On July 13, 2021, the “Regulation of the Minister of Industry No. 13 of 2021 on the Recommendation of the Importation of Hazardous substances” was enacted in Indonesia and came into effect on the same day. This regulation requires the importers of hazardous substances (B2) to obtain a recommendation letter issued by the Ministry of Industry. In order to obtain a recommendation, the importer must first undergo an verification by a third-party organization, and then apply to the Ministry of Industry for an import recommendation through a dedicated system. If there are no problems with the application, a letter of recommendation will be issued for the import of B2.
The original text of this regulation can be downloaded from the following link:
Definition of Hazardous substance (B2)
The definition of “hazardous substance (B2: bahan berbahaya)” is provided in this regulation as follows. However, the specific list of B2 is not specified in this regulation.
Hazardous substances (B2) are components, chemicals, and biological materials in the form of single substances or mixtures that are toxic, carcinogenic, teratogenic, mutagenic, corrosive, and irritant that may pose a risk to health and the environment, directly or indirectly.
Definition of Importer
There are two types of importers in this regulation: “manufacturing and importing companies” (API-P companies) and “general importers” (API-U companies). API-P companies are prohibited from selling or transferring B2 imported by them to anyone. API-U companies will be responsible for the distribution of imported B2, and if the company they sell to does not comply with the regulations, they will be prohibited from distributing B2 to that company. The recommendation of API-U companies will be granted to only state-owned enterprises (BUMN: Badan Usaha Milik Negara).
Procedures for obtaining B2 import recommendation
In the case of API-P companies, the necessary documents for verification are as follows:
- Company Registration Number (NIB)
- Industrial business license or expansion business license issued by the regulatory authority, or other business license within the scope of non-pharmaceutical industrial business sector
- Import plan
- B2 inventory list owned by the company
- List of types and quantities of major equipment used and production process flow
- List of workers
- Safety data sheets (SDS) for B2
- Production capacity and types of products to be produced
- Production performance reports for the last three years
- B2 utilization report for the last 3 years
- Production plan and B2 requirements for one year of production
After the verification has been conducted by the third-party organization, the company will apply for the issuance of a recommendation through the “State Industrial Information System (SIINas)” (https://siinas.kemenperin.go.id/) administered by the Ministry of Industry. At that time, the report on the verification results must also be attached. In the case of API-P companies, the following items are included in the recommendation letter:
- Identification information of the company, including the name, the address, the business field, the production type and capacity, and the business license of the company
- The type, CAS number, and HS tariff number/item of the B2 to be imported
- Intended use of B2
- Recommended import quantity
- Country of origin, country of loading, and port of destination
- Period of validity of the recommendation
Periodic Reporting on B2 Imports
Companies that have obtained a letter of recommendation must submit an import result report to the Director General in charge at least once a month after the import approval has been issued. The submission of this report is also carried out by the SIINas.