The Trade Ministry has defended ministerial regulation No. 8/2024 as a measure to speed up import processing and prevent the kind of build-up of freight containers observed a few weeks ago at Indonesian seaports.
he Trade Ministry has defended Trade Ministerial Regulation No. 8/2024 as a measure to speed up import processing and prevent the kind of build-up of freight containers observed a few weeks ago at Indonesian seaports.
The statement comes in response to criticism from the Industry Ministry, which blamed the Trade Ministry’s relaxed import rules for causing a flood of foreign products entering the domestic market to the detriment of local businesses.
“Our job in the Trade Ministry is to facilitate trade, including exports and imports. We don’t want to get in the way and become an obstacle […]. We need to make [the process] easier, not more difficult,” Bara Krishna Hasibuan, the Trade Ministry’s expert staff member for international agreements, told The Jakarta Post on Wednesday.
Bara explained that the revision of Trade Ministerial Regulation No. 36/2023 into Trade Ministerial Regulation No. 8/2024, which prompted the Industry Ministry’s criticism, was necessary after thousands of containers were stuck at the ports of Tanjung Priok in Jakarta and Tanjung Perak in Surabaya, East Java, in late May. As a result, President Joko “Jokowi” Widodo decided in a limited cabinet meeting to change the rule.
“As we received complaints from international [companies], including our major trading partners, we needed to respond quickly. The President [himself] ordered the change,” Bara stated.
According to him, the main reason for the backlog was the delayed issuance of technical approvals (Pertek) from the Industry Ministry, which were required for some commodities under the previous regulation.
“Indonesia currently implements preborder checking, so goods can only be cleared if all requirements have been met. Without the Pertek approvals, the Customs and Excise Office could not release them,” explained Bara.
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