A Look at Indonesian Trade Regulations on Importer Identification Numbers


By Ira A. Eddymurthy and Christina N. Soela

Indonesia’s Ministry of Trade (“MOT”) recently issued new regulations on Importer Identification Numbers.

Special Importer Identification Number

The MOT has revoked the requirement for importers to obtain a Special Importer Identification Number (“NPIK”) for the import of certain products such as textiles, shoes and electronics. The NPIK requirement had been stipulated in Minister of Industry and Trade Decree No. 141/MPP/Kep/3/2002 regarding NPIK, as amended by MOT Decree No. 07/M-DAG/PER/3/2008 and Decision of Director General of Foreign Trade No. 05/DJPLN/KP/III/2002 regarding Certain Types of Imported Goods for which an NPIK is Mandatory.

The revocation of this requirement for certain products is found in MOT Regulation No. 50/M-DAG/PER/7/2015 (“MOT Reg 50/2015″).

MOT Reg 50/2015 revokes the aforementioned regulations related to the NPIK and also declares that NPIKs issued under these previous regulations are null and void. The NPIK is deemed as no longer relevant as a license for import restrictions.

Importer Identification Number

The provisions on Importer Identification Number (“API”) are now regulated under MOT Regulation No. 70/M-DAG/PER/9/2015 (“MOT Reg 70/2015″), which became effective on January 1, 2016. MOT Reg 70/2015 revokes MOT Regulation No. 27/M-DAG/PER/5/2012 regarding the Provisions on Importer Identification Number, as lastly amended by MOT Regulation No. 84/M-DAG/PER/12/2012 (together, “MOT Reg 27/2012″).

Just like MOT Reg 27/2012, MOT Reg 70/2015 recognizes two types of API, namely: (i) General Importer Identification Number (“API-U”), which is granted to companies that import certain goods for trading purposes; and (ii) Producer Importer Identification Number (“API-P”), which is granted to companies that import goods for their own use as capital goods, raw materials, supporting materials and/or materials to support their production process. One importer may have only one type of API, either an API-U or an API-P, which is valid for import activities within Indonesian territory. Read more »

SSEK Receives 11 Nominations for ALB Indonesia Law Awards 2016

ALB Indonesia Awards

SSEK Legal Consultants has received 11 nominations for the Asian Legal Business 2016 Indonesia Law Awards, underlining the depth and breadth of SSEK’s practice.

SSEK is nominated for:

  • M&A Deal of the Year
  • Banking and Financial Services Law Firm of the Year
  • Deal Firm of the Year
  • Dispute Resolution Law Firm of the Year
  • Labor and Employment Law Firm of the Year
  • Maritime Law Firm of the Year
  • Projects, Energy and Infrastructure Law Firm of the Year
  • Real Estate Law Firm of the Year
  • Restructuring and Insolvency Law Firm of the Year.

Ira A. Eddymurthy, a founding partner of SSEK, is nominated for Woman Lawyer of the Year, and SSEK partner Fahrul S. Yusuf is up for Young Lawyer of the Year. Read more »

Legal Alert September 2016

Legal Alert (for blog post)

Please find the SSEK Legal Alert for September 2016. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia. Read more »

Michael Carl of SSEK a Panelist at INSOL Seminar on Indonesian Bankruptcy Law


Michael S. Carl, an international legal advisor at SSEK Indonesian Legal Consultants, was a panelist at a recent one-day seminar in Jakarta organized by INSOL International. The seminar covered developments in the Indonesian Bankruptcy Law and key domestic issues that affect foreign creditors in Indonesia.

Michael was invited to sit on a panel on trustee and bondholder claims in Indonesian Suspension of Debt Payment Proceedings (PKPU), which have been a part of Indonesia’s Bankruptcy Law since 2004 and provide creditors and debtors an avenue to avoid liquidation. The panel discussed strategies and approaches trustees and bondholders may take and obstacles they may face during PKPU proceedings.

Michael leads SSEK’s bankruptcy and debt restructuring practice. He joined SSEK in 2004 and has more than 20 years of experience practicing law in Southeast Asia, principally in Indonesia. Michael was previously with the international law firm Baker & McKenzie in its Singapore and Bangkok offices, where he represented companies in US debt and equity offerings and debt restructurings. Michael is recognized by Chambers & Partners as a leading lawyer for Indonesian banking and finance, corporate/M&A, projects and energy, and real estate, and by IFLR1000 for banking, project finance, and restructuring and insolvency. Read more »

Free Employment Law Alliance Webinar on Optimizing Employee Performance


The Employment Law Alliance is offering a free 90-minute webinar on Tuesday, October 11. The webinar, “Talking About My Generation … Optimizing Employee Performance in a Diverse World, being presented in cooperation with CCA Inc., an HR consulting firm that provides performance improvement and risk mitigation services for ELA firms and their clients.

Webinar Description

Today’s workforce is highly diverse – and that means multi-generational as well as multi-cultural. Currently, four generations are working side by side within most organizations.

The dynamics between generations can be very complex. Understanding those dynamics can be a key element in optimizing performance – keeping people engaged and empowered, the workplace inclusive and respectful, and collaboration/teamwork and performance high.

This webinar will provide employers with practical information and best practices on the following:

  • Defining and increasing understanding of generational differences
  • Identifying sources of generational frictions
  • Discussing generational triggers in the current environment
  • Exploring strategies for:
    • Defusing generational tension
    • Leveraging the strengths of each generation
    • Maintaining parity between generations Read more »

SSEK Hosts Seminar on Land and Property Sector in Indonesia

Real Estate & Property

SSEK Legal Consultants recently hosted a seminar on Indonesia’s land and property sector. Denny Rahmansyah, a partner in SSEK’s land and property practice, and Michael D. Twomey, the supervising foreign advisor for the practice, were the featured speakers.

Denny covered the legal framework for Indonesia’s land and property sector, discussing land titles in Indonesia, foreign ownership of land, land acquisition, land-related taxes and recent developments in the sector. Michael discussed various issues and concerns related to land due diligence.

Also speaking at the event was John Lauwrenz, a partner in Deloitte Tax Solutions, who gave a presentation on tax aspects of the Indonesian land and property sector. Read more »

SSEK Advisor Michael Carl Discusses FDI in Indonesia at LAWASIA Conference


Michael S. Carl, an international legal advisor at SSEK Indonesian Consultants, was a featured speaker at the recent LAWASIA Conference in Colombo, Sri Lanka.

Michael discussed foreign direct investment in Indonesia and the effects and opportunities of the Trans-Pacific Partnership (TPP) and China’s One Belt, One Road initiative.

Michael joined SSEK in 2004 and has nearly 20 years of experience practicing law in Southeast Asia. Before joining SSEK, he was associated with the international law firm Baker & McKenzie in its Singapore and Bangkok offices, where he represented Indonesian and Thai concerns in US debt and equity offerings and debt restructurings. Read more »

New Incentives for the Development of Solar Photovoltaic Plants in Indonesia

Solar Panels

By Syahdan Z. Aziz and Farah Nabila

Indonesia has set an ambitious national energy target of 125 GW of installed capacity at power plants by 2025. As of 2016, installed capacity has not reached even half the targeted number. In an attempt to support the development of power plants in Indonesia, the Government of Indonesia, through the Ministry of Energy and Mineral Resources, has introduced a new regulation that is intended to promote the development of solar power plants. This new regulation is Minister of Energy and Mineral Resources Regulation No. 19 of 2016 regarding Power Purchase from Solar Photovoltaic Plants by PT PLN (Persero) (“PLN”) (hereinafter referred to as “MEMR Reg No. 19/2016″).

Previous Regulation on Solar Power Plants

MEMR No. 19/2016 was enacted to replace and perfect the initial policy on solar plants, which was introduced by Minister of Energy and Mineral Resources Regulation No. 17 of 2013 regarding Power Purchase by PLN from Solar Photovoltaic Plants (“MEMR Reg No. 17/2013″). MEMR Reg No. 17/2013 introduced a solar power tender program in Indonesia and obliged PLN, the Indonesian state-owned electricity company, to purchase electricity generated by solar photovoltaic projects on the basis of a Power Purchase Agreement (“PPA”). However, in 2015, the Supreme Court annulled MEMR Reg No. 17/2013 on the grounds that the regulation did not require the use of local content by foreign investors developing solar photovoltaic plants. Read more »

Legal Alert August 2016

Legal Alert (for blog post)

Please find the SSEK Legal Alert for August 2016. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia. Read more »

Recent Legal Developments in the Indonesian Real Estate Sector

Real Estate & Property

By Dyah Soewito and Denny Rahmansyah

When discussing Indonesia’s real estate sector, two recent legal developments are particularly interesting. First, Indonesian President Joko Widodo recently issued Presidential Instruction No. 3 of 2016 regarding Simplification of Licensing in Housing Construction (“Presidential Instruction 3/2016″). This presidential instruction calls for ministers and heads of regional governments to simplify the policies, requirements and process to obtain the licenses required for the construction of housing. The issuance of Presidential Instruction 3/2016 followed the announcement of the government’s “one million housing” program, which, as the name suggests, is aimed at building a million houses for lower-income families.

It will take time to evaluate the effect of Presidential Instruction 3/2016, but in the months immediately following its issuance developers reported the same difficulties and challenges in obtaining the necessary licenses, in particular obtaining licenses from regional government authorities, which due to regional autonomy, have broad authority and discretion in the issuance of licenses for activities within their regions, including for real estate development. Read more »