How do I choose between API-U and API-P?

Look at the final use of the goods: buy-and-sell into the channel takes API-U; a producer’s own raw materials, consumables and equipment take API-P. Companies that both trade and consume their own imports should declare shipment by shipment. The type and the use must match — a mismatch affects both the tax and the supervisory finding.

How big is the tax gap between holding an API and not?

On the common reading, PPh 22 is 2.5% with an API and 7.5% without; without an API and without a valid tax ID the uplift takes it to 15%. On a customs value of 100,000 the three states pay 2,500, 7,500 and 15,000. Actual figures follow the rules in force, and the difference is structural rather than a rounding.

Can PPh 22 paid at import be recovered later?

PPh 22 is a withholding, and where the conditions are met it can be considered for offset or settlement under the tax rules — provided the payment record sits under your own entity and the supporting documents are complete. Tax paid under someone else’s name essentially has no offset route.

What does it take to apply for an API?

The basic route: complete company formation and tax registration (NPWP), obtain the NIB through OSS, apply for API-U or API-P according to the nature of the business, and activate it at the customs end. The exact materials and procedural detail follow the current requirements of OSS and customs, and a local agent can handle the filing.

Does the registered business scope have to match the goods?

Yes. A registered scope that does not match the goods actually imported will be questioned at declaration or at the supervisory stage, and in serious cases the whole shipment’s handling is affected. Write the scope to match the real business, and widen the scope before widening the product range.

If we import under someone else’s name, whose tax rate applies?

The tax is computed on the qualification of the declaring entity — the name on the document — and the evidence belongs to that entity too. In other words, the burden you actually bear is set by the counterparty’s qualification, and neither the tax nor the evidence sits under your name, which limits what you can book and offset.

Do we have to update the API after a company change?

Yes. After a change of name, address or business scope, the API and the customs-end record must be updated together, otherwise the declaration shows old and new information side by side and is easily returned for correction. Confirm the system data status with your PPJK during the change.

Can a newly formed company apply for an API immediately?

Once entity and tax registration are complete the application can be started; there is no general rule requiring a minimum operating period. The pace of each step, however, determines how long the run-up from formation to first declaration takes. The full timeline is on the new importer’s first year page.

API-U vs API-P: Which Indonesian Import Licence, and the PPh 22 Link

Key figures (free to quote)

Item	Reference figure
PPN (VAT)	12% (base computed at 11/12; effective burden on non-luxury goods about 11%).
PPh 22 (with API)	2.5% (on the import value).
PPh 22 (without API)	7.5% (a further 100% uplift applies where no valid tax ID is held).
Inspection profile (empirical)	Yellow line about 10-20%, red line about 3-5% (not official; varies by year and category).
Jakarta city delivery	1-3 days after customs release.
Java island delivery	2-4 days.
Outer-island delivery	5-10 days (including the second leg).
Import duty (BM)	Commonly 0-15% (set by HS code; with FORM E under ACFTA, most goods can reach 0%).
De minimis threshold	Goods valued below USD 3 are exempt from duty (PPN still applies).

Reference values for standard cases (complete documents, no inspection, outside the red-line season). Actual figures follow current carrier and customs notices. Last reviewed 2026-09-27.

In short

API is Indonesia’s importer qualification number, in two types: API-U (general import, buy to resell) and API-P (producer import, for own raw materials and equipment). A mismatch between the type and the actual business creates problems on both the tax side and the supervisory side.
The API is directly tied to PPh 22, the import-stage income-tax withholding: holding an API attracts the lower band, not holding one attracts the higher band, and no valid tax ID adds a further uplift. This is not loose change — it is a structural difference in tax burden.
This page compares the two types and gives a reproducible PPh 22 example. Run your own annual import value through the rate gap and you have the hidden cost of not holding an API.

1. API-U and API-P side by side

The choice logic. Look at the final use of the goods: what goes to market for sale takes API-U; what goes into your own production line takes API-P. A company that both trades and consumes its own imports should declare shipment by shipment rather than let one API cover every use.

Dimension	API-U (general import)	API-P (producer import)
Nature of business	Trading: buy and sell	Production: own raw materials, equipment and consumables
Typical holder	Traders, distributors, e-commerce sellers	Manufacturers with a plant or processing operation in Indonesia
Use of the goods	Entering the channel for sale	Used in own production, not directly resold
Supervisory focus	Fit between registered business scope and the goods	Genuineness of use; correspondence between equipment and materials
Cost of mixing them up	A mismatch affects the tax basis and the supervisory finding	The same, and the production use has to be provable

2. The direct link between the API and PPh 22

PPh 22 is income tax withheld at the import stage, computed on the customs value (including the duty element), and forms the third block of the import tax burden; the composition is set out on the import duties and taxes page.
The three-band logic: with an API, the lower band; without one, the higher band; without an API and without a valid tax ID, a further substantial uplift. The band figures are shown in the worked example below.
This is a structural difference, not a fee difference: for thin-margin goods the PPh 22 gap on a non-API import can swallow most of the gross margin, and it feeds straight into how competitive a quotation can be.
PPh 22 can, where the conditions are met, be considered for offset or settlement later in the tax process — but only if the payment record sits under your own entity. What is paid under someone else’s name does not travel with you.

3. A worked example: one shipment, three qualification states

The example shows two things. First, going from no API to holding one takes the PPh 22 on the same shipment from 7,500 down to 2,500 — a difference of 5,000 straight back into margin. Second, the uplift for no tax ID is the heaviest of all, which is why entity qualification is the first priority.

Qualification state	Rate	PPh 22 amount	Versus holding an API
With API + valid tax ID	2.5%	100,000 × 2.5% = 2,500	Baseline
Without API + valid tax ID	7.5%	100,000 × 7.5% = 7,500	5,000 more (three times)
Without API + no tax ID	7.5% × (1 + 100%) = 15%	100,000 × 15% = 15,000	12,500 more (six times)

Assumptions (illustrative values): a shipment whose customs value converts to 100,000 in the example currency; duty and VAT held constant so that only PPh 22 is compared. The rates are shown on the common reading — 2.5% with an API, 7.5% without, and a 100% uplift on the 7.5% where no tax ID is held. Actual rates and band conditions follow the rules in force at the time.

4. Applying for and maintaining the licence

Sequence: complete the entity and tax registration (NPWP) first, obtain the NIB through OSS, then apply for API-U or API-P according to the nature of the business and activate it at the customs end before it can be used to declare. The full first-year route is on the new importer’s first year page.
Fit: the registered business scope should match the goods actually imported; goods outside the registered scope will be questioned at declaration or at the supervisory stage.
Keep changes in step: after a change of company name, address or business scope, the API and the customs-end record must be updated together, or the declaration will show old and new information side by side.
Verify: once you hold a counterparty’s API number you can check its status through official channels — the method is on the importer verification page.

5. Running without an API: the transitional options and their price

Importing under a third party’s name solves the qualification problem for the moment, but PPh 22 follows their qualification, the evidence sits in their name, and the arrangement carries structural obstacles — see the undername page.
Declaring through a licensed PPJK (with the importer being your own entity) solves the operational-capability question; it does not replace the API itself. Whether you hold an API or not, the tax band does not move.
From a cost view: set the one-off effort of obtaining an API against the long-run rate gap, and for most companies importing continuously the gap covers the effort within a few months; the method is on the cost reduction page.
For the wider identity-number system — how NPWP, NITKU, NIB and API each fit — see the identity trio page.

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NPWP, NIB & API Explained Import Duties & Taxes Undername Import Risks A New Importer’s First Year Verifying an Importer Refund of Overpaid Duty Seven Ways to Cut Cost Indonesia Import Guide

This page summarizes field practice and publicly available Indonesian import rules for general business reference only—it is not legal, customs, or pricing advice. Customs provisions, tariff rates, and licensing requirements keep changing, so the rules in force at the time and the official processing result always prevail. Wuhan Freedom International Logistics Co., Ltd. · Licensed PPJK in Indonesia · Jakarta / Semarang / Wuhan.

API-U vs API-P: Which Import Licence, and Why It Moves Your Tax