In an effort to optimize the importation of certain goods, the Minister of Trade (“Minister”) issued Regulation No. 36 of 2023 on Import Policy and Provisions (“Regulation 36/2023”),[1] which was previously amended twice through the issuance of Regulation No. 3 0f 2024 (“First Amendment”)[2] and Regulation No. 7 of 2024 (“Second Amendment”)[3] respectively.

However, in light of recent issues that have involved container congestion at ports as a result of delays in the issuance of import approvals (Persetujuan Impor) and technical considerations (Pertimbangan Teknis) for certain commodities following the enactment of Second Amendment,[4] the Minister has now decided to issue Regulation No. 8 of 2024 on the Third Amendment to Regulation 36/2023 (“Third Amendment”), which officially comes into force on 18 June 2024.[5]

In essence, the Third Amendment aims to reduce and ultimately solve the ongoing problem of container congestion at the country’s seaports, thereby improving and accelerating the various processes involved in commercial imports. Upon its enforcement, importers of the various types of goods that are outlined under Appendices I and II to Third Amendment that arrive at designated ports between 10 March - 18 June 2024 will be encouraged to promptly comply with the new import requirements in order to facilitate the immediate clearance of their goods.[6]

Against the above backdrop, this edition of Indonesian Legal Brief (“ILB”) offers a summary of the new import policies that have been introduced under the Third Amendment. However, due to the broad nature of the provisions set out therein, our discussion has been limited to the following areas:

1. New Import Provisions for Free-Import and/or Restricted-Import Consignment Goods and Personal Goods (“Consignment/ Goods”);
2. Import Approval Exemptions; and
3. Technical Consideration Exemptions.

New Import Provisions for Free-Import and/or Restricted-Import Consignment Goods

Under the original framework of Regulation 36/2023, imports of certain goods owned by Indonesian migrant workers were permitted without the need for the relevant parties to secure Business Identification Numbers (Nomor Izin Berusaha/NIB) and/or Business Licenses for the import sector or complete verifications/technical inspections.[7] The Third Amendment now further expands this list by including the following goods under the abovementioned exemptions:[8]

1. Personal consignment goods;
2. Passengers’ personal goods;
3. Personal goods of the crew members of transportation facilities;
4. Personal goods of border crossers;
5. Personal effects of Indonesian citizens and foreign citizens; and
6.  Consignment goods for hajj pilgrims that are sent through postal organizers.

However, it is important to note that the Third Amendment also specifically limits the importation of certain personal items that are carried by passengers, including mobile phones, handheld computers and tablets, from locations outside of official Indonesian customs areas into free-trade and free-port zones (Kawasan Perdagangan Bebas dan Pelabuhan Bebas/KPBPB). Details of these limitations are summarized in the following table:[9]

Import Approval Exemptions

Newly featured under the Appendices to the Third Amendment are a number of provisions that ease the import process for certain specific commodities, including exemptions from the requirement to secure the previously mandated import approvals. Imports of commodities such as traditional medicines and health supplements, cosmetics and household healthcare supplies, bags and valves may now only require surveyors’ reports (Laporan Surveyor/LS) to be provided, as summarized in the table below:

In terms of lubricant raw materials and valves, the Third Amendment has now clarified that the issuance of import approvals based on the Second Amendment will remain in force for up to one month after the Third Amendment comes into force, i.e. until 18 July 2024.[15] Furthermore, import approvals for the aforementioned commodities that were issued prior to the effective date of the Third Amendment will remain valid until their relevant expiration dates without any further verifications or technical tracing being required.[16]

However, it should be noted that goods such as iron, steel, alloy steel, their derivatives, textiles and textile products are excluded from the Third Amendment’s import regulations and are therefore not exempted from the verification and technical inspection requirements.[17]

Technical Consideration Exemptions  

In order to ensure improved import leniency for commodities such as electronics, footwear and ready-made clothing and accessories, exemptions from the obligation to secure technical considerations from the Ministry have now been introduced. A comparison between the import requirements set out under both the Second Amendment and the Third Amendment in relation to these types of commodities is broadly summarized in the following table:[18]

Furthermore, a number of additional provisions now apply to some of the aforementioned commodities that are imported in relation to the business activities of importers that have secured valid Business Identification Numbers (Nomor Izin Berusaha/NIB) as Importer Identification Numbers (Angka Pengenal Importir/API). These provisions are relevant to the exemption category for goods that are imported by API-P in order to be used as capital goods, raw materials and/or auxiliary materials in relation to the relevant industries, as summarized in the following table:

Key Takeaways

Delays in the issuance of import approvals and technical considerations have resulted in 17,304 containers currently being held at the port of Tanjung Priok and 9,111 containers being held at the port of Tanjung Perak. In order to address this issue, the Third Amendment introduces various import relaxations for several types of commercial goods. In this regard, import approval exemptions now apply to traditional medicines and health supplements, cosmetics and household healthcare supplies, bags and valves, while exemptions to technical consideration requirements apply to electronics, footwear and ready-made clothing and accessories.

Source: hukumonline.com