Facing the looming risks of global uncertainty and national economic conditions in 2023, the Government will continue to strive to create a conducive export ecosystem in Indonesia. The existence of Law Number 11 of 2020 concerning Job creation as amended by regulation of the government in lieu of law of the Republic of Indonesia number 2 of 2022 concerning Job Creation simplifies Regulations in the Export Sector to boost economic growth.

In this article, we will discuss export regulations in Indonesia which stipulate that all companies, both PT PMDN and PT PMA, are eligible to do export activities but must meet the document requirements and applicable technical requirements, and obtain export permits from the relevant ministry or agency.

PT PMA EXPORT

PT PMA (Foreign Investment) or foreign companies investing in Indonesia are permitted to export goods or products produced in Indonesia under the rules and regulations that apply in Indonesia. However, before being able to export, PT PMA must obtain an export permit from an authorized agency, such as the Ministry of Trade or the Ministry of Industry, depending on the type of product to be exported.

Read More: All Processed Food Producers Must Have CPPOB Implementation Licenses

Export Permit Requirements

In general, PT PMA must meet the following requirements to be submitted to the Ministry of Trade (Kemendag) to obtain an export license:

1. Have an NPWP (Taxpayer Identification Number) and SIUP (Trading Business Permit).
2. Have a production permit from the competent authority.
3. Have a business license to export from the competent authority.
4. Meet the technical, quality, and safety requirements set by the export destination country.
5. Complete the required documents, such as invoices, packing lists, and product certificates of origin.
6. After fulfilling the above requirements, PT PMA can apply for an export permit to the competent authority. The process of applying for an export permit usually takes several weeks to several months depending on the complexity of the application and the type of product to be exported.
7. PT PMA must also meet the requirements and quality standards set by export destination countries, such as product certification requirements and labeling.
8. After obtaining an export permit, PT PMA can export goods to the destination country following applicable regulations.

In this case, PT PMA must work closely with export partners and follow the rules and regulations that apply in Indonesia and export destination countries to ensure the export process runs smoothly. Regulations related to cooperation with export partners are regulated in Law Number 25 of 2007 concerning Investment, which provides freedom for investors to determine the form of cooperation with other parties. However, companies must comply with regulations and requirements that apply to the export of products to certain countries, including requirements for product certification, customs procedures, and import and export regulations.

After the export permit is granted, PT PMA must comply with the regulations and requirements that apply to the export of products submitted to Customs.

Customs Procedures

Customs procedures for the export of PT PMA (Foreign Investment) in Indonesia are regulated by the Directorate General of Customs and Excise (DJBC). The following is the general procedure for PT PMA exports:

1. Exporter registration: PT PMA must first be registered as an exporter with DGCE. Exporter registration can be done online through the portal beacukai.go.id.
2. Submission of Notification of Export of Goods (PEB): PT PMA must submit a Notification of Export of Goods (PEB) through the EDI (Electronic Data Interchange) system at DGCE. The PEB contains information on the types and quantities of goods to be exported, the value of the goods, the required documents, and other information required by DGCE.
3. Document verification: DGCE will check and verify documents submitted by PT PMA, including invoices, certificates of origin, and other required documents.
4. Physical inspection of goods: DGCE can carry out a physical inspection of goods if necessary to ensure conformity between the goods listed in the PEB and the goods to be exported.
5. Payment of customs duties: After all verification and inspection procedures have been completed, PT PMA must pay customs duties and other fees related to the export process.
6. Loading of goods: Goods to be exported must be loaded into containers or vehicles per applicable regulations and accompanied by the necessary documents.
7. Inspecting outgoing goods: After the loading process is complete, DJBC will check out the outgoing goods to ensure that the exported goods comply with the applicable documents and requirements.

PT PMDN EXPORT

PT PMDN (Domestic Investment) in Indonesia
Implementation of exports by PT PMDN is almost the same as PT PMA, except that in some cases, PT PMDN may need to meet additional requirements to meet technical requirements, such as product certification, or meet quality standards that apply in export destination countries.

Read More: Good News for Foreign Tourists: Tourist Visa Can be Applied for Without a Sponsor

Export Permit Requirements

Documents prepared by PT PMDN in exporting are:

1. Letter of application for the export permit: PT PMDN must submit a letter of application for an export permit to the Ministry of Trade containing information about the products to be exported, the countries of export destination, and the quantities to be exported.
2. Licensing document: Licensing documents that must be prepared include SIUP (Trade Business License), TDP (Company Registration Certificate), NPWP (Taxpayer Identification Number), and other licensing documents following the type of product to be exported.
3. Proforma Invoice: The proforma invoice contains information about the product to be exported, including item name, quantity, unit price, and total value. The proforma invoice is used as a basis for calculating export duties and also as a basis for preparing other export documents.
4. Packing List: The packing list contains information on the number and type of packaging, weight, and volume of products to be exported. A packing list is needed to make it easier to calculate the number of goods to be exported and also to ensure that the goods being exported are packed properly.
5. Certificate of Origin: A certificate of origin is required to ensure that the product being exported originates from Indonesia. The certificate of origin is issued by the Chamber of Commerce and Industry or an institution appointed by the government.
6. Other documents: Other documents must be prepared depending on the type of product to be exported and the requirements that apply to the export destination country. Some examples of other documents are halal certificates, fumigation certificates, and other special licensing documents.

With complete documents for export, you can proceed with the export application at the following stages:

1. Preparation of Export Documents
2. Implementation of Goods Inspection
3. Registration and Submission of Applications for Export Permits
4. Examination and Determination of Export Duty Tariff
5. Execution of Exports
6. Reporting of Export Results

Customs Procedures

PT PMDN must prepare all of these documents correctly and completely to obtain an export permit in Indonesia. In addition, PT PMDN must also understand the requirements and rules that apply to products to be exported and follow the procedures set by the government. After all, procedures have been carried out, peril exporters apply for an export permit from Customs with the following flow:

1. Registration at the Customs and Excise Service Office (KPBC): PT PMDN must first register at the KPBC closest to the company’s location.
2. Submitting customs and excise applications: PT PMDN must submit customs and excise applications online through the Indonesia National Single Window System (SINSW)
3. Document verification: KPBC will verify the application documents that have been submitted by PT PMDN, such as proforma invoices, packing lists, certificates of origin, and other required documents.
4. Physical inspection: PT PMDN must submit goods to be exported to customs officials for physical inspection.
5. Submission of documents and payment: After the document verification and physical inspection processes are completed, PT PMDN must submit customs and excise documents and pay customs duties that have been determined by the officer.

After all these procedures have been carried out properly, PT PMDN will obtain an export permit from Customs and can ship goods to the destination country.

ET Consultant is here to help business actors, both PT PMA and PT PMDN so that the export permit process for later exports can run smoothly and efficiently.

***

ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.

Ready to find out more?

Excellent and Trusted Consultant (ET Consultant)
PPHUI Building Lantai 2 suite 210 Jl. H.R. Rasuna Said Kav. C-22 Kuningan
Jakarta Selatan, 12940 Indonesia.
Tlp : 021 5290 7039
Email : [email protected]