Import Licenses for Doing Business in Indonesia

For businesses to import goods into Indonesian custom areas, it requires an import identification number known as API. There are two types of API:

• A General Import License or API-U may be used to import finished products or to trade goods with a third party. Licenses are issued by the Head of the Provincial Trade Service Office of where the company is based and take around 2 months to obtain. The API-U is valid for 5 years and then subject to renewal.
• A Producer Import License or API-P that may be used to import raw materials, unfinished products and goods for the production process for the company’s use only. Licenses are issued by BKPM. (Please see Useful Documents - Application for Producer Importer ID Number)

Licenses are limited to a particular industry area and do not permit importation of goods not related to the sector of business.

Under regulations issued by the Ministry of Trade No.45/2009 and amendment No.17/2010, companies may only have one type of import licenses as of 1st January 2011. In order to carry out imports of both finished products and raw materials, the business must be divided into separate entities to obtain a license. Transfers of goods between the business entities are still regarded as third party transaction and therefore subject to VAT.

Ministry of Trade Regulation No.39/2010 has allowed holders of API-P licenses to import certain types of finished product needed for the production process only. There has been wide scale pressure to revoke this as it is seen to only advantage foreign companies but as per mid 2011 it is still in effect.

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Riau Map

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Riau Province

Riau Province consists of land and water areas, with an area of ​​approximately 8,915,016 hectares (89 150 Km2), presence stretches from the slopes of the Bukit Barisan to the Strait of Malacca lies between 01 ° 05 '00 "south latitude - 02 ° 25' 00" latitude north or between 100 ° 00 '00 "- 105 ° 05' 00" East Longitude. Besides, according to Law No. 32 of 2004 there were areas of the oceans as far as 12 miles of shoreline.

On land there are 15 rivers, of which there are four major rivers that have significance as a means of transportation such as the Siak River (300 km) with a depth of 8 -12 m, Rokan River (400 km) with a depth of 6-8 m, Kampar River (400 Km ) with a depth of approximately 6 m and Indragiri River (500 km) with a depth of 6-8 m. To 4 river that divides the mainland from the high mountains of Bukit Barisan empties into the Strait of Malacca and the South China Sea marine tidally influenced.
The boundaries of Riau province when viewed his position with neighboring countries and other provinces are as follows:a. North side: the Straits of Malacca and North Sumatra Provinceb. South side: Jambi and West Sumatra Provincec. East: Province of Riau Islands and the Strait of Malaccad. West: West Sumatra and North Sumatra.
Riau province composed of 10 (ten) and District 2 (two) the City with a total area of ​​each:
01. Singing Kuantan, 520 216 ha02. Indragiri Hulu, 767 627 ha03. Indragiri Hilir, 1,379,837 ha04. Pelalawan, 1,240,414 ha05. Siak, 823 357 ha06. Kampar, 1.09282 million ha07. Rokan Hulu, 722 978 ha08. Bengkalis, 843 720 ha09. Rokan Hilir, 896 143 ha10. Kpulauan Meranti, 360 703 ha11. Dumai, 203 900 ha12. Pekanbaru, 63 301 ha
TopographyRiau Province has topography with slope 0-2 percent (flat) area of ​​1,157,006 hectares, the slope of the land 15-40 percent (steep) covering 737 966 hectares and the topography of the area that has a very steep slope (> 40 percent) covering 550 928 (including Riau Islands Province) acres with an average height of 10 meters above sea level. Riau Province in general topography is low-lying areas and slightly wavy with a height at which there are few cities in the provinces of Riau between 2-91 m above sea level. Bengkalis is the lowest city, is located 2 meters above sea level, while the Pasir Pengaraian City located 91 m above sea level. Most cities in Riau Province is under 10 meters above sea level, such as Rengat, Tembilahan, Siak, Bengkalis, Bagan Siapi-api and Dumai.
Most of the mainland Riau area consists of land that occur from the formation of alluvium (sediment), there are some places neogen interlude, for example along the Kampar River, Rivers and his son Indragiri my Chinese River in the southern district Indragiri Hulu. But in the border area along the Bukit Barisan permikarbon entirely made up of layers, and neogen peleogen padsolik meaning of land consisting of the parent sedimentary rocks.
Whole area could be said the old land to the north while the rest extends up to the coastal areas, the construction of soil formation alluvium (sediment) derived from age to age Recen Quarter, above all in the muddy area marshy areas along the the north coast. Riau Province there are four types of soil (based on research Zwieryeki, years 1919-1929), namely:

    Humus soil type Organosol Glei
    Soil types of Alluvium Red Yellow Padsolik
    Red Yellow Soil types of sedimentary rocks Padsolik
    Red Padsolik yellow soil types of sedimentary rocks and igneous rocks.
Soil types are mainly found in areas along the coast until the middle of the mainland in the form of a young land is mountainous, and even some parts of the ground muddy swampy.

ClimateRiau wet tropical regions with an average rainfall ranges between 1000-3000 mm per year are affected by the dry season and rainy season. The most frequent area of ​​rain each year is overwritten Pekanbaru 193 days, 178 days Indragiri Hulu regency, Pelalawan 147 days, 136 days Rokan Hulu, and Kampar district by the number of rainy days 110 days.
The highest amount of rainfall in 2009 occurred in Kampar regency with rainfall of 349.0 mm 3, followed by 3 Pekanbaru 214.4 mm, while the lowest rainfall occurred in the City Dumai of 635.0 mm. Further, according to records of the Meteorological Station Simpang Tiga, the average air temperature in the city of Pekanbaru in 2009 showed a maximum temperature of 28.0 Celsius to 36.0 Celsius and minimum temperature of 21.0 Celsius.

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