Indonesia: Minister of Trade imposes more restrictions on the import of finished products by manufacturers – is it time to restructure?


The Ministry of Trade (MOT) has issued Minister of Trade Regulation No. 59 of 2020 (“Regulation 59”) which is an amendment to Minister of Trade Regulation No. 118/M-DAG/PER/12/2015 on Import Provisions for Complementary Goods, Goods for the Purpose of Market Testing, and After-Sales Service (“Regulation 118”).

Regulation 59 was issued to limit the number of industries allowed to import manufactured goods in the form of complementary goods, goods for the purpose of market testing and goods for after-sales service ( “Goods”). By putting a limitation on the number of industries allowed to import Goods, Regulation 59 is expected to boost the local manufacturing sector, which has been affected by the coronavirus pandemic.

For instance, Regulation 59 categorizes companies that want to import Goods into sectors/subsectors. Under the previous regulation, there was no categorization of sectors/subsectors.

The above provision is one of the key highlights of Regulation 59. We will further elaborate on the differences between Regulation 59 and the previous regulation below.

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~sLexology, 18 August 2021