WORLD TRADE
ORGANIZATIONG/LIC/N/3/IDN/2
20 May 2003
(03-2702)
Committee on Import Licensing Original:  English
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES1
Notification under Article 7.3 of the Ag reement on Import Licensing Procedures
INDONESIA
The following communication, dated 12 May 2003, has been received from the Permanent
Mission of Indonesia.
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Outline of systems
Indonesia's trade policy objective is to keep import licensing to a minimum.
1. Import licensing procedures are maintained for the purpose of Indonesia's obligations for
public health, public safety, environmental or security reasons.  Indonesia does not impose any
restrictions by value or volume on products that are subject to import licensing with the exception of
imports of alcoholic beverages.
Imports to Indonesia are free of restriction unless otherwise regulated by the Decree of the
Minister of Industry and Trade No. 230/MPP/K ep/7/1997 and its amendments, Decrees of the
Minister of Industry and Trade Nos. 111/MPP/Kep/1/1998;  411/MPP/Kep/9/1998;
254/MPP/Kep/7/2000;  233/MPP/Kep/7/2001;  528/MPP/Kep/7/2002;  642/MPP/Kep/9/2002;
643/MPP/Kep/9/2002;  732/MPP/Kep/10/2002;  751/MPP/Kep/11/2002;  and 790/MPP/Kep/12/2002.
Import licences are required for regulated goods and the issuance of the licence is the
authority of the Ministry of Industry and Trade.  In matters concerning policies of other Ministries or
agencies, relevant recommendations are required prior to the issuance of licences.
Purposes and coverage of licensing
2. The following products are covered by Indonesia's import licensing procedures, classified as
automatic and non-automatic, in line with Articles 2 and 3 of the Agreement on Import Licensing
Procedures.
                                                     
1 See document G/LIC/3, Annex, for the Questionnaire.G/LIC/N/3/IDN/2
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Automatic licensing:
CFC;  methyl bromide;  hazardous goods;  alc oholic beverages and their immediate raw materials
containing alcoholic substances;  industrial salts;  ethylene and propylene;  explosives and their
immediate raw materials;  wastes and scraps;  used clothing.
Non-automatic licensing:
Cloves;  textiles;  iron and steel;  synthetic lubricating oil (base oil/raw material);  sugar;  agricultural
hand tools.
3. The system applies globally.  Importers are free to choose the source of goods.4. Indonesia's import licensing procedures are not intended to restrict the quantity or value of
import.  Regulations on selected imported goods are intended to safeguard public health, security,
public safety, public morals, environmental protection, fulfilling obligations in international
agreements and other legitimate needs.
5. The primary legal base for licensing is the Trade Ordinance (Bedrijfsreglementerings
Ordonnantie) of 1934 and its amendments.
Other laws that govern the importation of specific goods are:
• Law No. 23 of 1992 concerning Public Health (Undang-Undang No. 23 tahun 1997 tentang
Kesehatan)
• Law No. 5 of 1997 concerning Psychotropic (Undang-Undang No. 5 tahun 1997 tentang
Pshycotropika)
• Law No. 22 of 1997 concerning Narcotics (Undang-Undang No. 22 tahun 1997 tentang
Narkotik)
• Law No. 23 of 1997 concerning the preservation of the environment (Undang-Undang No. 23
tahun 1997 tentang Pengelolaan Lingkungan Hidup)
• The Explosive Ordinance (Explosiven Ordonnantie) of 1931 and its amendments
The administration of the licensing system is undertaken by authorities for different products.The licensing requirements applicable to stipulated goods cover both imports and local
products.  Licensing requirements pertaining to importers also apply to domestic manufacturers.
Procedures
6. For quota goods:
Quota system applies only to imports of alcoholic beverages and their immediate raw
materials containing alcoholic substances.  Overall amounts of the annual quota are based onconsensus among the Ministry of Industry and Trade, the Ministry of Tourism and the Indonesian
Association of Hotels and Restaurants (represents hotels, restaurants and duty-free shops).
The Ministry of Industry and Trade appoints importers and allocates quotas.
I. Information on the amount of quota and appointed importers is published in the national
newspaper and other publications.
II. Quotas are determined on an annual basis.G/LIC/N/3/IDN/2
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III. Import quotas are allocated only to appointed domestic companies.
IV-V. Not applicable.
VI. Appointed companies are free to import the goods at any time during the quota period.
VII-X. Not applicable.XI. No.7. For non-quota goods:
Import licences for industrial salts, ethylene and propylene, explosives, motor vehicles,
wastes and scraps, and hazardous goods are reserved for qualified companies.  A qualified company is
a manufacturing company that uses any of these imported goods solely for their own production
process.  Licences to import synthetic lubricating oil, artificial sweeteners and agricultural hand toolsare issued only to approved importers.
(a) The range of processing time taken for the various licence applications falls within the
stipulated periods provided in Article 2(a)(iii) for automatic licensing and Article 3.5(f) for
non-automatic licensing.  Depending on the products, applications for import licences may besubmitted as far in advance as one working day prior to importation, normally one week in
advance.
No.
(b) No.
(c) In all cases, there are no limitations as to the period of the year during which application for
licence and/or importation may be made.
(d) The importer does not have to approach more than one administration body.  Applications are
considered only by the Ministry of Industry and Trade.
8. The application may be refused if other relevant Ministries or agencies so recommend.
Reasons for refusal are given.  Companies are free to request the Minister of Industry and Trade to
reconsider their application.
Eligibility of importers to apply for licence
9.(a) Not applicable.
(b) All Indonesian citizens or registered Indonesian companies are eligible.Documentational and other requirements for application for licence
10. Documents required are:
• Trade licence
• Manufacturing licence
• Taxpayer identification number
• Recommendation from other relevant Ministries or bodiesG/LIC/N/3/IDN/2
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11. Ordinary customs documents such as bill of lading, invoice and import declaration.
12. No licensing fee.
13. No.
Conditions of licensing
14. The validity period of each licence is one year.15. No penalty is imposed.16. Licences are not transferable to other companies or importers.17.(a)-(b)  Not applicable.
Other procedural requirements
18. No.
19. Indonesia implements no control on foreign cu rrency exchange (Government Exchange, and
its amendment in the Government Regulation No. 24 of 1985).  No permits are required to obtain
foreign exchange for imports.
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