How to import oil to Indonesia? Due to the depletion of domestic oil reserves, imports are inevitable. Based on the data from BPS, there was a 1.73% increase in oil imports to 9.14 million tonnes in 2020 from 8.98 million tonnes in 2019. Meanwhile, the total value of crude oil imports in 2021 is expected to reach US $2.297 billion.
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Indonesia is one of the countries with the largest oil demand in the world. However, to meet domestic demand, oil reserves are not enough. To overcome this, the Indonesian government decided to import oil from other countries such as Saudi Arabia, Nigeria, Australia and Algeria.
Types of oil you can import to Indonesia
There types of oil that can be imported into Indonesia, including:
1. HS Code 2709
Petroleum oils with its derivation from minerals that contain raw bitumen
2. HS Code 2710
petroleum oils deriving from minerals that contains non-raw bitumen
Indonesian Oil Import Requirements
Before importing oil to Indonesia, it is better to consider the following points:
1. NPWP (Taxpayer Registration Number)
This is an identification number that you regularly use to meet your tax payment obligation. To obtain an NPWP, you or your business must have been in Indonesia for minimum 183 days. You can apply for an NPWP at the tax office.
2. NIB (Business Registration Number).
Then, you need NIB as the official sign of your business in Indonesia. With the NIB, all your oil import affairs will be smooth. You can register the NIB on the OSS website.
But what if you don’t have a company in Indonesia yet?. Then you can use an Importer of Record service like Kickrate.
3. Business Entities Report
This report is an additional report that says you already have a petroleum company in Indonesia.
4. Recommendation Letter from various Indonesian agencies.
In addition to those already mentioned, you will need letters of recommendation from several government agencies in Indonesia. These include the ESDM Ministry and the Ministry of Industry. This letter of recommendation is optional.
Process of Importing Oil to Indonesia
How does the importing oil to Indonesia take place?.
1. Prepare All The Documents Needed
First, make sure you have prepared the necessary documents mentioned above. Such as licensing documents, tax, bill of lading, etc.
2. Check Out The Trade Regulation in Your Country
Before that, you need to check the oil trade regulations in your country so that there are no mistakes when importing to Indonesia.
3. Decide Which Payment Method You Want to Choose
After that, decide which payment method you want to use with your client in Indonesia, Shipping, etc. Usually, Importers most likely will choose using Letter of Credit payment method.
4. Determine The Shipping Method
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5. Do The Custom Clearence
When the oils has arrived to the Indonesian Port, you need to file a customs clearance at customs. Make sure you have prepared all the documents needed.
Last but not least, it is clear that managing the importation of oils into Indonesia takes a lot of time. It can even take up to months. However, you can shorten the process by using the services of an Importer of Record such as Kickrate. Everything is handled with professional hands.
