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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.