Importer of Record In Indonesia – A Legal & Inexpensive Way To Import

Importer of Record In Indonesia – A Legal & Inexpensive Way To Import

  • InCorp Editorial Team
  • 24 August 2023
  • 3 minutes reading time

Importer of Record Service – What Is It?

An Importer of Record is a legal entity registered in Indonesia that is responsible for all the documents and entry requirements for importing goods into the country. The Importer is registered under the Directorate General of Customs and Excise and has official licenses and permits to carry out import activities.

The reason for using an Importer Of Record in Indonesia is quite straightforward. You have the products, the importer of record has a legal entity registered in Indonesia, and the required documents.

To be more specific, an importer of record service provides the following

  • Appropriate entry documents for clearance through customs
  • Payments for any levies, duties, or fines
  • Product certification and classification
  • All other responsibilities pertaining to importation

Business owners planning to import products into Indonesia independently should thoroughly understand Indonesia’s import and export, BPOM registration and distribution regulations, and licenses. And while it is common knowledge that a company must first set up a legal business entity in Indonesia before importing any goods, many have underestimated the procedure, paperwork, and time taken.

Establishing a trading company in Indonesia could take five months or longer. And it is only when the company is established, can the business move forward to secure an Import License via OSS.

Navigating Indonesia’s regulations can sometimes deter foreign companies from importing their products. An Importer of Record (IoR) is a legal service that enables companies to import products into Indonesia, through an import partner. Read on to get an overview of how an IoR works in Indonesia.

Benefits Of Using An Importer Of Record

undername import indonesia

There are many benefits that come with using an Importer Of Record service, for both import companies and manufacturers in Indonesia.

Hassle-Free Global Logistics: Since importing involves more than one country, an importer of record will undertake local taxes and legal entry points.

Risk-Free: There are no custom risks of shipment delays and penalties for importers or manufacturers who do not have the required documents and import approval from the authorities.

Other Benefits

  • The shipment clearance process becomes simpler
  • A transparent process that is fully in compliance with all export and import regulations
  • It’s not necessary to establish an import legal entity in Indonesia just for importing purposes

The Import Process

  1. Provide necessary information to Cekindo who serves as your Importer Of Record.
  2. You should confirm with your supplier, seller or shipper overseas beforehand that Cekindo will serve as your company’s importer of record.
  3. After the confirmation with your overseas exporters, you will need to verify the shipping documents as well.
  4. Cekindo will then evaluate and confirm the importing goods. Once there we have clearance, we will proceed with the import and shipping of the goods.
  5. Once the import goods have arrived at the Indonesian port, Cekindo has already had all the documents ready for customs clearance and freight forwarding.
  6. On behalf of your company, Cekindo will clear all payments in regards to customs taxes and duties upon the receipt of payment from you.
  7. You can choose to pick up your goods from Cekindo or to opt for delivery of products to your location.

While you focus on the core aspect of your business, InCorp’s comprehensive product registration and import solutions can help you in the technical facets of starting a business in Indonesia. To find out more, please fill out the form below and an IoR expert will be in touch with you shortly.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.