Indonesia’s 2025 Import Policy Reform: The Definitive Guide to Permendag 16/2025 and Its Sectoral Rules (17–24/2025)
Why did Indonesia overhaul its import rules in 2025?
Because a complex licensing landscape and strict technical standards were dampening competitiveness. In response, the government launched a deregulation push to simplify licensing, raise efficiency, and foster a more pro-business environment—anchored by Minister of Trade Regulation (Permendag) No. 16 of 2025 and a suite of sector-specific follow-ups.
What is Permendag 16/2025—and how do the sectoral rules fit together?
Permendag 16/2025 is the umbrella rule for import policies and procedures. It is implemented via commodity-cluster regulations:
Together, these create a consistent, sector-aware import framework that improves legal certainty and access.
Key Takeaways: What the Sectoral Rules (19–24/2025) Mean in Practice
Common pattern across clusters: plan for pre-entry approvals (PI and, where applicable, IT/IP), technical verification (LS/VPT), monthly e-reporting, and clear transitional handling; zone entries (KPBPB/KEK/TPB) are generally lighter but full rules apply at domestic release.
17/2025 — Textiles & Textile Products (TTP): Broad TTP scope (textiles, carpets/flooring, batik/batik-patterned goods, finished textiles, apparel/accessories). PI pre-entry aligned to API-P/API-U, plus import recommendation, surveyor LS, and Ministry of Industry technical considerations. Zone entries get initial relief, but full rules on release to the Customs Territory. Batik safeguards: circulation from free zones to domestic prohibited; only API-P with special PI may import, still LS-verified with electronic reporting of testing/distribution. Limited exemptions require a Director General Letter and a valid NIB (API); post-border supervision, mandatory reports (PI realizations—even nil—and LS outcomes), and administrative sanctions apply.
19/2025 – Salt & Fishery: Salt, pearls, broodstock/fry/pearl nuclei, fishery products. PI + LS before entry; zone/KITE entries initially exempt but full rules on domestic release; mandatory e-report + LS upload; existing PIs valid to expiry.
20/2025 – Chemicals/Hazardous/Minerals: Strategic chemicals (incl. ODS/HFCs), hazardous substances (B2), precursors, rough diamonds, crude oil & gas, clinker/cement, etc. IT (as applicable) + PI + LS; special zone carve-outs by commodity; strict reporting and transitions.
21/2025 – Electronics & Telematics: Color MFPs/copiers/printers; mobiles/handhelds/tablets; electronics (incl. cooling). IT + PI + LS; many non-cooling items exempt on zone entry, but full rules on domestic release; reporting + transitional continuity.
22/2025 – Certain Industrial Goods: Steel, tires, ceramics, flat/safety glass, valves, selected chemicals, plastics, fragrance preps, raw materials for alcoholic beverages. PI before entry + LS; zone entry relief, KITE carve-outs (ceramics exception), reporting + specific revocations/INATRADE handling.
23/2025 – Consumer Goods: Food/bev, TM/health supplements, cosmetics/household health, toys, bags, footwear, bicycles, alcoholic beverages. IT + PI + LS (alcohol specifics incl. PLB flows); zone/TPB variations; e-reporting + transitions.
24/2025 – Used Goods & Non-B3 Waste: New goods (as required), used goods, non-functional lithium batteries (intact), non-B3 waste. PI and/or IP plus LS/VPT as specified; detailed KPBPB/KEK/TPB authority flows; sealed-container and waste-management obligations; e-reporting + transitional continuity.
Where does deregulation stop (and why)?
Strategic safeguards remain in place. Imports are still tightly supervised for:
commodity-balance goods
HSSE-related goods (health, security, safety, environment), and
strategic goods backing labor-intensive industries—a precautionary stance to protect public interest and local industry.
What does the Import Policy reform aim to achieve?
Leaner bureaucracy and stronger investment. The package is designed to streamline licensing, attract investment, support domestic industry, and create jobs.
What baseline requirements apply to business importers?
You need an NIB (serving as API) and, where required, an import business license.
NIB as API (Importer Identification Number):
API-U (General): for goods to resell/transfer
API-P (Producer): for own use in production
Importers may hold only one API type at a time.
Import business license (as applicable): Registered Importer, Producer Importer, and/or Import Approval (PI)—used for pre-border checks or post-border verification.
License lifecycle rules: A PI can be amended/extended; only one active PI at a time; multiple licenses may be held for different goods; one PI may cover one or more customs declarations per the rule.
What special rules apply to API-P holders?
API-P goods generally can’t be sold/assigned, with narrow exceptions. Permitted exceptions include residual materials, capital goods used ≥2 years, complementary/after-sales/market testing, certain oil & gas items, and goods for re-export (within declared quantities).
Can I switch from API-U to API-P?
Yes, if you (a) have no active PI/LS, or (b) have not realized any imports under an active PI/LS.
How to convert: Apply via OSS, state the reason and non-realization; the system verifies and notifies via OSS and SINSW, and—if approved—INATRADE automatically revokes the prior license.
When is Technical Verification/Traceability (VPT) required?
For high-risk goods and public-interest categories.
Triggers: national security; safety/health/environment; public morality; essential consumer goods; non-new capital goods; and strategic raw materials.
Exemptions: certain direct/continuous transit and re-export movements.
Execution: by Ministry-appointed surveyors; applications filed via surveyor e-systems.
How do I apply for import licenses—and what will they contain?
Apply electronically via SINSW → INATRADE; SLA up to 5 working days after complete submission.
Flow: e-submission → completeness check → upload docs → admin verification → decision → e-issuance via INATRADE and return through SINSW.
How do imports work in special zones (FTZ/KEK/TPB)?
Entry into zones is broadly liberal; exit into the Customs Territory triggers import rules.
Aspect
KPBPB (FTZ)
KEK (SEZ)
TPB (Bonded)
Import policy (entry)
Not subject, except consumer protection & HSSE
Not subject unless set for national interests
Not subject
Exemption authority
FTZ Area Council
National SEZ Council
Ministry of Trade
Export to Customs Area (exit)
Subject to import policy
Subject to import policy
Subject to import policy
Exit exemptions (examples)
Goods wholly obtained/produced in FTZ; returned domestic goods; goods compliant at entry
Processed/assembled goods; waste/residue; used goods (≥2 yrs); goods compliant at entry
Production output; samples; waste; duty-free retail; staples for border areas; used goods (≥2 yrs)
License issuer (entry)
FTZ Mgmt Head
SEZ Admin / SEZ Secretariat
Dir. Gen. Foreign Trade
License issuer (to Customs Area)
Dir. Gen. Foreign Trade
Dir. Gen. Foreign Trade
Dir. Gen. Foreign Trade
System integration
FTZ → SINSW → INATRADE
SEZ Secretariat → SINSW → INATRADE
Direct via SINSW & INATRADE
Note: All zones remain subject to import prohibitions (e.g., hazardous/B3 waste and other restricted products).
What about imports under export-facility schemes?
The Exemption Scheme (KITE) waives the general import policy for inputs used in processing/assembly/installation for export. The MoT may still impose policies for national priorities, and general prohibitions continue to apply.
Are there exemptions for non-business imports?
Yes—tailored to whether the importer has NIB (API) and whether goods are free or restricted.
Examples include government institutions, sports-purpose imports, and grant/aid scenarios. Depending on the category, exemptions can cover import license, VPT, and port designation; some require ministerial letters/recommendations and respect listed restrictions (e.g., lithium batteries, explosives).
What are business-purpose exemptions (Art. 46)?
Importers with NIB as API may be exempt from import business licensing, VPT, and port restrictions for restricted goods, per Appendix I letter B—formalized by a Director General statement on behalf of the MoT.
How are temporary imports settled if not re-exported?
Generally free of import policy during the temporary phase, but settlement without re-export is tightly scoped.
Allowed only for government projects or donations to the central government; full policy applies to new goods retained for those purposes.
Free-import (new) goods may be exempt from business licensing/VPT; used capital goods follow specific rules.
Requires MoF temporary-import permit plus project owner statement/foreign gift certificate; domestic technical verification applies for settlement.
Also: re-import is policy-exempt (customs still applies); complementary/market testing/after-sales allowed for API-P with a special certificate; Import Certificate via SINSW/INATRADE (QR/e-signature); monthly e-reporting mandatory; administrative sanctions for late/false/misuse; manual fallback if systems down; legacy licenses valid to expiry if non-conflicting.
Conclusion
Permendag 16/2025 replaces a fragmented regime with a digital, risk-based framework that pairs facilitation (OSS–SINSW–INATRADE, targeted exemptions, zone pathways) with stronger post-border oversight.
For most importers, execution comes down to mapping HS codes to the right cluster rule, sequencing IT/PI/IP filings, coordinating LS/VPT, and maintaining clean e-reporting. Working with an experienced local advisor who can align licensing, verification, and zone strategy reduces friction and keeps shipments moving.
Quietly but comprehensively, Permitindo provides this regulatory compliance check—from company setup and import licensing to surveyor coordination and monthly reporting—so your team can focus on operations. If you’d like support, fill in the form below or email contact@permitindo.com.
