DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 40/MPP/Kep/1/2003

CONCERNING
IMPORTER IDENTITY NUMBER (API)

THE MINISTER OF INDUSTRY AND TRADE,

Considering:

• 1. that in the framework of creating administration discipline of issuance of Importer Identity Number (API) more effectively and efficiently as well as observing the enforcement of Law No. 22/1999 on regional administration, it is deemed necessary to adjust provisions on Importer Identity Number (API);
• 2. that in relation thereto, a decree of the Minister of Industry and Trade needs to be issued;

In view of:

• 1. Trade Ordinance of 1934 (Statute Book of 1938 No.86);
• 2. Law No. 3/1982 on corporate registry (Statute Book of 1982 No. 7, Supplement to Statute Book No. 3214),
• 3. Law No. 5/1984 on Industry (Statute Book of 1984 No. 22, Supplement to Statute Book No. 3274),
• 4. Law No. 7/1994 on ratification of agreement establishing the World Trade Organization (Statute Book of 1994 No. 57, Supplement to Statute Book No. 3564);
• 5. Law No. 10/1995 on customs affairs (Statute Book of 1995 No. 75, Supplement to Statute Book No. 3612),
• 6. Law No. 22/1999 on regional administration (Statute Book of 1999 No. 60, Supplement to Statute Book No. 3839);
• 7. Government Regulation No. 1/1957 on distribution of companies (Statute Book of 1957 No. 7, Supplement to Statute Book No. 1144) as already amended and supplemented the latest by Government Regulation No. 53/1957 (Statute Book of 1957 No. 150, Supplement to Statute Book No. 1467);
• 8. Government Regulation No. 17/1986 on the authority to regulate, foster and develop industries (Statute Book of 1986 No. 23, Supplement to Statute Book No. 3330);
• 9. Government Regulation No. 13/1995 on industrial business license (Statute Book of 1995 No. 25, Supplement to Statute Book No. 3596);
• 10. Government Regulation No. 25/2000 on the authority of the government and the authority of provinces as autonomous regions (Statute Book of 2000 No. 54, Supplement to Statute Book No. 3952);
• 11. Presidential Decree No. 260/1967 on the affirmation of tasks and responsibility of the Minister of Trade in the foreign trade sector;
• 12. Presidential Decree No. 228/M/2001 on the establishment of the mutual cooperation cabinet;
• 13. Presidential Decree No. 102/2001 on the status, tasks, functions, authority, organizational structures and working arrangements of ministries;
• 14. Presidential Decree No. 109/2001 on first-echelon organizational units and tasks of ministries;
• 15. Decree of the Minister of Industry and Trade No. 229/MPP/Kep/7/97 on import general provisions;
• 16. Decree of the Minister of Industry and Trade No. 230/MPP/Kep/7/1997 on goods subjected to import control, as already amended several times and the latest by Decree of the Minister of Industry and Trade No.789/MPP/Kep/12/2002;
• 17. Decree of the Minister of Industry and Trade No. 12/MPP/Kep/1/98 on corporate registry;
• 18. Decree of the Minister of Industry and Trade No. 86/MPP/Kep/3/2001 on the organization and working arrangement of the Ministry of Industry and Trade;
• 19. Decree of the Minister of Industry and Trade No. 288/MPP/Kep/10/2001 concerning standard provisions on the issuance of trading business license (SIUP);
• 20. Joint Decree of the Minister of Finance and Minister of Industry and Trade No. 527/KMK.04/2002 and No. 819/MPP/Kep/12/2002 on importer administration discipline.

DECIDES:

To repeal:

• 1. Decree of the Minister of Industry and Trade No. 550/MPP/Kep/10/1999 on Importer Identity Number (API);
• 2. Decree of the Minister of Industry and Trade No. 253/MPP/Kep/7/2000 on the amendment to Decree of the Minister of Industry and Trade No. 550/MPP/Kep/10/1999 on Importer Identity Number (API);

To stipulate:

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON IMPORTER IDENTITY NUMBER (API)

CHAPTER I
GENERAL PROVISION

Article 1

Referred to in this decree as:

• 1. Import is an activity of supply goods into the Indonesian customs area.
• 2. Importer Identity Number abbreviated API is an importer identity which must be owned by every company undertaking import trade, excluding Limited Importer Identity Number (APIT) regulated separately by Decree of the Minister of Industry and Trade No. 301A/KP/X/77.
• 3. Importer is a company possessing API that imports goods.
• 4. Trading company is every form of individual business, partnership, cooperative or statutory body domiciled in Indonesia that undertakes trading business activities.
• 5. Manufacture is a business entity undertaking activities in the industrial business field.
• 6. Corporate branch is a company being unit or part of its principal company which can be domiciled in other place and be independent or be assigned to execute part of tasks of the principal company.
• 7. Minister is the Minister of Industry and Trade.
• 8. Director is the Director of Import, Directorate General of Foreign Trade, Ministry of Industry and Trade.
• 9. Provincial Service is an institution in the provincial government which is responsible for trading affairs and authorized to regulate and manage trading affairs.
• 10. Regency/city service is an institution in the regency/city government which is responsible for trading affairs and authorized to regulate and manage trading affairs.

CHAPTER II
IMPORTER IDENTITY NUMBER (API)

Article 2

(1) Import only can be executed by trading companies/manufactures already possessing API.

(2) API applies to head offices of trading companies/manufactures and all branch offices.

(3) API consists of:

• a. General Importer Identity Number (API-U);
• b. Producer Importer Identity Number (API-P).

(4) API is used for executing import throughout the Indonesian customs area.

Article 3

(1) Every trading company undertaking import is obliged to have API-U.

(2) API-U is granted to trading company importing goods exempted from import control and certain goods subjected to import control.

Article 4

(1) Every manufacture outside foreign/domestic investment that undertakes import must have API-P.

(2) API-P is granted to manufactures importing capital goods and raw materials/auxiliary materials for the purpose of their production process.

(3) API-P as meant in paragraph (1) can be treated as API-U by manufactures importing goods other than the capital goods and/or raw materials/auxiliary materials as meant in paragraph (2), which are only used for the need of the relevant manufactures.

Article 5

API is a requirement for:

• a. importing goods through the opening of L/C in foreign exchange banks and/or other payment methods commonly effective in international trade transactions;
• b. issuing Import Declaration (PIB).

Article 6

Trading companies/manufacturers possessing API are responsible fully for the import carried out the said companies or their corporate branches.

CHAPTER III
PROCEDURES AND REQUIREMENTS FOR SECURING IMPORTER IDENTITY NUMBER (API)

Article 7

(1) API is issued by the head of provincial service on behalf of the Minister in the place where the head offices of companies are domiciled.

(2) Every trading company only entitles to have one API-U.

(3) Every manufacture only entitles to have one API-P.

Article 8

(1) In order to obtain API-U, the relevant trading companies must submit application by completing the Completing Form as meant in specimen in Attachment I to this decree to heads of provincial service with a copy made available to heads of regency/city service in places where head offices of companies are domiciles by enclosing:

• a. photocopy of notary deed of establishment of companies and their amendment;
• b. names and composition of executives/executive directors companies (original );
• c. photocopy of trading business licence (SIUP)or trading business registry number (TDUP) ;
• d. photocopy of corporate registry number(TDP)
• e. photocopy of corporate taxpayer code number (NPWP) in accordance with their domiciles and NPWP of executives/executive directors of companies;
• f. photocopy of certificate of domicile of head offices which remains valid from sub-district offices, acknowledge by district offices in the case of proprietary or from building management, in the case of rent/contract;
• g. photocopy of agreement on rent/contract of business places;
• h. references of foreign exchange banks (original);
• i. color photo of executive directors of companies as many as 2 (two) sheet with the size of 2 x 3 cm;
• j. photocopy of citizenship identity card (KTP) of executives/executive direct.

(2) In order to obtain API-P, the relevant manufactures must submit application by completing the Completing Form as meant in specimen in Attachment I to this decree to heads of provincial service with a copy made available to heads of regency/city service in places where head offices of companies are domiciles by enclosing:

• a. photocopy of notary deed of establishment of companies and their amendments;
• b. names and composition of executives/executive directors of companies (original);
• c. photocopy of industrial business license from the technical institution concerned;
• d. photocopy of corporate registry number (TDP);
• e. photocopy of corporate taxpayer code number (NPWP) in accordance with their domiciles and NPWP of executives/executive directors of companies;
• f. photocopy of certificate of domicile of head offices which remains valid from sub-district offices, acknowledged by district offices in the case of proprietary or from building management, in the case of rent/contract;
• g. photocopy of agreement on rent/contract of business places;
• h. references of foreign exchange banks (original);
• i. color photo of executives/executive directors of companies as many as 2 (two) sheets with the size of 2 x 3 cm;
• j. photocopy of citizenship identity card (KTP) of executives/executive directors.

Article 9

(1) In order to ascertain the truth of documents submitted by applicants, based on the copy of applications for API received by heads of regency/city service as meant in Article 8, field inspection is carried out not later than 10 (ten) working days as from the date of receipt of the copy of application for API.

(2) The result of inspection as meant in paragraph (1) is mentioned in account of inspection (BAP) signed by heads of regency/city service or caretaker of heads of regency/city service and employees of regency/city ser

(3) Heads of regency/city service or caretaker of heads of regency/city service must have conveyed BAP as meant in paragraph (2) to heads of provincial service not later than 3 (three) working days.

Article 10

(1) Heads of provincial service or caretaker of heads of provincial service issue API or reject applications not later than 5 (five) working days as from the date of receipt of BAP as meant in Article 9 paragraph (3).

(2) Heads of provincial service or caretaker of heads of provincial service convey copy of API to the director and heads of city/regency service where BAP is made not later than 10 (ten) working days as from the date of issuance.

(3) The letter of rejection issued by heads of provincial service as meant in paragraph(1) is conveyed to applicants, with a copy made available to heads ofregency/city service where BAP is made.

CHAPTER IV
VALIDITY PERIOD OF IMPORTER IDENTITY NUMBER (API)

Article 11

API is effective for 5 (five) years, starting from the date of the issuance and can be extended.

CHAPTER V
OBLIGATIONS OF OWNERS OF IMPORTER IDENTITY NUMBER (API)

Article 12

(1) Companies owning API are obliged to report their business activities every year to heads of provincial service with a copy made available to the director and heads of regency/city service where BAP is made.

(2) Companies owning API are obliged to report any change in the form of business entity, composition of executives/executive directors, address of companies, corporate registry number (TDP) and Taxpayer Code Number (NPWP)not later than 30 (thirty) working days as from the date of the change, with a copy made available to the director.

Article 13

(1) Report on the change as meant in Article 12 paragraph(2) are validated by heads of provincial service on Form of Change as contained in Attachment X-a and/or Attachment X-b to this decree and constitutes addendum of API of the said companies.

(2) The addendum of API of companies as meant in paragraph (1) is made in 4 (four) copies respectively distributed to the director, head of provincial service, head of regency/city service where BAP is made and the relevant companies.

CHAPTER VI
SANCTION

Article 14

API is frozen if companies owning API and/or executives/exective directors of companies owning API:

• a. are being investigated by the authorized investigator because they are allegedly committing crimes related to misuse of API;
• b. fail to fulfill the obligation as meant in Article 12;
• c. violate the provisions in force in the import field; or
• d. are in certain cases on the basis of request from the minister or the appointed official.

Article 15

The frozen API as meant in Article 15 can be liquited if:

• a. investigator issued order to discontinue investigation;
• b. they are declared not guilty/freed from all charges that have permanent legal power by enclosing decision of the court;
• c. they are not proven to violate the provision as meant in Article 14 letter c;
• d. they have executed their obligation as meant in Article 12.
• e. the Minister of the appointed official asks for.

Article 16

API is revoked if companies owning API and/or executives/executive director of companies owning API:

• a. have their API frozen twice;
• b. fail to fulfill their obligation as meant in Article 12 not later than 30 (thirty) days as from the date of freezing;
• c. violate import provisions in force;
• d. falsify and/or misuse import documents and import-related letters;
• e. are declared guilty by the court for crimes related to the misuse of API and the decision has had permanent legal power; or
• f. are in certain case on the basis of request from the minister or the appointed official.

Article 17

(1) If companies owning API have their API revoked because they commit the mistake as meant in Article 16 letters a and/or b, the companies and/or executives of companies having their signatures contained in API only can submit application for new API 3 (three) years as from the date of revocation of the said API.

(2) If companies owning API have their API revoked because they commit the mistake as meant in Article 16 letters c, d, e and/or f, the companies and/or executives of companies having their signatures contained in API only can submit application for new API 5 (five) years as from the date of revocation of the said API.

(3) The applications for API as meant in paragraphs (1) and (2) are obliged:

• a. to obey the provision as meant in Article 8 to this decree; and
• b. to return the original API already revoked.

Article 18

(1) The freezing, liquidation and revocation of API as meant in Articles 14, 15 and 16 are done by heads of provincial service where API is issued on behalf of the minister.

(2) Heads of provincial services are obliged to convey notification of freezing, liquidation and revocation of API as meant in Articles 14, 15 and 16 to the relevant companies with a copy made available to the director and heads of regency/city service where head offices of the companies are domiciled.

(3) Copy of the notification as meant in paragraph (2) is conveyed to the Director of Technical Customs, Directorate General of Customs and Excise for the purpose of customs administration in the import field.

CHAPTER VII
EXCEPTION

Article 19

Import of goods without API can be done after securing prior approval from the minister or the appointed official.

CHAPTER VIII
MISCELLANEOUS PROVISION

Article 20

(1) Models of completing form, BAP, API-U, rejection of API, freezing of API, liquidation of API, revocation of API, list of code no. of API of provincial service, form of change and specimen of numbering of provincial and regency/city codes are as contained in Attachments I, II, III, IV, V, VI, VII, VIII, IX, X-a and/or X-b and XI to this decree.

(2) Models of API as contained in specimens in Attachments III and IV to this decree are 29 in length and 19 cm in width and printed by the Ministry of Industry and Trade on thick paper with the logo of the Ministry of Industry and Trade.

(3) API-U is light blue and API-P is light green.

(4) Every API which is issued is numbered with 9 (nine) digits as meant in specimen in Attachment XI to this decree, consisting of:

• a. 2 (two) front digits for the stipulated provincial code no. as contained in Attachment XI to this decree;
• b. 2 (two) next digits for code no. of regencies/cities in accordance with the code no. of regencies/cities in the relevant provinces;
• c. 5 (five) other digits for serial no. of the issued API.

(5) Any change in code no. of provinces as meant in Attachment IX to this decree because of establishment of new provinces are further stipulated by the Director General of Foreign Trade, Ministry of Industry and Trade.

CHAPTER IX
CONCLUSION

Article 21

API issued before the stipulation of this decree remains effective until expiring and abides by the provisions in this decree.

Article 22

This decree comes into force as from the date of stipulation.

For public cognizance, this decree shall be published by placing it in State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
On January 27,2003
THE MINISTER OF INDUSTRY AND TRADE,
sgd.
RINI M SUMARNO SUWANDI