Prevent Illegal Imports, Ministry Of Trade Issues Permendag Number 27

Minister of Trade Budi Santoso (Photo: Ministry of Trade)

JAKARTA - Trade Minister Budi Santoso said that the Regulation of the Minister of Trade Number 27 of 2024 concerning Inter-Island Trade is a step to prevent the entry of illegal imported goods into the country.

"This Permendag is also to prevent illegal imports. All movement of goods will be clearly recorded so that it can be known with certainty the distribution flow between islands," he said in his remarks at the socialization event of Permendan Number 27 of 2024, in Jakarta, Tuesday, November 26.

Permendag Number 27 of 2024 revises the inter-island trade rules at Permendag Number 92 of 2020. Permendag Number 27 of 2024 regulates PAB reporting to replace Domestic Manifes which is regulated in Permendag 92 of 2020.

The regulation will be effective within 90 days of being promulgated, starting February 1, 2025.

Budi said that one of the things regulated in this latest Permendag is the business process of the Inter-Island Goods Trade Notification (PAB) as an important part of one national data on inter-island trade.

"PAB reporting is an important key in accelerating the implementation of the National Logistics Ecosystem in Indonesia. The PAB document contains information on the distribution flow of goods that can assist the government in planning, intervention activities if needed, as well as monitoring of distributed goods," said Budi.

Budi said the revision of inter-island trade regulations was carried out to perfect and integrate the PAB reporting business process, eliminate duplication reporting and create one national data on inter-island trade, increase compliance with business actors in PAB reporting, and increase supervision.

"Regarding supervision, especially for trade between certain islands of goods, minerals and coal, as well as goods that are the result of natural resources," he said.

Permendag Number 27 of 2024 is a follow-up to Presidential Instruction Number 5 of 2020 concerning the Arrangement of the National Logistics Ecosystem. The National Logistics Ecosystem aims to fix and improve national logistics performance, improve investment climates, increase national economic competitiveness, and optimize inter-island trade.

"The government has made a breakthrough to streamline logistics costs by reorganizing the logistics sector, one of which is through the National Logistics Ecosystem Program as outlined in Presidential Instruction Number 5 of 2020 concerning the Arrangement of the National Logistics Ecosystem," he said.

In addition, Budi also said that Permendag Number 27 of 2024 is also a mandate for domestic market integration as stated in Article 23 paragraph (1) of Law Number 7 of 2014 concerning Trade.

"The simplification of PAB reporting is part of the domestic market security program which is the main work program of the Ministry of Trade," said mendag Budi.

Obligation to Report PAB

Budi explained that with the promulgation of Permendag Number 27 of 2024, cargo owners (cargo owners) or those that can be authorized to the Transportation Management Service Company (PJPT), have an obligation to submit PAB reporting.

Furthermore, Budi said the report was addressed to the Ministry of Trade online through the Indonesia National Single Window (SINSW) System which is integrated with INATRADE.

The obligation to deliver PAB applies to all goods traded between domestic ports. This provision also applies to imported goods and goods intended for export but stops at the domestic port first," he explained.

In addition, this provision also applies to goods shipped to the Disadvantaged, Remote, Outermost, and Border (3TP) areas, both using commercial boats and subsidized vessels which are included in the activities of Maritime Outlets or sea highways.

Budi said the obligation to deliver PAB is a form of the synergy between the Ministry of Trade and various parties, including the Ministry of Transportation, the National Logistics Ecosystem Team, the National Single Window Institute (LNSW), the Corruption Prevention Stranas Team of the Corruption Eradication Commission, the Office of Harbormaster and Port Authority (KSOP), and PT Pelabuhan Indonesia.

Thanks to this good collaboration, the submission of PAB by business actors is sufficient to be done once through SINSW which is integrated with the system owned by PT Pelabuhan Indonesia for the issuance of port entry access, Single Submission (SSm) Transport for ship departure documents, as well as the Mineral and Coal Information System (SIMBARA) belonging to the Ministry of Energy and Mineral Resources.

"With an integrated logistics system, the government can easily monitor and monitor goods distributed between islands. This, among other things, is also done to prevent the smuggling of goods abroad and prevent the entry and circulation of smuggled goods in the country," he said.