Commercial Code Draft Bill Aims to Constrain Import Surge

Fitri Novia Heriani, Mahinda Arkyasa

In an effort to replace the outdated Commercial Code –a legislation heritage of the Dutch colony government– the Government is in the process of drafting a bill on trade. One of many agendas’ set in the Bill is to protect domestic market from the surge of imported goods.

Aria Bima, Deputy Chairman of Commission VI of the House of Representatives (House), who is involved in the drafting process, explained to hukumonline on Monday (21/1) that the bill will not prohibit free trade. Instead, it will improve domestic goods trade and apply stringent provisions on import.

He informed that under the bill, imported goods must comply with the Indonesian National Standards (SNI) or comply with horticultural products quarantine measures, if necessary.

Although there were concerns that the bill may contradict the World Trade Organization (WTO) trade regulations, Aria confirmed that the bill will not conflict with any WTO regulations or its principles.

Meanwhile, Mudrajad Kuncoro, economics professor at Universitas Gajah Mada, also reminded the Government about the non-discriminatory and national treatment principles of the WTO.

Explaining both principles, the professor stated that the Government may not act in a discriminatory way toward their trading partners and it must apply the same treatment to imported and domestic goods.

“If imported goods must comply with SNI, domestic goods must also comply with SNI,” Mudrajad said to hukumonline on Monday (21/1).

(jt/ds)