Supply Chain Breakthrough for Small- and Medium-Scale Industries: Importing of Materials Outside the Commodity Balance Now Unlocked for Supply Centers

Back in 2021, the Minister of Industry (“Minister”) introduced Regulation No. 21 of 2021 (“Regulation 21/2021”) on Centers for the Supply of Imported Raw Materials and/or Auxiliary Materials to Small- and Medium-Scale Industries (Industri Kecil dan Industri Menengah – “IKM”). In essence, this framework outlined the mechanism that applies to raw material and/or auxiliary material (collectively referred to as “Materials”) supply centers (“Supply Centers”) during the provision and distribution of imported Materials to IKM.[1]