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November 29, 2023

Indonesia to Tighten Import Restrictions

November 29, 2023

The Ministry of Trade is finalizing a draft revision on Ministry of Trade Regulation 25 / 2022. The revision introduces an expansion and shifting of HS codes in the country's import restriction and prohibition list (lartas). Details of the commodities that are impacted by this updated lartas will be detailed further in the Appendix of this regulation. The consumer goods subject to the policy include toys, electronic goods, shoes, cosmetics, textiles, traditional medicine, clothes, accessories, and bags. Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said in a statement that the Government will assign such imports to be monitored by customs agencies at the border, mandating importers to obtain a permit (Persetujuan Impor) and a surveyor report (Laporan Surveyor). The new measure is not expected to affect vessel dwelling times at any ports. The Ministry of Trade does not intend to open another public/industry consultation session. They are looking to enact this regulation within early December by the latest. The new lartas will then come into force after 90 days (3 months) after the date of promulgation.
Steps to tighten the flow of imported goods in the country were taken in response to complaints about the high number of imported goods penetrating traditional markets and the increased sales of non-domestic goods on e-commerce platforms. The new regulation reflects a trend of protectionism in Indonesia’s economic policy. Last September, Indonesia banned e-commerce transactions on social media to protect offline merchants and marketplaces and to safeguard commerce activities by local SMEs.

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