On 30 June 2025, the Minister of Trade (“MoT”) issued MoT Regulation No. 16 of 2025 on Import Policies and Regulations (“MoT Reg. 16/2025”), which revokes and replaces the previous MoT Regulation No. 36 of 2023 on the same subject (“MoT Reg. 36/2023”). MoT Reg. 16/2025 is effective 30 days from the date, or 30 August 2025.
The issuance of MoT Reg. 16/2025 marks the government’s continuing effort to streamline Indonesia’s import regulatory framework, enhance transparency in import licensing processes, and ensure greater compliance with trade control mechanism. This new regulation seeks to address the regulatory gaps and inconsistencies identified under MoT Reg. 36/2023 by introducing both substantive amendments and procedural improvements.
These key changes reflect the government’s broader policy direction toward improving the ease of doing business while maintaining effective oversight of import activities. We have highlighted several updates, namely: (i) Conversion Provision of Importer Status, (ii) Exemptions for Producer API; (iii) Import Approval Revocation, (iv) New Importing Timeline and (v) Structured and Expanded Sanctions.
Conversion Provision of Importer’s Status
Under the current import licensing regime, the Business Identification Number (Nomor Induk Berusaha or “NIB”) also functions as the Importer Identification Number (Angka Pengenal Importir or “API”). The classification of API under this new regulation is the same as that in the previous regulation. MoT Reg. 16/2025 classifies API into:
(i) General API (Angka Pengenal Importir Umum or “API-U”): applicable to importers of goods for resale purposes; and
(ii) Producer API (Angka Pengenal Importir Produsen or “API-P”): applies to importers of goods used as raw materials or components of further production.
(Article 3 (1) and (2) of MoT Reg. 16/2025)
Please note that MoT Reg. 16/2025 remains unchanged in the provision that a business actor may hold only a single API, depending on their business needs. However, MoT Reg. 16/2025 amends the criteria for converting API-U into API-P, which is elaborated as follows:
| Previous Criteria under MoT Reg. 36/2023 (Article 2 paragraphs 7 and 8) | Revised Criteria Under MoT Reg. 16/2025 (Article 8 paragraphs 2 and 3) |
| 1. The importer has completed all import activities under its Import Approval and/or Surveyor Report; and | 1. The importer does not hold any valid import business license, namely Import Approval, and/or Surveyor Report; |
| 2. The NIB with active General API status has been active for at least one year; and | 2. The importer holds a valid import business license but is not conducting any import activities right now; and |
| 3. Provide a statement through the Online Single Submission System (“OSS”) stating the reasons for the conversion. | 3. Provide a statement through the OSS stating (i) the reasons for the conversion, and (ii) the importer is not conducting any import activities right now but holds a valid Business License in the field of Import in the form of a valid Import Approval and/or a valid Surveyor’s Report. |
Exemptions for Producer API
As mentioned above, API-P and API-U serve different importation purposes depending on the business actor’s needs. For example, an API-P is granted only to business actors that import capital goods (i.e., raw materials, machinery, etc.). These goods cannot be traded or
transferred to other parties.
However, some exemptions apply for such importation, which are as follows:
a. Residual Materials – Remaining raw or auxiliary materials in accordance with applicable laws and regulations.
b. Used Capital Goods – Capital goods originally imported as new in condition by API-P holders, but they have been used for at least two years.
c. Complementary or Testing Goods – Goods imported for complementary purposes, market testing, or after-sales services.
d. Oil and Gas Businesses – Goods traded or transferred by licensed oil-and-gas processing or trading companies.
e. Re-exported Goods (New Addition) – Imported capital goods, raw materials, or material goods that are used in supporting production that are later re-exported, aligning with and not exceeding the quantity originally declared in the import customs notification.
(Article 7 (4) of MoT Reg. 16/2025)
Import Approval Revocation
The transitional provisions under MoT Reg. 16/2025 stipulate that import business licenses such as Registered Importer, Producer Importer, Import Approval, exemption documents, explanatory letters, and/or certificates already issued remain valid until their expiry date, provided they were granted under the import regulations preceding MoT Reg. 16/2025. (Article 93 paragraph a of MoT Reg. 16/2025).
However, MoT Reg. 16/2025 expressly revokes and invalidates certain import approvals issued under the previous framework, namely:
a. Import Approval for Forestry Products;
b. Import Approval for Plastic Raw Materials;
c. Import Approval for Subsidized Fertilizers;
d. Import Approval for Other Fuels – Fuels and Fuel Mixtures; and
e. Import Approval for Other Fuels – Non-Fuel and Non-Fuel Mixtures.
(Article 93 (c) of MoT Reg. 16/2025
New Reporting Timeline
The previous regulation mandated importers having the approvals to report their planned and actual imports, on the 15th of the following month.
MoT Reg. 16/2025 now provides a specific reporting timeline for the importers under Surveyor Report, requiring them to provide the report within 30 days, after it is used as a supporting customs document, or import requirement for post-border inspection (Article 61 (4) of MoT Reg. 16/2025).
Structured and Expanded Sanctions
MoT Reg. 16/2025 introduces a more structured and systematic framework of sanctions against violators, ensuring greater regulatory certainty and accountability in import activities.
Importers may be subject to written warning for several types of violations, including: (i) discrepancies between submitted documents and data in import licensing applications or amendments; (ii) different (type or quantity) of importing goods, not as stated in the import business license or certificate; or (iii) importing goods without the mandatory Surveyor Report. (Article 75 of MoT Reg. 16/2025)
Following the initial violation, importers who have received the written warning, may be further sanctioned with one or more of the following measures:
a. Suspension of existing import licenses or certificates;
b. Deferral of new or renewal import license or certificate applications; or
c. Recommendation for the suspension of verification or technical tracing services where the import is subject to a Surveyor Report.
(Article 76 of MoT Reg. 16/2025)
Beyond administrative measures, MoT Reg. 16/2025 also introduces a stronger enforcement mechanism regarding non-compliant imported goods. According to Article 87 (1) of MoT Reg. 16/2025, these goods must be re-exported, destroyed, or withdrawn from distribution.
Furthermore, importers who fail to comply with these obligations are prohibited from submitting new import approval or verification applications for 1 year, as coordinated between Directorate of Customs and Excise and the Directorate of Consumer Protection (Article 87 (3) of MoT Reg. 16/2025).
Concluding Remarks
With the issuance of this new regulation, the Government of the Republic of Indonesia has implemented stricter trade policy. Starting with the introduction of new criteria for the conversion of API, while maintaining the flexibility for the re-export of goods used for production purposes.
There is also a new specific reporting timeline for the importers. MoT Reg. 16/2025 encourages importers to comply with the new requirements and remain proactive in their business activities to avoid administrative sanctions.
Disclaimer: The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
