Licensing Procedures for Imports and Exports of Oil, Gas and Other Fuels in Indonesia

PwC reported that Indonesia has the sixth largest coal bed methane reserves in the world at 453 trillion cubic feet with shale gas reserves estimated at 574 trillion cubic feet. In addition, according to the BP Statistical Review of World Energy 2018, the natural gas reserves in Indonesia were recorded at 102.9 trillion cubic feet. Gas production in Indonesia has reached 68 billion m3, contributing to 60% of the country’s total oil and gas production. In order to improve the control over exports and imports of oil, gas and other fuels in Indonesia, as well as to simplify the business license process in Indonesia, the Regulation No. 21 of 2019 on Export and Import Provisions for Oil, Gas and Other Fuels has been issued by the Minister of Trade. This newly enacted regulation will replace the Regulation of the Minister No. 03/M-DAG/PER/1/2015.

The Implementation of Regulation 21/2019

Generally, Regulation 21/2019 covers issues with regard to securing relevant imports and exports licenses for oil, gas, and other fuels in Indonesia:

1. Scope of exported and imported fuels
2. Oil, gas and other fuels exports requirements and procedures
3. Oil, gas and other fuels imports requirements and procedures

Scope of Exported and Imported Fuels

Types of imported and exported oils, gas, and other fuels for exports and imports that are included in the Regulation 21/2019 are stated in the following:

Oil

• Oil with HS Code 27.09. It includes petroleum oils with its derivation from minerals that contain raw bitumen
• Oil with HS Code 27.10. It includes petroleum oils deriving from minerals that contains non-raw bitumen

Gas

• Gas with HS Code 27.11. It includes petroleum gas and other hydrocarbon gas
• Gas with HS Code 29.09. It includes ether, ether-phenol, and ether alcohol

Other Fuels

• Fuel with HS Code 22.07. It includes ethyl alcohol with 80% alcohol and has not been denatured
• Fuel with HS Code 38.26. It includes bio-diesel and other related mixes

The exports and imports of oil, gas and other fuels that are used for research purposes or as samples are exempted from the mentioned provisions. However, importers and exporters must first get approval from the Directorate General of Foreign Trade

Oil, Gas and Other Fuels Exports Requirements and Procedures

Exports of oil, gas and other fuels can only be carried out by the following parties, only if they have registered themselves as exporters and have secured the export approval from the Minister of Trade:

Oil and Gas

• Business entities (Badan Usaha or BU) with upstream and downstream oil-and-gas business operations
• Permanent establishments (Bentuk Usaha Tetap or BUT) with upstream oil-and-gas business operations

Other Fuels

• BU with other fuels business operations

State-owned Oil and Gas

• Registered oil-and-gas exporters appointed by an oil-and-gas authority with export approval from the Minister of Trade

New Online Mechanism for Oil, Gas, and Other Fuels Exporters

Registration as Exporters

• Online application submission to the Directorate General
• Decisions will be made in 5 working days
• Registration certificate is issued electronically and is valid for three years

Obtaining Export Approval

• Online application submission to the Directorate General
• Decisions will be made in 5 working days
• The validity is based on Export Recommendation

Oil, Gas and Other Fuels Imports Requirements and Procedures

Imports of oil, gas and other fuels can only be carried out by the following parties, only if they have secured the import approval from the Minister of Trade:

Oil and Gas

• BU with upstream and downstream oil-and-gas business operations
• Direct consumers of oil, gas and other fuels

Other Fuels

• BU with other fuels business operations
• Direct consumers of oil, gas and other fuels

New Online Mechanism for Oil, Gas, and Other Fuels Importers

Imports of oil, gas and other fuels do not require importer registration anymore. Only import approval is needed.

Obtaining Import Approvals

• Online application submission to the Directorate General
• Decisions will be made in 3 working days
• The validity is based on Import Recommendation

Getting Your Business License in Indonesia with Cekindo

A good understanding of the import and export rules and regulations in Indonesia is crucial to any business. Cekindo can help simplify the process to get your business license in Indonesia for you while complying with the latest regulations on oil, gas and other fuels exports and imports.

Get in touch by filling in the form below or visit our offices in Jakarta, Bali and Semarang.