Regarding developments in recent days concerning the pile-up of containers at several major ports, such as Tanjung Priok, Tanjung Perak and Belawan, the Ministry of Industry explained several points at a press conference in Jakarta on Monday (20/5).
“First, the Ministry of Industry supports the President's direction to resolve the container pile-up at the ports. Along with this, Kemenperin also supports the issuance of Minister of Trade Regulation Number 8 of 2024 on Import Policies and Regulations, as long as it protects domestic industry,” Ministry of Industry spokesperson Febri Hendri Antoni Arief said at the event.
Kemenperin responded to the Ministry of Finance's statement that the pile-up affects the supply chain of domestic manufacturing. Febri said that since the Permenperin policy on Technical Considerations (Pertek) took effect, there have been no complaints from businesses about disruptions to industrial raw material supply. It therefore needs to be proven whether many of the piled-up containers are raw or auxiliary materials for industry.
“Next, responding to the Ministry of Trade's statement that the cause of the pile-up is obstacles in technical approval as a requirement for import licensing, we state that Kemenperin is not directly related to the container pile-up at these ports. In line with the Ministry of Industry's duties and functions as supervisor of domestic industry, we have an obligation to ensure industrial raw material needs are met,” he stressed.
Second, as of Friday, 17 May 2024, the Ministry of Industry had received 3,338 applications for technical considerations (Pertek) for 10 commodities. Of these, 1,755 Pertek have been issued, 11 applications rejected, and 1,098 applications (69.85%) returned to applicants to complete their requirements.
Third, the Coordination Meeting held on Thursday, 16 May 2024, produced data showing a difference between the number of Pertek and Import Approvals (PI) issued by the Ministry of Trade. For example, of 1,086 Pertek issued for iron or steel, alloy steel and derivative products, 821 PI were issued. The volume of the gap is roughly 24,000 containers. At the same meeting, the Directorate General of Customs and Excise also said it did not know whether these containers belonged to companies with a General Importer Identification Number or a Producer Importer Identification Number.
Fourth, the Ministry of Industry is responsible for the sustainability of domestic industry, which must be safeguarded and protected so its products can be absorbed by the market, especially at home. “We therefore have an interest in restrictions on imported goods similar to those already produced domestically,” Febri explained.
Fifth, under laws and regulations, every imported good brought into the territory of the Unitary State of the Republic of Indonesia, especially goods subject to prohibition and/or restriction (Lartas), must have import licensing documents. One requirement for obtaining such licensing is a technical consideration issued by the Ministry of Industry. Imported goods in the Lartas category should therefore not be able to enter the customs area before having import licensing documents, as in the current pile-up.
Sixth, technical considerations at the Ministry of Industry are issued electronically through the National Industrial Information System (SIINas), with the process regulated by Minister of Industry Regulations. Following up on Permendag No. 36 of 2023, the Ministry of Industry has set all regulations on procedures for issuing technical considerations for goods in the Lartas category. Technical considerations are issued within at most five working days after the complete and correct application and supporting documents are received.
Seventh, in carrying out its duty to safeguard domestic industry, Kemenperin must maintain a balance between domestic production and its market. Febri stressed that Kemenperin is not allergic to imported goods as long as they are needed at home and domestic production is insufficient. The Lartas policy is therefore aimed at not disrupting domestic industry.
Eighth, Kemenperin continues to push for the facilities needed to sustain domestic industry, including easy access to raw materials. For raw materials, we always ensure there are no obstacles for domestic industry, whether sourced locally or imported. For finished goods or end products that can be sold directly in the domestic market, Kemenperin hopes they will remain restricted and follow the Commodity Balance concept, which in principle balances domestic production and imports.
Ninth, Kemenperin understands the technical problems caused by policy changes resulting from changes to the Minister of Trade Regulation. Under the rules on drafting laws and regulations, every regulation must go through a process involving relevant Ministries/Agencies. The impact of a regulatory change is therefore not the responsibility of a single Ministry/Agency.
Tenth, Kemenperin implements all laws, regulations and policies set by the President and continues to guard against a flood of imports, especially downstream or finished products, to protect domestic industry and investment, while ensuring goods do not pile up at ports again.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia