Cekindo Business International is now InCorp Indonesia. Learn more.
InCorp offers a comprehensive range of solutions to ease the company registration process and help you create a viable roadmap for your business.
Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the country’s complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
Learn more about the food & beverage product registration services in Indonesia
Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
Learn more about the household product registration services in Indonesia.
Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
Organizations must continuously evolve and transform to remain competitive and relevant in today’s global environment ...
Companies face many opportunities and challenges as a result of a changing market and regulatory landscape ...
Adopting Environmental, Social, and Corporate Governance (ESG) practices can improve your company’s value ...
Risk Management services from InCorp Indonesia can assist companies in building confidence when making future business decisions ...
Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
Our transfer pricing services provide you with a hassle-free experience while still complying with the legal aspects of transfer pricing in Indonesia.
As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
Both natural and legal persons are entitled to open a bank account in Indonesia. Find out how to open a bank account in Indonesia, here.
InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
InCorp can help foreigners to get the driving license in Indonesia, whether SIM A or SIM C. Check out the requirements and the procedure, here.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
As an entrepreneur running an export or import business in Indonesia, having a shipment held in Indonesian customs that causes a dreaded shipment delay is likely to destroy your reputations and incur cost in terms of revenue loss. Whether it is incoming or outgoing goods, whatever gets stuck will keep you up all night pacing at the office thinking of solutions.
It is not surprising for business owners doing business in Indonesia that the import regulations in Indonesian can change constantly and many business owners’ worst nightmare suddenly become a reality when their goods get stuck in Indonesian customs.
This article provides you with guidelines on how to navigate the bureaucratic red tape in Indonesia and how you can prevent your goods from being stuck at Indonesian customs from the very beginning, so that you can run a seamless export or import business in Indonesia.
There are several reasons your goods might be stuck at Indonesian customs. These reasons can be categorised in their severity from high to low. High severity means your goods are actually prohibited for being imported into Indonesia, whereas low severity means that your imported goods might have incorrect paperwork.
The consignee you engage in Indonesia for your imported goods may not have an import license or relevant supporting documents for import. Some specific goods will need more paperwork or documents in addition to just the import license.
The forwarder of your imported goods in Indonesia does not inform you about the required documents that you need to show to the customs. This is why your goods get stuck once they arrive in the territory of Indonesia.
Pemeriksaan Jalur Merah (PJM) is the red channel inspection in Indonesia. It is a physical inspection performed on selected imported goods in addition to the document verification. Thus, it is not uncommon that many end-to-end import or export providers will use the door-to-door services so that they do not have to pay duty and taxes to the customs.
However, as of July 2017, the government of Indonesia enforced a new regulation to shut down this kind of service in the country. This shutdown has led to many import goods stuck in customs due to unpaid taxes and incomplete documents.
Whatever the reason your goods are held, you will need to prepare the following documents in order to get your goods moving and avoid issues with customs in Indonesia.
First and foremost, you will need to acquire an Importer Identification Number (API) through the newly implemented Online Single Submission (OSS) system. Then, you can start importing goods with API.
Before you go ahead with an API application, you need to know if you are going to be a general importer or if you would like to import goods such as raw material or machinery for your own production. An API-U is required for the general importer and an API-P is necessary for import for your own production.
Related article: Securing An Import License via OSS
A proforma invoice or a commercial invoice is needed with adequate information for customs to determine the import duties, taxes and shipment eligibility. The total value of the shipment is presented in US dollars.
Compared to a commercial invoice, a proforma invoice is a simple invoice with only sufficient information to decide the duties and arrange the consignment examination. On the other hand, a commercial invoice has more information that provides the import goods’ real value.
You will need to prepare a packing list with information such as product details, gross weights, dimensions, and volume of shipment. A packing list together with your shipment is to check if your goods for shipment are packed properly and accurately. It has a similar purpose as a proforma or commercial invoice.
Air waybill (AWB) and bill of lading (BL) are important documents for the acknowledgement of the shipment transport. An AWB is required for goods imported through air freight; and a BL is mandatory for goods shipped via sea freight.
It is highly recommended for you to get familiar with procedures at the Indonesian customs in order to tackle the issue that many importers face in Indonesia.
1. Import Declaration Form (Persetujuan Impor Barang – “PIB”)
It is compulsory to declare all imported goods to the customs in Indonesia. The PIB will be released upon the process of the shipment. This form contains information such as import duties (different rates based on the HS code), 10% value-added tax, and 2.5% income tax.
With or without the import licenses, the PIB will be issued anyway for goods declaration. A PIB does not mean that your shipment is released because you will still need all the necessary import licenses.
2. Red Channel Inspection (Pemberitahuan Jalur Merah – “PJM” )
All imported goods will be processed through three channels upon arrival:
Green channel: to verify documents, the goods will be cleared
Yellow channel: to request for additional documents in order to release the imported goods (Cekindo can assist in preparing these supporting documents)
Red channel: to inspect physical goods for every shipment, one by one
Oftentimes, your imported goods may be held in the red channel due to the changes in regulations, taxes, HS codes, etc.
If this happens, the customs will release a Notice of the Red Channel. To obtain the goods being held at the red channel, you will need to provide Cekindo with the PJM’s response and the contact of the customs officer who is in charge of your goods. Cekindo will assist you in getting your goods out of the Indonesian customs.
There are three common solutions for the Indonesian customs to release your goods:
Pay the incurred charges to PIB
Paying the fees due to PIB is one of the three solutions discussed. These fees include import duty, income tax, value-added tax, and consignee charges. The total charges to get your shipment out of the customs can be quite pricey.
Put your goods up for auction
Another option is to put your goods up for auction. This involves a bidding process and your goods will be sold to the highest bidder in the auction.
Re-export then re-import
The customs might offer the third option, which is you need to re-export and then re-import your goods, as long as your goods do not fall under the prohibited items.
All in all, the best and most convenient way for you to import your goods without worrying that they will be stuck at the customs is through this ultimate solution: engaging in an undername import service in Indonesia.
An undername importer, also known as the importer of record, enables you to import your products to Indonesia immediately without the need to obtain any import licenses. Through Cekindo’s undername import service, you are not liable to any taxes as well because it will be taken care of.
Get in touch with us today to learn more about exporting goods to Indonesia and our undername import service by filling in the form below. Or visit our offices in Jakarta, Bali and Semarang. We can help your export or import business in Indonesia easier.