The Ministry of Industry has completed drafting the supporting regulations for Minister of Trade Regulation Number 36 of 2023 in conjunction with Minister of Trade Regulation Number 3 of 2024 on Import Policies and Regulations. Supporting regulations in the form of Minister of Industry Regulations (Permenperin) are now available for the regulated industrial commodities, as directed at the Limited Cabinet Meeting chaired by the President.
With the Permenperin on procedures for issuing technical considerations (Pertek) for commodities such as apparel, footwear, iron or steel, traditional medicines and health supplements, cosmetics and electronics, processing of import requests is now running through the INSW (Indonesia National Single Window) portal. For tires, the regulation is in the process of promulgation in the State Gazette.
“Completing these regulations takes time, from drafting, harmonization and obtaining a promulgation number, after which they can be declared in force and used as the legal basis for implementing the policy. Each regulation also takes a different amount of time depending on the complexity of the product,” the Minister's Special Staff for Law and Supervision and Kemenperin spokesperson Febri Hendri Antoni Arief said in Jakarta on Sunday (21/4).
Febri explained that some of the imported commodities requiring Pertek are final industrial products. For raw materials, the process has so far been very smooth, with Pertek issued quickly, within at most five working days.
With these regulations in force, there is no reason to change the Lartas rules again for products that are ready. This is expected to increase utilization of domestic industry, which can on average already produce goods similar to downstream imports, and strengthen the foreign exchange position of the rupiah, which is under pressure. “Moreover, efforts to change the Permendag again are feared to cause a flood of similar downstream products into the country, risking the death of domestic industry,” Febri said.
Previously, Pertek applications from industry could not be processed because there was no legal basis. With the new regulations, requests are flowing from Kemenperin to the INSW Portal and to the Ministry of Trade for issuing Import Licenses. “We urge companies applying for Pertek to upload the documents required by the regulations, such as previous import realization documents and industrial capacity for holders of a Producer Importer Identification Number (API-P). Holders of a General Importer Identification Number (API-U) also need to adapt to the National Industrial Information System (SIINas) portal,” Febri reminded.
Kemenperin is doing its utmost to serve all parties needing Pertek for these products, with reference to national supply and demand. Kemenperin therefore hopes all parties—ministries and agencies, industry, businesses, importers and associations—can work together well to meet national supply and demand. “This is to avoid misinterpretation of the applicable regulations,” Febri stressed.
Efforts to grow national industrial capability and encourage investment, especially in downstream products with large import volumes such as air conditioners, washing machines and refrigerators, continue, given that these products are already available domestically. Imports can be made to meet shortfalls in consumer needs. “We stress that imports are not banned, but their volume is regulated so that the industrial sector's contribution to the national economy can increase,” the Kemenperin spokesperson concluded.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia