IMPORT LICENSING SYSTEM OF INDONESIA

REPLIES BY INDONESIA to the QUESTIONS FROM THE United States[1]

The following communication, dated 21 May 2024, is being circulated at the request of the delegation of Indonesia.

_______________

·_              Does Presidential Regulation No. 32/2022 have any relationship to Indonesia's administration of its import licensing system?

Reply:

Presidential Regulation No. 32/2022 is the regulation governs a mechanism aimed at providing transparency through reliable trade statistics, which will be implemented by the relevant ministries/institutions.

·_              Does the volume set by the Coordinating Ministry of Economic Affairs for a particular product under Presidential Regulation No. 32/2022 affect the administration of Indonesia's import licensing system, including the total volume of import licenses that Indonesia will issue for that product?

Reply:

This policy provides complete, detailed, transparent, and accurate data to the relevant ministries, influencing the volumes authorized.

·_              Does Indonesia wait to issue import licenses for a particular product until after the Coordinating Ministry of Economic Affairs sets the overall quantity for that product, pursuant to Presidential Regulation No. 32/2022?

Reply:

The issuance of Import Approvals for a particular commodity will be carried out after the Commodity Balance for that commodity is determined a year before the implementation. For a particular commodity that is not yet covered by the Commodity Balance system, Indonesia's previous import licensing regime will still apply.

·_              Can Indonesia elaborate on what actions it has taken or is planning to implement with regard to "principles of simplification and transparency" in order to address the delays in obtaining import licenses that importers are experiencing and the reductions to volumes received?

Reply:

This policy does not specifically outline the actions taken or planned to implement "principles of simplification and transparency" to address delays and volume reductions experienced by businesses. However, it states that this mechanism aims to establish a better business environment, certainty, and the free flow of goods. Additionally, it guarantees certainty in time and costs, with services fully conducted through a single electronic licensing system. The principle of transparency is implemented by notification of every process by business operators and minimizing face-to-face interactions.

·_              Can Indonesia please explain what is meant by "the readiness considerations of the relevant Government Agencies"? While Indonesia states it has implemented its Commodity Balance system to ensure easiness and an expedited import licensing regime, it remains unclear which products may be added to Indonesia's commodity balance policy and how that's determined. This lack of transparency brings unpredictability to the market and causes concerns for U.S. exporters, especially given the delays importers of specific agricultural products have experienced in receiving licenses since the commodity balance policy entered into force.

Reply:

This policy indicates that this mechanism will provide the relevant ministries with complete, detailed, transparent, and accurate data. This suggests that the inclusion of products in this policy may depend on the readiness and availability of reliable data from the respective relevant ministries and the business sector.

__________