The Indonesian Government Officially Revises Minister of Trade Regulation 36 of 2023

BUSINESS AND TRADE - JAKARTA. A recent limited coordination meeting (rakortas) at the ministerial level for the economy has decided to review the import restriction rules in the Minister of Trade Regulation Number 36 of 2023 on Import Policy and Regulation, as amended by the Minister of Trade Regulation Number 03 of 2024.

"So it's not about revoking but revising or changing," said Arif Sulistyo, Director of Imports at the Directorate General of Foreign Trade of the Ministry of Trade, to Kontan on Tuesday (16/4) evening.

Arif explained that three points are being revised in the regulation. Firstly, it concerns the import of goods sent by Indonesian Migrant Workers (PMI).

Secondly, it relates to the personal goods of passengers, and finally about the evaluation of import restriction rules (lartas) that require recommendations or technical considerations from Ministries and Institutions.

"The meeting was led by the Coordinating Minister for the Economy and attended by representatives of ministries/institutions ranging from the Ministry of Industry, Ministry of Trade, Ministry of Finance, Ministry of Foreign Affairs, State Secretariat, Cabinet Secretariat, Ministry of Environment and Forestry, BPOM, BP2MI," said Arif.

Meanwhile, Haryo Limanseto, Spokesperson for the Coordinating Ministry for the Economy, stated that based on the results of the rakortas, it was stated that the goods sent by Indonesian Migrant Workers (PMI) are goods owned by PMI sent by PMI who are working abroad and not for trade, so they do not need to be regulated in the Minister of Trade Regulation on Import Policy and Regulation (Permendag 36/2023 juncto 3/2024)

"The regulation of PMI goods imports is based on the provisions of the Minister of Finance Regulation (PMK) 141/ 2023 on the Provisions of PMI Goods Imports and its implementation is carried out by Customs (DJBC)," he said, Tuesday (16/4).

The other point of the regulation states that the government will soon revise or change Permendag 36/2023 juncto 3/2024, especially by removing from Permendag Appendix III regarding the Import of PMI Goods Shipments which regulates the type or group of goods and the limit of the number of goods for each shipment of goods.

"The regulation of the limit of PMI goods shipments is carried out according to PMK 141/2023, which explains in detail that PMI can send PMI-owned goods sent by PMI who are working abroad and not for trade," said Haryo.

Furthermore, the provision of limiting the type and number of goods is not applied, but there is a limitation on the value of goods that get Duty Exemption, not subject to VAT, PPnBm, and PPh Article 22 Import.

PMI goods shipments are given duty exemption with a customs value of US$ 500 per shipment, at most 3 shipments per year for PMI recorded at most US$ 1,500 per year.

"If there is an excess of the value of the goods in question (more than US$ 500 or more than US$ 1,500 for recorded PMI, then the excess value will be treated as regular Goods Shipments (Non-PMI) and subject to Import Duty of 7.5% (according to PMK 141/2023)," he explained.

In the rakortas points, it is also mentioned that in addition to PMI goods shipments, it has also been agreed to regulate the personal belongings of passengers which will also be removed from the regulation in Permendag No. 36/2023 juncto No. 03/2024, and fully regulated in PMK.

Regarding the issuance of Technical Considerations (Pertek) for several commodities, it was agreed to be postponed considering the readiness of regulations and systems in the related Ministries and Institutions, and it was agreed to return the provisions of Permendag No. 36/2023 juncto No. 03/2024 to the ease of import according to the provisions of Permendag No. 20/2021 juncto No.25/2022.

Then, the government will regulate the application of the transition period of the change from Permendag No. 36/2023 to No. 03/2024 so as not to cause obstacles and problems in the field implementation.

"Further discussions and regulations on the change of rules, will soon be discussed in the Technical Coordination Meeting involving all related Ministries and Institutions and will be coordinated by the Secretary of the Coordinating Ministry for the Economy," added Haryo.