Indonesia: New Regulations Of Minister Of Trade Issued

Last Updated: 16 February 2016
Article by Jono Yeo and Kevin Y. Noija

As part of the Economic Policies Package I introduced by the President Joko Widodo on 9 September 2015, the newly appointed Minister of Trade, Mr Thomas Lembong, has accelerated the process of deregulation for export and import by repealing and revising a number of existing regulations and revising are as follow:

REVOCATION

1. Regulation of the Minister of Trade ("MOT Reg") No. 73/M-DAG/PER/9/2015 on Obligation on Labeling using Bahasa Indonesia on Goods ("MOT Reg No. 73/2015");

2. MOT Reg No. 74/M-DAG/PER/9/2015 on Inter-island Trade of Refined Sugar;

3. MOT Reg No. 75/M-DAG/PER/9/2015 on Revocation of the Decision of the MOT No. 528/MPP/KEP/7/2002 on Imports of Cloves;

4. MOT Reg No. 76/M-DAG/PER/9/2015 regarding Revocation of MOT Reg No. 11/M-DAG/PER/3/2010 on Imports of Machinery, Equipment Machinery, Raw Materials, Blank Optical Discs, and Optical Discs as amended by the MOT Reg No. 35/M-DAG/PER/5/2012;

5. MOT Reg No. 77/M-DAG/PER/9/2015 on the Revocation of MOT Reg No. 41/M-DAG/PER/12/2011 on Imports of Sodium Tripolyphosphate (STPP);

6. MOT Reg No. 78/M-DAG/PER/9/2015 on the Revocation of MOT Reg No. 45/M-Dag/Per/6/2015 on Import Provisions of Tires;

REVISION

7. MOT Reg No. 70/M-DAG/PER/9/2015 on Importer Identification Number (Angka Pengenal Importir - API);

8. MOT Reg No. 71/M-DAG/PER/9/2015 on Provisions of Import Guideline on the Horticultural Product;

9. MOT Reg No. 72/M-DAG/PER/9/2015 on the Third Amendment of MOT Reg No. 14/M-DAG/PER/3/2007 regarding Standardization of Trade Services and Supervision of Indonesian National Standard (SNI) on the Traded Goods and Services;
Five (5) of the aforementioned new regulations shall take effect after being signed which are related to inter-island trade of sugar, import of cloves, optical discs, STPP, and tires, yet the MOT Reg regarding Obligation on Labeling using Bahasa Indonesia on Goods shall apply on 1 October 2015. For the others, the MOT Reg regarding Supervision of Indonesian National Standard (SNI) on the Traded Goods and Services shall apply 30 days after the said regulation being signed, while MOT Reg regarding Import Guideline on the Horticultural Product shall apply on 1 December 2015 and finally, the MOT Reg regarding Importer Identification Number (Angka Pengenal Importir- API) shall apply on 1 January 2016.
The regulation on importers' identification numbers is intended to relax the import requirements while MOT Reg No. 73/2015 aims to give companies more time to meet Indonesian-language labels requirements for imported products after the products have arrived in Indonesia. In this article, we would like to particularly discuss the MOT Reg No. 73/2015.

In brief, MOT Reg 73/2015 consisted fewer articles (17 articles and 5 attachments) compared to MOT Reg 67/2013 that is consisted of 25 articles and 11 attachments. However, MOT Reg 73/2015 has more restrictions than MOT Reg 67/2013.
The key features of the new MOT Reg 73/2015, which has been in effect since 1 October 2015, are as follows:

1. Distributors (Pedagang Pengumpul)
MOT Reg 73/2015 also regulates that a distributor has also the obligation to put the label on the goods that they receive from the micro and small entrepreneurs, where such goods are going to be traded under their (distributor's) trademarks. Previously on MOT Reg 67/2013, such provision was never mentioned since MOT Reg 67/2013 only defines in general what a entrepreneur is.

2. Indonesian National Standard(Standar Nasional Indonesia – SNI)
For such specific products which have been subjected to the SNI, MOT Reg 73/2015 also requires the entrepreneurs to put the goods' label in accordance with the SNI guideline beside the provisions under MOT Reg 73/2015.

3. Simplification of Import
Previously under MOT Reg 67/2013, entrepreneurs (in this case importer) are obliged to apply for Statement Letter of Labeling in Bahasa Indonesia (Surat Keterangan Pencantuman Label dalam Bahasa Indonesia – SKPLBI) which later subject to the approval of the Director of Consumer Empowerment of the Ministry of Trade (Direktur Pemberdayaan Konsumen Kementerian Perdagangan).
However, such obligation is now removed yet the importer is still obliged to use or put label using Bahasa Indonesia on the imported goods, as expressly mentioned in Article 2 of MOT Reg 73/2015.

4. Goods Exemption
Under new MOT Reg 73/2015, the goods that are exempted from the obligation to use the label in Bahasa Indonesia are only for (i) the bulk goods (barang curah); and (ii) the produced goods of micro and small entrepreneurs.
Previously, under MOT Reg 67/2013, entrepreneurs could avoid the obligations to use label in Bahasa Indonesia by applying for Letter of Liability Exemption on Labeling in Bahasa Indonesia (Surat Pembebasan Kewajiban Pencantuman Label dalam Bahasa Indonesia – SPKPLBI), however, this re-course is removed under the new MOT Reg 73/2015.

5. Sanctions & Other Provisions

  • Sanctions

As regards to sanctions, MOT Reg 73/2015 rules similar sanctions with MOT Reg 67/2013.
Beside above obligations, both regulations also rule that, among others, (i) entrepreneurs shall revoke their traded goods from markets until they comply with the provision related to the goods' label and (ii) entrepreneurs shall know the detail information of the supplier of such goods where failing of which will lead into the following sanctions: a. Revocation of trade license(s); and/or b. Revocation of other business licenses.
However, prior to the aforementioned sanction(s) be rendered, the entrepreneur would firstly receive two (2) written notices (maximum) within 12 (twelve) working days.

  • Other provisions
    MOT Reg 73/2015 provides one (1) year grace period to entrepreneur to comply with this new regulation and as mentioned, MOT Reg 73/2015 has been in effect since 1 October 2015.
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