Indonesia Implements New Policy on Import Control

The Indonesian government have launched the 15^th Economic Policy Package on last June 2017 aimed at development and competitiveness improvement on national logistics business’. This policy package was released in response to the continual rising of national logistic costs.

This economic policy package addressed four main aspects:

1. Border Restriction and Prohibition Reduction
   The on-border control of restriction and prohibition on imported goods is reduced from 48.3% to 20.8% of total HS codes and shifted to post-border control, and simplification requirements for export.

2. License simplification of restriction and prohibition.
   Multiple restriction and prohibition regulations applies to one same commodity will be simplified to one single license issued only by the leading sector ministry or institution.

3. Adjustment of restriction and prohibition regulations.
   16 out of 23 restriction and prohibition regulations will be revised to align with the economic policy package.

4. Special Trade policy for SME
   Supporting SMEs in terms of acquiring imported raw materials in relatively small quantities with affordable price; also, in terms of the export realization by SMEs.

Shifting of Check Point

Control over fulfilment of restriction and prohibition requirements on particular imported goods has shifted from on-border to post-border. It means that the controls are performed after the imported goods released out from the Customs area (Port) and no longer by customs authority, rather, by 18 ministerial and institutions issuing the requirements.

Up until now, there has been 21 new restriction and prohibition regulations issued to revise or replace the previous ones reducing the number of commodity HS Codes subject to on-border checks from 5.299 to only 2.256 HS Codes commodities.

The implementation of this post-border control is regulated with the Trade Minister Decree (Permendag) No: 28 year 2018 which has been in force since February 1^st, 2018.

Category of goods that are included in the post-border check are: lubricants, pearl, glass sheets, cooling based system products, capital goods, raw diamond, animal and animal products, cement clinker and cement, horticultural products, plastic materials and tyres.

Meanwhile, the type of goods that are subject to on-border checks include: particular species of shrimp, dangerous materials, ozone depleting substances, salt, explosive materials of PCMX, textile and textile articles, precursor, batik textile and articles, nitro cellulose, alcoholic drinks, rice, scrap & waste, sugar, cellular phone, handheld computer/tablet, used clothes and food materials and medicines.

This change in restriction and prohibition controls on imported goods is expected to reduce dwelling time and port storage costs for container, which will eventually reduce the national logistics cost.

Here are related regulations implementation of import post-border control in Indonesia, you may need to download:

1. Minister of Trade Decree No. 82 Year 2018 regarding implementation of import control outside of Customs Area (post-border).
2. Director General of Customs and Excise Letter No. S-145/BC/2018 dated 07^th February 2018 regarding notification of import control outside customs area implementation for particular restricted commodities.

We hope this short article would give you some knowledge and understanding on expor and import implemented in Indonesia. If you need more information or advices on customs or international trade compliance, especially in relation to Indonesia, please send your query through this E-Consulting link or simply email us at: [email protected]

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