IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2011 | Removal date: 01 May 2012
Still in force

Import licensing requirement

On 4 October 2010, the Indonesian Ministry of Trade announced regulation 39/M-DAG/PER/10/2010 allowing for manufacture companies to also import finished goods - mostly for trading purposes.
After the introduction of a new import license regime in January 2010 (cf. Related Measures), business entities in Indonesia could only obtain import licences for either own production/consumption or trading. This is no longer valid with the regulation 39/M-DAG/PER/10/2010. However, the entity requires an API-P import license and has to obtain permission for the importation of each finished good by the Director General of Foreign Trade.
This permission can be granted, for instance, only for finished goods which come from the same business sector as the company wanting to import the finished products from abroad.
The regulation came into force on 1 January 2011. However, due to a Supreme Court ruling on June 2011, the regulation was repealed and the Ministry of Trade was forced to introduce a new regulation (27/M-DAG/PER/5/2012; cf. Related Measuers) forbidding companies to import goods for both production and trading purposes. The ruling was based on the argumentation that Indonesian finished goods were not ready to fully compete with those from abroad.

AFFECTED COUNTRIES

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