ANNOUNCEMENT 11 Apr 2014

In April 2014, the government of Indonesia announced a change in import formalities.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Official document 20/M-DAG/PER/4/2014 (in Bahasa Indonesia):
http://www.kemendag.go.id/files/regulasi/2014/04/11/20m-dagper42014-id-1398307202.pdf

Amendment 72/M-DAG/PER/10/2014 to the initial regulation (in Bahasa Indonesia):
http://www.kemendag.go.id/files/regulasi/2014/10/14/72m-dagper102014-id-1413779815.pdf

Secondary Source:
http://gain.fas.usda.gov/Recent%20GAIN%20Publications/New%20Regulation%20on%20Alcoholic%20Beverage%20Distribution%20%20_Jakarta_Indonesia_5-6-2014.pdf


Ministry of Trade regulation 06/M-DAG/PER/1/2015 (in Bahasa Indonesia) - second amendment
http://peraturan.bcperak.net/sites/default/files/peraturan/2015/06m-dagper12015.pdf

Ministry of Trade regulation 32/M-DAG/PER/5/2016 - third amendment
http://ditjenpp.kemenkumham.go.id/arsip/bn/2016/bn731-2016.pdf

Inception date: 11 Apr 2014 | Removal date: open ended
Still in force

Import-related non-tariff measure, nes

On 11 April 2014, the Indonesian Ministry of Trade issued regulation 20/M-DAG/PER/3/2014 concerning 'Controlling and Monitoring of Alcoholic Beverages' Supply, Distribution and Sale' based on the Presidential Regulation 74/2013.
The law stipulates three categories of alcoholic beverages depending on their alcoholic content: 0-5%, 5-21% and 21-55% (cf. Appendix of regulation 20/M-DAG/PER/3/2014 for more details).
Every importer of alcoholic beverages must be certified as a 'registered importer of alcoholic beverages' (IT-MB), as indicated in art. 5 of the regulation. In order to obtain the certificate, article 6 lists a number of requirements such as:

  • '(2) c. a photocopy of a business licence for alcoholic beverages (SIUP-MB) indicating that the company has experience as an alcoholic beverages distributor for at least three consecutive years (...),
  • f. a photocopy of contracts with at least 20 manufacturing companies from at least five different countries of at least 3000 cartons per brand and per year(...) 
  • h. a photocopy of letters of intent from alcoholic beverages distributors in at least 6 provinces. (...)
  • (3) the IT-MB lasts for 3 years and can be further extended'.

The Trade Ministry also assigns a quota for each year and import category by April 1 (art.7(6)). In addition, each holder of an IT-MB must receive an import permit from the Ministry and has to import at least 80% of the amount specified in the permit (art. 8 & 9).
Article 11 constitutes further trade barriers, as imports have to be conducted either through the ports of Medan, Tanjung Priok, Semarang, Surabaya, Manado, Makassar or any international airport (art. 11(1)).
Furthermore, the regulation specifies the forms of distribution of alcoholic beverages, including special trade business licenses for each of the three categories mentioned above (cf. art. 13-18). Retailers and sellers holding business licenses in the first category (i.e. alcoholic content of 0-5%) had 6 months from the day the regulation came into force to comply with the regulation (art. 53 of regulation 20/M-DAG/PER/3/2014). This was later postponed to 18 months for retailers and 12 months for sellers by article 53 of the amendment 72/M-DAG/PER/10/2014.
The provisions came into force on the day of issuance.

Updates

On 16 January 2015, the Ministry issued a second amendment 06/M-DAG/PER/1/2015, restricting the sale of beverages in the category A to supermarkets and hypermarkets (art. 14) - except for hotels, restaurants, and liquor stores. Previously, this was also allowed in minimarkets and "other retail stores".

On 11 May 2016, the initial regulation was adjusted for a third time with amendment 32/M-DAG/PER/5/2016. The amendment slightly simplified the process of reporting changes in the name or brand of the alcoholic beverage.

On 28 March 2018, the fourth amendment 47/2018 was announced by the Ministry (see Related State Acts). It scrapped the import allocation regime.

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AFFECTED PRODUCTS