code chosen at setup. Changing it later means amending the deed and re-filing with OSS, adding weeks.
- Importing before the API is active. Goods arriving at a port with no valid importer number get held, and storage fees accrue daily.
- Assuming LKPM reporting is optional. PT PMA companies must file periodic investment realization reports (LKPM), usually quarterly. Missing filings can trigger fines and, in repeated cases, licence suspension.
- Underestimating sector permit timelines. A BPOM number for a new supplement SKU can take far longer than the company registration itself.
- Treating the registered office as a formality. Some regencies do not accept virtual offices for trading company registration. Confirm locally before signing a lease you cannot use.
Most of these are avoidable with a proper structuring conversation before the notary deed is drafted, not after. If you are still deciding between company registration and a simpler visa route to test the market first, our Bali visa agency services page covers the faster entry options for founders not yet ready to commit to a full PT PMA.
Frequently Asked Questions
Can a foreigner own 100% of an import company in Indonesia?
Yes, for most general trading and wholesale import KBLI codes, foreign investors can hold 100% of a PT PMA. A smaller number of sectors, including some retail distribution and specific agricultural categories, still have foreign ownership caps or require a local partner. Check the current status of your exact KBLI code in the OSS system before registering, since the list is revised periodically.
How much capital do I need to set up an import company in Indonesia?
The stated investment plan requirement is commonly set around IDR 10 billion per KBLI business line, excluding land and buildings. Of that, a portion, often cited around 25%, needs to be deposited as paid-up capital to activate the corporate bank account. These figures vary and are subject to regulatory change, so confirm the current minimum with your notary or lawyer before budgeting.
What is the difference between API-U and API-P?
API-U (general importer licence) is for companies that import goods to resell or distribute in Indonesia. API-P (producer-importer licence) is for companies importing raw materials, components or machinery for their own manufacturing, which cannot be resold as-is. Businesses that both manufacture and trade finished goods typically need both licences under the correct structure.
How long does it take to set up an import company in Indonesia?
A straightforward PT PMA for general trading, with no restricted products, typically takes six to twelve weeks from notary deed to a working API import licence. Goods requiring BPOM, Ministry of Health, or Ministry of Agriculture approval add significant time on top, sometimes several additional months depending on the product category.
Do I need a physical office to register an import company?
You need a registered business address for the NIB and OSS registration, and it must match the domicile requirements of the regency where you register. Some regencies accept virtual offices for trading companies, others require a physical lease. Confirm this with the local licensing office before signing any office agreement, since the rule is not uniform across Indonesia.
What products cannot be imported by a foreign-owned company?
Used goods and second-hand machinery are restricted or prohibited in most categories. Alcoholic beverages fall under separate tightly controlled quotas. Food, cosmetics, supplements and medical devices require BPOM or Ministry of Health approval before import, regardless of your company's ownership structure. Always confirm the permit list for your exact product and HS code before contracting with a supplier.
Do I need a KITAS to run my import company?
If you plan to work in Indonesia as a director of the company you are setting up, you need a work permit and a KITAS, separate from the company registration itself. This process runs alongside, not after, the company setup. Our work visa and KITAS guide walks through the sponsorship requirements for company directors.
What happens if I do not file LKPM reports?
PT PMA companies are required to file periodic investment realization reports (LKPM), usually on a quarterly basis, showing how the stated investment plan is being executed. Missing filings can result in fines and, for repeated non-compliance, suspension of your business licence. This is a recurring obligation, not a one-time registration task, and it continues for the life of the company.
If you are weighing a PT PMA import structure against a simpler entry point into the Indonesian market, it helps to talk through the ownership, capital and licensing questions before any deed is signed. Our team at The Bali Lawyer handles PT PMA setup and import licensing for foreign founders across Indonesia, and can tell you within a short consultation whether your KBLI code is fully open or carries conditions you need to plan around.