Indonesia: Government simplifies the regulations on goods prohibited for export and import

Will it bring a new dynamic?

In brief

"In the spirit" of simplifying Indonesian regulatory frameworks, the Minister of Trade (MOT) recently issued MOT Regulation No. 18 of 2021 on Goods Prohibited from Being Imported and Exported ("Regulation 18") to further implement Government Regulation No. 29 of 2021 on the Organization of the Trade Sector.

Before the issuance of Regulation 18, the list of goods prohibited for export and import was scattered amongst various regulations, including (i) MOT Regulation No. 12 of 2020 on Goods Prohibited for Import, (ii) MOT Regulation 45 of 2019 on Goods Prohibited for Export, and (iii) Decree of the Minister of Industry and Trade No. 520/MPP/Kep/8/2003 on the Prohibition on Imports of Hazardous and Toxic Waste. Regulation 18 revokes all of these regulations.


Contents

What's new?

Regulation 18 now prohibits the importation of 149 goods (previously only 116) and the exportation of 275 goods (previously only 39). The schedule of this alert lists the goods prohibited for export and import under Regulation 18.

Import

Regulation 18 introduces new categories of goods that are prohibited for import, namely, sugar, rice and hand tools. Although importers are prohibited from importing said goods, under certain circumstances goods that are prohibited for import may be re-imported after having been previously exported, subject to the provisions under the prevailing regulations.

Export

Regulation 18 also introduces new categories of goods that are prohibited for export, namely subsidized fertilizer, and metal remains and scrapings. Unlike the previous regulation, Regulation 18 sub-divides the mining goods category into (i) general goods; (ii) goods that are prohibited for export, which will come into force on 11 June 2023 and (iii) tin.

Applicability of prohibition and sanction

The prohibition applies to the (i) export of goods from the free-trade areas and free ports (KPBPB),(ii) import of goods from outside the customs area to KPBPB, (iii) export of goods from the exclusive economic zone to outside of the customs area, (iv)import of goods from outside the customs area to exclusive the economic zone, (v) export of goods from the bonded zone to outside the customs area and (vi) import of goods from outside the customs area to the bonded zone.

Anyone that fails to comply with the prohibitions will be subject to the sanctions set out under the prevailing laws and regulations. So it is important for business players to be familiar with the list of goods stipulated in Regulation 18.

Key takeaways

The issuance of Regulation 18 hopefully can start a new dynamic in the trade sector — to further simplify and unify the technical regulations on export and import, as most of the technical regulations on import or export are still regulated separately.

Click here to download the full alert.

 

LOGO_Indonesia HHP Law Firm_Jakarta

***

This publication was issued by HHP Law Firm (Hadiputranto, Hadinoto & Partners), a member firm of Baker McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner or equivalent in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome."


Copyright © 2022 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.