Imports - Regulated to Protect Consumers and to Promote Competition

The Minister of Trade has issued Regulation No. 44/M-DAG/PER/10/2008 within the framework of pre-empting any negative impacts from the ongoing financial crises that are afflicting the global economy. However, the Regulation is also designed to tighten import procedures and restrict the ports of entry for imports in order that the government can exert greater control over the import process. The other features of the Regulation are an intention to protect consumers and to facilitate healthy and sound business competition.

The Regulation requires that any one seeking to be an importer have the necessary licenses to do so. Those seeking to be appointed as a Exclusive Importer of Specific Products will need to submit an application that includes, among other documents, such as an Importer Identification Number; a Tax Payer Number, a Customs Identification Number, and an Import Plan.

The appointment will either be confirmed or rejected based on the application within seven working days.

There are three attachments to the Regulation that set out the import products covered, standard form Statement Letter on Recapitalization of Realized Imports, and the form for the Written Report on Import Realization.

There are five basic product categories that are subject to restrictions. These are:

-                 Electronics;

-                 Shoes;

-                 Children’s toys;

-                 Food and beverages; and

-                 Garments (clothes and some textiles).

The products may be imported through all international airports but only through the five specified ports of Tanjung Priok, Tanjung Emas, Tanjung Perak, Belawan, and Sukarno-Hatta (Makassar).

The Regulation does not come into force until 15 December 2008 and will remain in force, once it does, until 31 December 2010.