Top 5 Imported Goods by Value: Which Ones Are Classified as LARTAS?
Indonesia is one of the countries actively involved in international trade activities, including trade in commodities classified as LARTAS.
These trading activities are intended to support and stimulate national economic growth.
But do you know which five types of goods have the highest import values in Indonesia?
In this article, we will explain the five types of goods with the highest import values in Indonesia.
We will also identify which products fall under the LARTAS (Prohibitions and Restrictions) category.
Let’s take a closer look.
5 Types of Goods with the Highest Import Values in Indonesia in 2021
The Statistics Indonesia (BPS) published its 2021 Foreign Trade Statistics – Import Report.
Based on the report, we selected five types of goods according to their HS Code Chapters that were frequently imported into Indonesia.
The ranking in this article is limited to import activities during 2021.
We will also explain which goods within each category were subject to LARTAS requirements.
The identification of goods subject to LARTAS is based on Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022 and the list of goods available through the Indonesia National Single Window (insw.go.id) portal.
The identification is based on the HS Code Chapter of each type of goods.
The following are the five types of goods with the highest import values in Indonesia.
1. Mineral Fuels, Oils, and Distillation Products
The category with the highest import value in Indonesia in 2021 was mineral fuels, oils, and their distillation products.
This category falls under HS Code Chapter 27.
In 2021, the import value of these products reached approximately:
USD 28.84 billion
This represented an increase of more than 80% compared with approximately USD 15.77 billion in 2020.
In addition to having the highest import value in 2021, this category also recorded the largest import volume among the five categories.
The total import volume of mineral fuels, oils, and their distillation products in 2021 reached approximately:
57.68 billion kg
The high level of imports is understandable because these commodities are essential to Indonesia.
Transportation, electricity generation, and various other activities still rely heavily on mineral fuels as their primary energy source.
Under Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022, there are 26 HS Codes for mineral fuels, oils, and distillation products that are subject to LARTAS requirements.
Examples include:
- Crude petroleum oil
- Fuel oil
- Diesel fuel
- Kerosene
- Propane
- Butane
- Other related products
2. Nuclear Reactors, Boilers, Mechanical Equipment, and Parts
The category with the second-highest import value in 2021 was nuclear reactors, boilers, mechanical equipment, and their parts.
However, mechanical equipment represented a significant portion of the imported goods within this category.
These products fall under HS Code Chapter 84.
The import value of this category in 2021 reached:
USD 25.84 billion
This increased from approximately:
USD 21.80 billion in 2020
The total import volume for this category reached approximately:
3.51 billion kg
For this product category, particularly mechanical equipment, we identified four HS Codes subject to LARTAS requirements under Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022.
These include:
- One HS Code for tablet computers
- Three HS Codes for cooling equipment
However, further examination through the insw.go.id portal shows that other HS Codes may also be subject to LARTAS requirements.
This particularly applies to mechanical equipment categorized as non-new or used capital goods.
3. Electrical Machinery and Equipment
The third-highest category by import value in 2021 was electrical machinery and equipment.
This product category falls under HS Code Chapter 85.
The high level of electrical machinery and equipment imports corresponds with continued technological development, where a large number of technologies depend on electrical machinery and equipment.
According to Statistics Indonesia data for 2021, electrical machinery and equipment ranked third in terms of import value.
The total import value reached:
USD 22.33 billion in 2021
This represented an increase of approximately USD 3.30 billion from the previous year, when the value was approximately:
USD 19.02 billion
The import volume in 2021 reached approximately:
1.24 billion kg
Referring to Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022, we identified at least 15 HS Codes within this category that were classified as LARTAS goods.
Examples of products subject to LARTAS include:
- Smartphones
- Mobile phones
- Handheld computers
- Tablet computers
- Used lithium batteries
4. Cast Iron, Iron, and Steel
The category with the fourth-highest import value was cast iron, iron, and steel.
These products fall under HS Code Chapter 72.
Iron and steel are commonly used as raw materials for the manufacturing industry.
They are important materials for industries such as:
- Automotive manufacturing
- Motorcycle manufacturing
- Construction
- Other manufacturing sectors
Therefore, it is not surprising that this category has a high import value.
The import value of iron and steel in 2021 reached:
USD 11.95 billion
This represented an increase of almost 50% compared with approximately:
USD 6.85 billion in the previous year
In terms of volume, iron and steel imports increased by approximately 1.7 billion kg, from around 11.35 billion kg in the previous year to approximately:
13.03 billion kg in 2021
This situation may have occurred as a result of the transition from the COVID-19 pandemic lockdown period to the new normal.
Demand for iron and steel remained relatively high, while supply was below the required level because iron and steel production had only recently resumed following the COVID-19 lockdown period.
Among the five categories discussed in this article, iron and steel had the largest number of HS Codes subject to LARTAS requirements.
There were at least:
298 HS Codes
for iron and steel products classified as LARTAS.
This is related to government efforts to protect the national iron and steel industry so that domestic producers can compete with imported iron and steel products.
Examples of iron and steel products subject to LARTAS requirements include:
- Iron or steel
- Alloy steel
- Iron or steel derivative products
- Non-B3 waste used as industrial raw materials
Almost all iron and steel products are subject to import LARTAS requirements.
5. Plastics and Articles Thereof
The final category is plastics and articles thereof.
These products fall under HS Code Chapter 39.
The import value of plastic products in 2021 reached:
USD 10.18 billion
This represented an increase of approximately USD 3.03 billion compared with the previous year, when the import value reached:
USD 7.15 billion
The total import volume of this product category in 2021 reached approximately:
5.02 billion kg
This represented an increase of approximately 700 million kg compared with 2020 (BPS, 2021).
Based on Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.3/2022, there are at least 15 HS Codes in this category that are subject to LARTAS requirements.
These 15 HS Codes include commodities such as:
- Nitrocellulose
- Non-B3 waste used as industrial raw materials
Import Services for LARTAS Goods with PT. Alpha Romeo Teknologi
Those are the five categories of imported goods with the highest import values in Indonesia in 2022.
Among these five categories, various products and commodities are subject to import restrictions.
In total, at least 418 HS Codes from these five categories are subject to LARTAS requirements.
LARTAS goods are subject to specific regulations during the import process.
Each type of LARTAS product may be subject to different requirements.
For example:
- Some products require an Import License or Import Approval from the Ministry of Trade
- Some products require a Technical Consideration from the Ministry of Industry before an Import Approval can be obtained
- Other products may not require a Technical Consideration
- Some products require a Surveyor Report
- Other products may not require a Surveyor Report
These different requirements can make the importation of LARTAS goods challenging.
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We can assist you in preparing the required import documents, including:
- Technical Consideration
- Import Licensing
- Surveyor Report
- Customs clearance services
With our assistance, the import process can become simpler and more efficient, allowing you to focus more on developing your business.
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