Business Setup in Indonesia
There are several ways to break into the Indonesian market, but finding the setu...
The growth of Chinese products exports fell by 3.9% in April 2022. The number stated a new low export rate since June 2020, with the downturn in the growth trend mainly due to the stringent COVID-19 restrictions imposed in Beijing. The imposing conditions caused an enormous toll on the country’s trade industry.
Following the sharp fall in Chinese products exports in March, imports also stagnated in April. The number of imports showed no growth amidst restrictions, and these numbers reflect how China has lost momentum due to prolonged lockdowns in its economic hubs.
The Chinese government’s attempt to deal with the outbreak has resulted in the Shanghai port, the world’s largest port, being massively disrupted. The same has caused significant shipping delays at the port. Logistical networks have been significantly impacted as the restrictions have negatively affected the delivery of goods. Factories across the country have also shut down in the face of the zero-COVID policies.
Figures are still expected to get much worse due to the lockdowns. The strict containment measures keep the Chinese products export growth at a low rate. Falling external demand and loss of orders are the natural repercussion of the restrictions.
The overall economy of China also takes a hit as export growth has been a vital driver of the economy over the years. The prolonged change has caused a significant impact on the economy.
As other countries continue to transition from recovery to expansion, Chinese exports are gradually replaced. There is little to no doubt surrounding the reason behind such sluggish figures. Economists reveal that it is most definitely the lockdown rules which has led to difficulties in production and supply chains.
Indonesia’s trade performance with China is encouraging because of a significant jump compared to last year’s figures. The positive trend is in the total growth of Indonesia’s trade and exports to China. Indonesia’s rank as a reporting country to China continues to be at competitive levels compared to other ASEAN member countries.
China appreciates Indonesian exporters who continue to deliver despite their challenges to keep exports high. This achievement goes hand in hand with the coordination and hard work shown by the Ministry of Trade and the Indonesian Embassy in Beijing.
Intense coordination proves beneficial in overcoming various obstacles and ensuring access to Indonesian products in China.
Companies must secure their Angka Pengenal Importir (API) before importing to Indonesia. Obtaining the license is mandatory by the Minister of Trade through Regulation No. 59/M-DAG/PER/9/2012. There are three main groups of imports as recognized by Minister of Trade Regulation No.54/M-DAG/PER/10/2009, namely: products that are regulated, prohibited and agreed to import.
Each of the categories has different requirements. Companies with the two documents mentioned before may obtain their import permit. Companies that do not have their Nomor Identitas Kepabeanan (NIK) or Nomor Registrasi Importir (SPR) are only permitted to do imports once. Such that NIK and SPR come before the import permit.
For consumable products like food and beverage, it is crucial to secure approval from Badan Pengelola Obat dan Makanan (BPOM) before importing such products.
First, the company must register by uploading the necessary information of the company and a copy of the Tax Payer ID, business licenses, and other supplementary permits to e-reg.pom.go.id.chinese p
Following the evaluation and verification by BPOM officers, your company will receive its User ID and password. After registering your company, visit the same page, log in with the information mentioned earlier, and input data on the products as requested by the website.
The website will then generate a bill to be paid by the company for the verification fee. Following validation by BPOM officers, the company will now receive a Nomor Izin Edar electronically.
Electronics are generally not as tricky as food and beverage as they do not require prior approval from BPOM. The main requirement for importing electronics is a letter submission addressed to the Directorate of the Electronics and Telematics Industry under the Ministry of Industry.
The letter contains the information regarding the Product Introduction Certification Form, Identity number of each electronic gadget according to the quantity to be imported, Certification of Telecommunication Tool and Equipment issued by the Ministry of Communications and Informatics, Tax Payer ID, Real Product Brochure, Deed of Incorporation of company and other supplementary permits and licenses.
Companies looking to streamline the process of applying for imports may reach out to the professionals in InCorp Indonesia (formerly Cekindo) who provide services regarding securing business licenses and product registration.
Edy is the Legal and Delivery Manager at Cekindo. He focuses on internal and external legal compliance with the laws of the Republic of Indonesia. During his career, he specialized in bankruptcy and insolvency at a law firm and also led a prominent social foundation in Indonesia. He is a sworn advocate at the Indonesian Bar Association, a licensed mediator from the Supreme Court of the Republic of Indonesia, a Certified Legal Auditor from the Indonesian Legal Auditor Association, and a Certified Legal Translator from the University of Indonesia.