Regulations Restricting Importation of Raw Materials, Kadin Proposes Review

Regulations Restricting Importation of Raw Materials, Kadin Proposes Review


Indonesian Chamber of Commerce (KADIN) logo. (BP/Ant)

JAKARTA, BALIPOST.com – Regarding the implementation of Minister of Trade Regulation (Permendag) Number 36 of 2023, especially regarding the limited import ban, the Indonesian Chamber of Commerce and Industry (Kadin) asked for the government’s consideration.

Deputy General Chairperson for Trade at Kadin, Juan Permata Adoe, said that the Indonesian Chamber of Commerce and Industry fully supports the government’s efforts to improve import governance and increase industrial competitiveness. However, there are several things that need to be anticipated in terms of implementing these regulations.

“Regarding several articles regarding restrictions on the import of raw materials and auxiliary materials, the Indonesian Chamber of Commerce and Industry has found that there is limited capacity in the domestic upstream industry,” said Juan in a statement in Jakarta, quoted by the Antara news agency, Friday (23/2).

Juan said that restrictions on imports of raw materials and auxiliary materials should take into account the limited capacity of domestic upstream industries, so that shortages of raw materials and auxiliary industrial materials can be avoided and targeted.

For this reason, continuous evaluation is needed on HS codes that are subject to limited restrictions, especially raw materials or auxiliary materials for export-oriented industries.

The Indonesian Chamber of Commerce and Industry is concerned that a limited ban that is not well targeted will cause disruption to the supply chain and continuity of production in a number of national strategic industries, for example automotive, mining including smelters, electronics as well as export-oriented food and beverages.

Several commodities that need to be reviewed include industrial salt, steel and its derivatives, heavy vehicle tires, Monoethylene Glycole (MEG), plastic raw material commodities, non-woven commodities, fiber optic cable commodities and other raw materials that have not been fully produced in country.

Regarding the readiness of infrastructure and supporting regulations, Kadin appealed to the electronic system and all implementing regulations related to Minister of Trade Regulation 36/2023 to be ready at least 3 to 6 months before the implementation of this regulation.

This is necessary to accommodate the surge in licensing applications and to provide adequate time to all relevant parties to comply with the provisions of these regulations.

Kadin also requested that there be an additional grace period of 3 to 6 months after the relevant electronic system and all implementing regulations are available, in order to ensure the stability of the supply chain and ensure the sustainability of the domestic production process.

Apart from that, Kadin emphasized that the previous regulations can still apply for shipments with Bill of Lading (BL) before March 10, this is necessary to accommodate in-transit shipments or shipments that are currently in transit. “This policy regarding in-transit shipments is very important for the sustainability of the production process and can have an impact on achieving industrial productivity,” said Juan.

Juan said that Kadin will always be a partner of the government to ensure increased export performance, which of course must also be supported by a conducive business ecosystem. (Kmb/Balipost)

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This news article has been translated from the original language to English by WorldsNewsNow.com.

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