CEO Morning Brief

Indonesia Amends Import Rules After Business Group Complaints

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Publish date: Thu, 18 Apr 2024, 11:15 AM
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TheEdge CEO Morning Brief

JAKARTA (April 17): Indonesia is revising a regulation designed to control imports of more than 3,000 products, amid concerns from business groups that the rule could disrupt domestic supply chains and exports, the country's trade minister said on Wednesday.

Southeast Asia's biggest economy issued a regulation late last year to tighten monitoring for many imported goods, from food ingredients to electronic equipment to chemicals, due to concern about an influx.

Importers are required to obtain import permits for various goods, including footwear, textiles and washing machines, and a technical recommendation from other government institutions is needed to secure such a permit.

"Business players, associations, and stakeholders have conveyed that they were having difficulties in obtaining technical documents from related institutions," Trade Minister Zulkifli Hasan said in a statement.

In a separate statement, Indonesia's Coordinating Ministry of Economic Affairs said the government is also suspending the requirement for the technical documents to obtain permits. The ministry did not elaborate the timeline for the suspension.

The coordinating ministry said the Trade Ministry will allow a transition period for the new regulation once the revision has been issued.

Business groups have said the new rules, which took effect on March 10, have restricted their access to some raw materials.

Following complaints and warnings of shortages, the trade ministry last month eased restrictions for aircraft spare parts and raw materials for the plastics industry. But business groups demanded further relaxation.

The Indonesian Chamber of Commerce and Industry said inappropriately targeted restrictions could disrupt operations in export-oriented industries, including automotive, mineral smelting and electronic manufacturing, as well as the food and beverage sector.

Source: TheEdge - 18 Apr 2024

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