Indonesian Ministry of Trade (MOT) issued a Regulation No. 36 of 2023 on Import Policy and Import Arrangement (“MOT Regulation 36”), which tighten the flow of imported goods into Indonesia through import restrictions. After MOT Regulation 36 started effective on 10 March, there have been business disruptions due to black-out period, difficult requirements to obtain the import approval and longer lead times for customs clearance (piling up of containers at the port) – eventually affecting the importers’ ability to meet the domestic market demand.
However, the MOT just made several revisions to the regulation, with the most recent being MOT Regulation No. 8 of 2024 (“MOT Regulation 8“), which took effect on 17 May 2024. This new regulation provides relaxation on import licensing for certain commodities, as follows:
- Importation of traditional medicine and health supplements, cosmetics and household supplies, bags and valves commodities → which in MOT Regulation 36 were tightened by adding Import Approval (PI) and Surveyor Report, now only requires Surveyor Report.
- Importation of electronics, footwear, apparel and accessories commodities which in MOT Regulation 36 were tightened by adding Technical Consideration (TC) from the Ministry of Industry for obtaining an Import Approval from the MOT, are no longer requirea TC.
- Importation of iron and steel as well as textile products that arrived at the port of destination from 10 March up to 17 May are exempted from PI, and the verification to obtain a Surveyor Report can be carried out at the port of destination or other Indonesia customs areas.
Goods that have arrived at the port since 10 March 2024 should refer to the provisions of MOT Regulation 8. The revisions under MOT Regulation 8 are aimed to overcome the supply chain challenges on procuring certain products and to resolve the containers backlogs at several ports in Indonesia.
