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Clash of trade, agriculture rules jeopardizes horticultural imports
The Indonesian Ombudsman estimated importers had to suffer a total loss of around Rp 3.2 billion (US$214,240), consisting of Rp 2.43 billion in utility costs and Rp 777 million in demurrage fees.
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A farmer tends to hydroponic crops in Semarang, Central Java.
(Antara/Aditya Pradana Putra)
T
he Indonesian Ombudsman has reported import maladministration between the Agriculture Ministry and Trade Ministry resulting in 1.4 million kilograms of imported horticultural goods being put in detention at three different ports.
Because of such a situation, the Ombudsman estimated importers had to suffer a total loss of around Rp 3.2 billion (US$214,240), consisting of Rp 2.43 billion in utility costs and Rp 777 million in demurrage costs, while stating that the numbers would continue to grow.
“We hope a solution, one that would not put the people in jeopardy, is created. We also hope for further regulation coordination between the respective ministries,” Ombudsman member Yeka Hendra Fatika said in a release on Sept. 15.
The cause of the problem was that importers had obtained an Import Approval Letter (SPI) from the Trade Ministry, but after the imported goods arrived at Tanjung Belawan, Tanjung Perak and Tanjung Priok ports, they were held by the local authorities.
The authorities argued that the importers had not obtained another document, namely the Horticultural Product Import Recommendation (RPIH), as required in Agriculture Ministerial Regulation No.5/2022.
However, the Ombudsman countered that, in accordance with Trade Ministerial Regulation No. 5/2022 based on the Job Creation Law, the Trade Ministry had removed the RPIH as a requirement for the SPI issuance.
The Job Creation Law has revised around 70 different laws as a means to break bureaucratic red tape and boost foreign and domestic direct investments.
