The increasing demand for exports, particularly in the mining sector, has led many Indonesian entrepreneurs to compete in exporting the country’s natural resources abroad. March 2022 marked a new chapter for export-import business players, as the government officially enacted Ministry of Trade Regulation (Permendag) No. 12 of 2022 concerning the Third Amendment to Permendag No. 19 of 2021 on Export Policies and Regulations. This regulation represents the third revision, following previous amendments through Permendag No. 2 of 2022 and Permendag No. 8 of 2022.
To carry out the export of certain goods, individuals, institutions, or business entities—both legal and non-legal entities—are required to obtain a business license in the export sector. This export license includes a Registered Exporter (ET) and Export Approval (PE). To obtain either a Registered Exporter status or Export Approval, exporters must submit an electronic application through the Indonesia National Single Window (INSW) system.
There are some differences between a Registered Exporter (ET) and Export Approval (PE). To make this easier to understand, the following visual illustrates the key distinctions between ET and PE.
PARAMETER
REGISTERED EXPORTER
EXPORT APPROVAL
Definition
A company or individual that has received official recognition from the Minister of Industry and Trade to export certain goods in accordance with applicable regulations.
(Decree of the Minister of Industry and Trade No. 182/MPP/Kep/4/1998 concerning General Provisions in the Field of Export)
An approval used as a licensing requirement in the field of export..
(Presidential Regulation No. 32 of 2022 concerning the Commodity Balance)
Required Documents & Information
Business Identification Number (NIB)
Exporter Identity, including company legal documents.
Business Identification Number (NIB) and Exporter Identity
HS Code/Customs Tariff, type/description of goods
Quantity and unit of goods (commodity balance)
Port of loading
Effective date and expiration date
Example Business Sectors
Mining (Coal); Crude Oil and Natural Gas
Natural Plants; Wildlife; Fish; Urea Fertilizer
Is it possible for a business to be required to have both ET and PE?
Referring to Article 3, paragraph (4) of Ministry of Trade Regulation No. 12 of 2022, it is explained that both ET and PE are business licenses in the export sector. It is possible that an exporter must have both ET and PE simultaneously. This can be seen in the appendix of Ministry of Trade Regulation No. 8 of 2022, which lists several business sectors that require exporters to have both ET and PE. For example, in the fuel sector, such as alcohol or petroleum, both licenses are required.
Then, must all mining business sectors have ET?
For the scope of minerals and coal, the required licenses are adjusted according to the group of minerals and coal and the purpose of the export. The classification of minerals and coal is regulated in Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities. According to this regulation, there are five groups of minerals and coal: radioactive minerals, metallic minerals, non-metallic minerals, rocks, and coal. As mentioned above, the licensing requirements in Ministry of Trade Regulation No. 12 of 2022 are aligned with the classification of minerals and coal and adjusted based on the purpose of the export.
For example, the licensing requirement for radioactive minerals requires Export Approval. This is different from non-metallic minerals and rock groups, which, in addition to needing Export Approval, may also require a Survey Report in some cases.
On the other hand, the licensing requirement is also adjusted based on the intended purpose of the export. For instance, andesite rocks, which are products of mining processing and/or refining, require a Survey Report. This is different from andesite rocks used for research and development, re-export purposes, or industrial product exports, which only require Export Approval. Similarly, silica and quartz used for research and development, re-export, or industrial product export purposes only require Export Approval, while silica and quartz that are mining products from processing and/or refining require both a Survey Report and Export Approval.
In principle, every business actor who intends to engage in export activities must understand which licenses are required for their business activities.
If readers have difficulty determining whether their business requires ET or PE, they can contact us via our Client Relations at info@anclegalbusiness.com. We would be happy to assist and provide licensing consultations for your company, whether you are involved in export or import.
*Disclaimer: This article is for general information only and does not constitute legal advice. We accept no liability for any consequences arising from its use. Unauthorized use or reproduction is prohibited and may result in legal action.
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Source:
Government Regulation No. 96 of 2021;
Minister of Trade Regulation (Permendag) No. 12 of 2022 concerning the Third Amendment to Minister of Trade Regulation No. 19 of 2021 on Export Policies and Regulations;
Minister of Trade Regulation No. 19 of 2021 concerning Export Policies and Regulations
Authors :
1. Sarah Caroline Arissanty
2. M. Afif Zia Ul-Haq
