Permendag Regarding The Prohibition Of Imported Goods, Apindo: More Effective Than Before

JAKARTA - The government has revised the Regulation of the Minister of Trade (Permendag) Number 36 of 2023 concerning Import Policy and Regulation.

The regulation was changed to Permendag Number 8 of 2024, which is expected to solve problems with import licensing and container buildup at the port.

Coordinating Minister for the Economy Airlangga Hartarto said that in an internal meeting with President Joko Widodo, it was agreed that the regulation or revision of Permendag Number 36 of 2023 had been made.

In addition, Airlangga added that a Decree of the Minister of Finance would also be issued which re-established the list of goods affected by the ban and restrictions on imports.

"Following up on the results of the internal meeting, it has been determined by the Minister of Trade Regulation Number 8 of 2024 which is expected to be able to solve both problems (import licensing constraints and container buildup at the port)," he said at a press conference, Friday, May 17.

Responding to this, Chairman of the Indonesian Employers' Association (Apindo) Shinta W. Kamdani assessed that the Minister of Trade Regulation Number 8 of 2024 was more effective than the previous regulation because there was relaxation for 7 groups of goods and a number of commodities whose requirements were only in the form of surveyor reports in the context of releasing containers.

"The issuance of Permendag 8/2024 is important so that this relaxation is not misused for illegal importers or to be traded freely in the domestic market unhealthyly when it is classified as commercial goods," Shinta said in a written statement received by VOI, Monday, May 20.

He considered that this policy was in line with the aspirations of business actors who needed the ease of importing raw/auxiliary materials and industrial capital goods. Given, tightening imports of illegal consumer and import products creates unhealthy business competition.

"The business world will cooperate with the government to socialize Permendag 8/2024, especially for business actors who experience import difficulties, monitor the implementation of new regulations, minimize other obstacles to raw/auxiliary materials and capital goods needed by business actors," said Shinta.

Later, said Shinta, this socialization will include aimed at all stakeholders related to import permits from upstream to downstream. Thus, regulations can be implemented comprehensively in the field.

"The business world is also working with the government to minimize the misuse of import regulations, especially imports of domestically traded commercial/product products," he said.

Furthermore, Shinta also appreciated the issuance of Permendag 8/2024 which simplified the provisions of import procedures, especially in overcoming a number of import licensing constraints which resulted in the accumulation of containers at the port.

"Apindo will simultaneously study this Permendag, especially those that affect certain sectors such as TPT which has been under pressure by illegal imports. Maybe special regulations related to imports for the TPT sector need to be issued," he added.