Qualifying as a Reputable Exporter and Importer in Indonesia

Indonesia’s Ministry of Trade (MoT) issued MoT Reg 17/2021 in April 2021, which sets out the criteria for qualifying as a reputable exporter and importer in Indonesia and the benefits it entails.

Among the benefits is the instant approval of business licenses, such as export approvals and import approvals as well as the removal of surveyor report requirements for mandatory commodities.

MoT Reg 17/2021 is an implementing regulation to Government Regulation 29 of 2021 (GR 29/2021), which was enacted in early 2021 to simplify regulations in Indonesia’s trade sector. GR 29/2021 is also an implementing regulation of the Omnibus Law.

What is a reputable exporter or importer?

MoT Reg 17/2021 describes a reputable exporter and importer as businesses that have shown a high level of compliance to implement the laws and regulations set by the government in regard to imports and exports. According to The Jakarta Post, the government has identified over 700 businesses that can be considered reputable.

Despite the advantage of a reputable exporter or importer being instantly approved for business licenses, they are not exempt from being inspected by the authorities.

Obtaining export and import approvals

The types of business licenses reputable exporters and importers are eligible to receive are called the export approval license and the import approval license.   

For reputable exporters that hold an export approval license, they are automatically approved to export some nine types of goods and commodities. Some are listed below.

For reputable importers that hold an import approval license, they are automatically approved to import 77 types of goods and commodities. Some are also listed below.

How can you be classified as a reputable exporter and importer?

To be recognized as a reputable exporter and importer, MoT Reg 17/2021 sets out the following criteria:

For exporters

• Fulfill the obligation to report on the realization of all exports that have been undertaken for every commodity;
• Must be a valid taxpayer for the last two years, which will be confirmed by the Ministry of Finance;
• Have carried out the export of goods in the last two years in accordance with the line of business;
• The business has never been the subject of administrative sanctions due to violating the regulations for exporters;
• The business has never been subject to criminal sanctions; and
• The business is currently not under administrative sanctions.

For importers

• Fulfill the obligation to report on the realization of all imports that have been undertaken for every commodity;
• Must be a valid taxpayer for the last two years, which will be confirmed by the Ministry of Finance;
• Have carried out the import of goods in the last two years in accordance with the line of business;
• The business has never been the subject of administrative sanctions due to violating the regulations for exporters;
• The business has never been subject to criminal sanctions; and
• The business is currently not under administrative sanctions.

Another way to be determined as a reputable exporter and importer is if the business has been awarded the status of an Authorized Economic Operator or as a Main Customs Partners.

The Director-General of Foreign Trade on behalf of the Minister of Trade will determine who is granted the reputable exporter and importer status.

Suspension and revocation of the reputable exporter and importer status

Businesses can have their reputable exporter and importer status suspended if they fail to uphold any of the criteria mentioned or they are under investigation for criminal acts in the trade sector.

The status as a reputable exporter and importer can be revoked if the business does not meet the suspension conditions after a period of no later than 30 days, after the date of suspension. Further, the status can also be revoked if they are found guilty of a crime in the trade sector, abuse of the business license, and/or have received three suspension sanctions within three years.

Further Reading

• The Guide to Singapore’s Import and Export Procedures
• Indonesia Regulates the Prohibition of Certain Goods for Import and Export Under the Omnibus Law
• Import and Export Procedures in Indonesia – Best Practices

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