Increase Added Value, Ministry Of Trade Allows Kratom Leaves To Be Exported

Kratom leaves (Between)

JAKARTA - The government through the Ministry of Trade (Kemendag) has officially regulated the handling, utilization, and trading of krotom plants. This rule is a follow-up to President Joko Widodo's (Jokowi) internal decision in June 2024.

For your information, previously the leaves of the krotom were not prohibited from being exported. However, there are no official regulations from the government. Now, the official rules for exporting these commodities already exist.

Or the krotom export trading system is contained in the Regulation of the Minister of Trade (Permendag) Number 20 of 2024 concerning the Third Amendment to the Minister of Trade Regulation Number 22 of 2023 concerning Goods Prohibited from Exporting, as well as the Minister of Trade Regulation Number 21 of 2024 concerning the Third Amendment to the Minister of Trade Regulation Number 23 of 2023 concerning Export Policy and Regulation.

These two regulations are set for August 26, 2024 and take effect 30 days after being promulgated on August 29, 2024 by the Ministry of Law and Human Rights.

The Director General of Foreign Trade of the Ministry of Trade (Kemendag), Isy Karim explained that the regulation of the export of krotom commodities aims to increase the added value and acceptance of Indonesian export products.

"The change in the Permendag of the trading system for the export of krotoms is a follow-up to the results of an internal meeting chaired by President Jokowi. In the meeting it was decided that the export of krotoms must be in accordance with the predetermined standards to increase added value and provide legal certainty," he said, quoted from an official statement, Tuesday, September 10.

In the rules of trading, the export of krotoms will apply standard export provisions, including free microbiological contamination, heavy metals, and other leaf mixtures.

Furthermore, Isy emphasized, Permendag Number 20 of 2024 is focused on export, not domestic use. In addition, the presence of this export trading regulation is to prevent the misuse of kronatoms.

"I hope that business actors can run this Permendag so that it can improve the Indonesian economy," he said.

For your information, in the Minister of Trade Regulation Number 20 of 2024, the Ministry of Trade details the type of product of chromo leaf that should not be exported, as stated in the attachment to the Permendag.

The krotom leaf itself has a code HS 12.11. The government prohibits the export of krotom leaves that have been destroyed in fresh or dried form, in pieces, or destroyed into powders with a size of more than 600 microns. The Ministry of Trade also prohibits the export of atomic leaves in intact form.

In the Minister of Trade Regulation 20 of 2024, it is regulated the types and sizes of krotom commodities that are prohibited from exporting. In the Permendag, provisions for exports have not been applied which have received the number and date of notification of export customs.

Meanwhile, the Minister of Trade Regulation Number 21 of 2024 regulates the types and sizes of chromo commodities that are allowed for export. In addition, it is stipulated that business licensing for the export of krotoms must meet the provisions as Registered Exporters (ET), as well as have Export Approval (PE), and Surveyor Report (LS).

The Permendag also regulates the conditions for exporters as well as the types, shapes, and sizes of the cronatoms that are allowed to be exported.