Global Trade Alert

On 28 March 2014, the Indonesian Ministry of Trade issued regulation 19/M-DAG/PER/3/2014 applying strong restrictions to rice imports and exports.
 
The regulation bans private endeavours from importing medium grain rice. The monopoly for this rice type has been handed to the National Logistics Agency (BULOG). The Agency, however, shall import only if so instructed by the Ministry of Trade.
 
According to article 8(1) of regulation 19/M-DAG/PER/3/2014, 'Rice imports for the purpose of price stabilization, emergency situations and distribution to poor and food insecure people can be conducted if:
a.the rice is no more than 25% broken
b. imports are conducted solely by the public company BULOG.'(own translation)
Also, imports are not allowed in the period one month before to two month after the harvest season in Indonesia. The exact dates shall be set by the Ministry of Agriculture (art. 8(3 & 4)).
 
Other technical barriers have been set for specialty rice such as a 'Varietal Purity Attestation' and verifying the country of origin.
 
Furthermore, the general import license is no longer eligible for rice. Private rice importers must now be certified either as Registered Importers (hereinafter: RI) or as Producer Importers (hereinafter: PI). Both certifications are issued by the Ministry of Trade and apply until the end of the given year or up to three (for RI) / six (for PI) months from the date they have been issued - whichever of the two deadlines comes first.
 
100% broken rice can be imported as raw material in food manufacturing if the importer is registered as a PI and has received approval from the Trade Ministry. Prior to this approval, it also needs a recommendation from the Ministry of Industry or a designated body by the Ministry. (art. 11-23)
 
Article 3(1) of the regulation also constitutes that 'the export of rice can only be conducted if the domestic rice supply exceeds demand' (own translation). Given that in recent years Indonesia has not been able to produce sufficient amounts for its national market, the regulation introduces in actu an export ban for rice.
 
The regulation also includes labelling restrictions. Imported rice must have a label in Bahasa Indonesia before the import process and must include information on the type of rice, gross weight, broken percentage, country of origin, name and address of exporter, as well as name and address of importer (art. 36(2) sub. 18 of 19/M-DAG/PER/3/2014).
 
The provisions came into force on the day of issuance. However, the regulations on labelling apply starting from 1 October 2014.
 
Update:
On 8 December 2015, the Indonesian Ministry of Trade issued regulation 103/M-DAG/PER/12/2015 replacing the regulation discussed at hand (cf. Related Measures). However, as the trade restrictionswere only partially lifted, this measure remains classified as implemented.