Iron and steel are among the top three non-oil and gas commodities imported into Indonesia.
The volume of iron and steel imports ranks third, below mechanical equipment and electrical machinery/equipment.
In 2021, the volume of iron and steel imports increased by 14.81% compared to 2020, reaching 13.04 million tons (BPS, 2021).
Iron and steel imports remain relatively high and have even shown an increasing trend each year.
This is despite iron and steel being classified as commodities subject to LARTAS (Prohibitions and Restrictions).
The reason is that iron and steel are needed to support Indonesia’s manufacturing industry and infrastructure development.
The growth of manufacturing and construction activities naturally increases the demand for iron and steel.
At the same time, the domestic iron and steel industry has not yet been able to fully meet Indonesia’s demand.
Therefore, it is not surprising that iron and steel imports continue to show an increasing trend.
As commodities subject to LARTAS, what are the main requirements that must be fulfilled to import iron and steel into Indonesia?
This article explains the requirements that must be met when importing iron and steel into Indonesia.
Let’s take a closer look.
Iron and Steel as LARTAS Goods
Iron, steel, and their derivative products are goods subject to import restrictions or LARTAS.
One of the purposes of these restrictions is to maintain the growth of the national iron and steel industry.
Allowing unrestricted imports of iron and steel could potentially threaten the domestic industry.
This is because production technology for iron and steel in other countries is often more advanced, which can improve production efficiency and result in lower iron and steel prices.
These import restrictions are therefore implemented through several licensing documents that are required when importing iron and steel.
In the HS Code (Harmonized System) classification, iron and steel are included under Chapter 72.
Based on Minister of Finance Decree No. 23/KM.4/2022, there are at least 298 HS Codes for iron, steel, and derivative products that are subject to LARTAS requirements.
Under this regulation, the Ministry of Finance requires Import Approval (PI) and Surveyor Report (LS) documents for the importation of iron and steel commodities and their derivative products.
Main Requirements for Importing Iron and Steel
The following are the main requirements for importing iron and steel commodities into Indonesia.
1. Technical Consideration Document
A Technical Consideration (Pertimbangan Teknis) is a document issued by the Ministry of Industry of the Republic of Indonesia.
This document is not specifically mentioned in the Ministry of Finance regulation governing iron and steel imports.
However, it is required as one of the supporting documents for obtaining an Import Approval from the Ministry of Trade.
Importers can apply for a Technical Consideration through SIINas (National Industrial Information System).
Importers may prepare company legal documents such as:
- Business Identification Number (NIB)
- Taxpayer Identification Number (NPWP)
- Industrial Business License (IUI)
- Similar business licenses
- Other documents requested through SIINas
More information regarding the processing of Technical Consideration documents for iron and steel can be found here.
2. Import Approval Document
The Import Approval (Persetujuan Impor/PI) document can be obtained from the Ministry of Trade.
The PI document serves as a permit from the Ministry of Trade to import iron and steel.
Import Approval for iron and steel is regulated under Minister of Trade Regulation No. 110 of 2018 concerning Import Provisions for Iron and Steel, Alloy Steel, and Their Derivative Products, as amended by Minister of Trade Regulation No. 3 of 2020.
This document will later be required during customs clearance at the port.
If the importer is unable to provide this document during an inspection by the Directorate General of Customs and Excise (DJBC), the imported iron and steel cannot be released from the port.
To obtain the PI document, importers can register through the INATRADE portal of the Ministry of Trade of the Republic of Indonesia.
When submitting a PI application through INATRADE, importers will be required to upload the Technical Consideration document from the Ministry of Industry.
3. Surveyor Report Document
The next requirement is the Surveyor Report (Laporan Surveyor/LS).
A Surveyor Report is a document containing the results of technical verification of imported goods.
This document is issued by an Independent Surveyor Institution (LSI).
The issuance of Surveyor Reports for iron and steel imports is regulated under Minister of Trade Regulation No. 110 of 2018 concerning Import Provisions for Iron and Steel, Alloy Steel, and Their Derivative Products, as amended by Minister of Trade Regulation No. 3 of 2020.
Importers can apply to an LSI to conduct technical verification of the iron and steel products that will be imported.
The technical verification is carried out in the country of origin before the goods are shipped to Indonesia.
Based on the verification results, the LSI will issue a Certificate of Inspection or Surveyor Report.
In practice, importers can register their company in the LSI system and submit an application for technical verification.
More information about the Surveyor Report process can be found here.
4. Customs Clearance
The final requirement is customs clearance.
Customs clearance is a mandatory procedure when importing or exporting goods, whether the goods are subject to LARTAS requirements or not.
At this stage, the imported goods will be inspected and import duties and taxes on the iron and steel products will be paid.
For iron and steel commodities that are subject to LARTAS requirements, importers are required to provide:
- Import Approval
- Surveyor Report
If the importer cannot provide these documents, they may be given a maximum period of 30 days to complete the required documentation.
If the importer is still unable to provide the required documents by the specified deadline, the iron and steel products may be re-exported or partially released.
For this stage, importers can register through the Indonesia National Single Window (INSW) portal.
If importers prefer not to handle the process themselves, they may use the services of a Customs Brokerage Company (PPJK) or a Customs Clearance service provider.
More information about the customs clearance process can be found here.
Processing Iron and Steel Import Requirement Documents with PT. Alpha Romeo Teknologi
Processing the documents required for iron and steel imports can be a long and complicated process.
Companies or importers that are unfamiliar with these procedures may experience difficulties and face various risks.
A lack of practical understanding of the procedures, limited knowledge of the required technical documents, difficulty identifying which products are classified as LARTAS and which are not, and the number of parties involved can all create risks during the iron and steel import process.
One of the most likely risks is schedule delays.
PT. Alpha Romeo Teknologi can assist companies and importers in processing:
- Technical Consideration
- Import Approval
- Surveyor Report
- Customs clearance services for iron and steel imports
You can use our services for one requirement or for all of the required import documentation.
Processing import requirements with PT. Alpha Romeo Teknologi can help reduce potential risks during the import process.
With our assistance, your iron and steel import process can become easier, faster, and safer, allowing you to focus on developing your business.
Interested in partnering with us or discussing your requirements further?