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Press Releases | Batam Report Vol. 10

Export Procedure in Batam: Simple and Efficient

Batam is widely recognized as an export processing none, where it is exempted from all import/export duty. It has quickly developed as an industrial, trade, transhippment and tourism area due to the incentives it offers. With the activities in the industrial and trading sector. Batam now contributes 14% of Indonesia's national non oiI-and-gas export, a very significant contribution from a 415 sq-km island to the nation.

As an aura for free port, industries, acid trade, value of exported goods from Batam last year has reached US$ 5,77 billion, resulted from more than 530 foreign manufacturing plants and 9,700 domestic companies, including small and medium enterprises. Last year alone, Batam has attracted 60 additional new foreign projets, with a value of US$350 million.

This export achievement, mainly due to the the simple, fast and efficient export procedure offered, that the turn-around of products can be achieved within hours.

Registered companies in Batam enjoy simple and flexible import export processes, but they are also responsible to follow the standard regulations on documentation and customs. These include company registration and trading license.

Companies iced to complete essential documents to conduct business and trading activities, which Include investment Approval Letter (Surat Persetujuan Penanaman Modal), Company Registration (TDP, Tanda Daftar Perusahaan), and Tax Registration Code Number (NPWP, Nomor Pokok Wajib Perusahaan) for foreign companies, whereas Trading License (SIUP, Surat Ijin Usaha Perdagangan), TDP and NPWP are required for domestic companies.

Subsequently, for export purposes, companies should follow regulations set by the Batam Industrial Development Authority (BIDA) and obtain documentation through registered freight forwarding companies. At this stage, companies should obtain Notification of Export Goods (PER, Pemberitahuan Ekspor Barang), 13111 of Lading, Invoice, Packing List, Certificate of Origin (if requested by buyer or customer at the designated country) and other transportation documents. On the other hand, importing companies should submit a similar set of documents except instead of PEB, companies are required to obtain Export to Bonded Zone (EBZ) as a notification of import goods.

The simple procedure applies to the land, sea and air transportation of` goods. Many internationally reputable freight forwarders are also operating in Batam. In the mean time, BIDA is currently extending the main seaport, Batu Ampar, to be able to handle import/export activities faster and more efficiently.

The Batam Industrial Development Authority, together with the Municipality of Batam, the Batam Customs Office, and the Batam Office of the Central Bureau of Statistics continue to keep a close eye on the these activities to keep them as simple and efficient as possible, as the key to be more competitive in Asia Pacific.