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Entering Indonesia’s Import-Export Sector: A Guide for Foreign Investors

Note: As of October 2025, Regulation No. 5/2025 reduced the minimum paid-up capital for foreign companies to IDR 2.5 billion, with the IDR 10 billion investment plan requirement remaining in place.


Indonesia’s import-export sector presents significant opportunities for foreign investors, driven by strong domestic consumption, a growing industrial base, and access to global trade routes. With reforms aimed at streamlining company incorporation and foreign investment procedures, it is now easier than ever for international businesses to enter the Indonesian market.

However, operating in this sector requires full compliance with legal, licensing, and structural requirements unique to Indonesia’s regulatory environment.

The Role of Foreign Investors in Indonesia’s Trade Ecosystem

Indonesia maintains a liberal approach toward foreign participation in the trading sector. Under the Positive Investment List, most import-export activities are open to 100 percent foreign ownership, with limited exceptions for specific sensitive industries. Foreign investors are allowed to engage in trading activities, including import and export, by establishing a properly licensed and capitalized company.

This is particularly relevant as Indonesia continues to pursue trade expansion and deepen its integration with global supply chains.

Establishing a Compliant Trading Company in Indonesia

To operate in the import or export business, foreign investors must establish a limited liability company, or PT PMA. This foreign company structure is a prerequisite for all commercial operations involving foreign ownership. The incorporation process includes approval from the Ministry of Law and Human Rights and is largely like that of local companies.

Foreign investors must also comply with the minimum capital requirement of IDR 2.5 billion. This capital must be declared and supported by documentation at the time of business registration.

Setting Up an Import Business in Indonesia as a Foreign Investor

Establish a Foreign-Owned Company

To begin, foreign investors must establish a PT PMA, the required legal structure for engaging in commercial activities in Indonesia. This company must comply with the minimum capital requirement of IDR 10 billion.

Register For a Business Identification Number

Once the PT PMA is formed, the company must obtain a Business Identification Number (Nomor Induk Berusaha) through the Online Single Submission (OSS) system. The NIB functions as your company’s general business license and is necessary to apply for sectoral permits.

Obtain A Taxpayer Identification Number (NPWP)

The PT PMA must also register with the Indonesian tax authority to obtain a Taxpayer Identification Number. This number is required for tax reporting and serves as a prerequisite for additional licensing.

Apply For the Appropriate Import License

Foreign importers must apply for either a General Import License (API-U) or a Limited Import License (API-P), depending on whether the goods are for resale or internal company use. This license must be aligned with the company’s KBLI classification.

Register With the Directorate General Of Customs And Excise

To import goods legally, the company must register with the customs authority. This enables the firm to access the national import system and ensures it is recognized for customs clearance procedures.

MAP Resources Indonesia helps foreign investors establish fully compliant trading companies in Indonesia. Contact us today.

Appoint A Local Distributor for Domestic Sales

Foreign-owned companies are prohibited from distributing imported goods directly to retailers or consumers. To meet this requirement, the PT PMA must appoint a 100 percent Indonesian-owned distributor (PMDN) to handle all domestic sales and fulfillment.

Establishing an Export Business in Indonesia as a Foreign Investor

Incorporate A Pt PMA for Export Operations

As with import businesses, export operations require the formation of a foreign-owned limited liability company. The PT PMA must be established per Indonesian corporate law and capital investment regulations.

Obtain The NIB and NPWP

After incorporation, the company must obtain a Business Identification Number and register for a Taxpayer Identification Number. These two identifiers are necessary for conducting export activities legally.

Register With Customs for Export Eligibility

The company must register with the Directorate General of Customs and Excise to gain access to export systems and submit relevant documentation for outbound shipments.

File Export Declarations (PEB)

Before goods can be exported, the company must submit an Export Declaration (Pemberitahuan Ekspor Barang) for each shipment. This is a mandatory document for customs clearance.

Secure Certificates of Origin (Ska) When Required

If the export destination or trade agreement requires proof of origin, the company must obtain a Certificate of Origin (Surat Keterangan Asal). This may qualify the shipment for tariff reductions or preferential treatment.

Apply For Export Licenses for Regulated Goods

Some goods, such as raw minerals, palm oil, or fishery products, require an Export Business License. These licenses are applied for through the Indonesia National Single Window (SINSW) platform.

Comply With Technical and Customs Requirements

Exporters must comply with all applicable regulations, including labeling, environmental standards, and customs valuation. Failure to meet these standards may result in delays, penalties, or revoked licenses.

Regulatory Safeguards for Foreign-Owned Trading Companies

The Investment List remains the primary reference for determining whether a trading activity is open to foreign ownership. Activities not listed are assumed to be fully open. Import-export businesses must be registered with the Directorate General of Customs and Excise and must meet sector-specific regulations as issued by the Ministry of Trade and related authorities.

Technical compliance, such as product labeling standards, safety certifications, and use of the Indonesian language for certain goods, may apply depending on the product classification. Non-compliance can result in enforcement actions, including shipment rejection or license revocation. A strong internal compliance framework is essential to mitigate these risks.

Summary of Key Compliance Conditions

To provide a clear overview, the following table summarizes the key regulatory conditions for foreign participation:

Activity Allowed Foreign Ownership Key Licenses and Requirements Distribution Restrictions
Import Up to 100% in most sectors PT PMA, API-U or API-P, NIB, NPWP, Customs Registration Must appoint 100% Indonesian-owned distributor (PMDN)
Export Up to 100% in most sectors PT PMA, NIB, NPWP, PEB, SKA (if required), Export License (if applicable) No restriction on outbound sales

Partner with MAP Resources Indonesia to Ensure Compliance

MAP Resources Indonesia supports foreign investors in navigating the complex process of setting up and operating import-export businesses in Indonesia. Contact us today at info@mapresourcesindonesia.com to establish your trading business with confidence and clarity.

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