The Minister of Trade Regulation (Permendag) No.36/2023 regarding Import Policies and Regulations has faced harsh criticism from various sectors of Indonesian society. After rescinding the rule and making revisions of Indonesian import regulations, the Ministry of Trade (Kemendag) has finalized the regulation as Permendag Number 7 of 2024, effective today (4/30/24). There are several key points that need to be considered. What are they? Let’s find out in the following article.
This revision has not only drawn attention from business players but also caught the interest of the general public regarding how the new import policy will affect the national economy.
Previously, the government withdrew regulations restricting the baggage of passengers from abroad in Minister of Trade Regulation (Permendag) No. 36/2023 after facing a flood of criticism from the public.
The regulation concerning the import of personal baggage of passengers from abroad will now be governed by Minister of Finance Regulation (PMK) No.203/2017 concerning Provisions for the Export and Import of Goods Carried by Passengers and Transport Crew Members.
As a result, the import of personal baggage from abroad will be exempted from import licensing requirements. Additionally, personal baggage from abroad will not be restricted in terms of type and quantity and can be imported in new or used condition.
However, the exemption of import permits for passengers’ baggage from abroad applies only to personal items and not for resale within the country.
When implemented since March 10, 2024, the provisions for passengers’ baggage from abroad in Permendag No. 36/2023 garnered much protest from the public. In that regulation, besides limiting the value of passengers’ baggage, the government also restricted the types and quantities of items brought from abroad to Indonesia.
Some of the previously applied restrictions on passengers’ baggage included mobile phones, handheld computers, and tablets, with a maximum of 2 units per passenger within 1 year of arrival.
Moreover, cosmetics and household health supplies, up to 20 pieces per passenger, footwear up to 2 pairs per passenger, electronics up to 5 units with a maximum value of FOB US$1,500 per passenger, and other finished textile products up to 5 pieces per passenger.
The Government Revises Indonesian Import Regulations
Minister of Trade (Mendag) Zulkifli Hasan revealed that he has revised Minister of Trade Regulation No. 36 of 2023 concerning Import Policies and Regulations. Zulhas stated that the new regulation, now Permendag No. 7 of 2024, modifies several points.
Regarding the import of goods sent by Indonesian Migrant Workers (PMI), personal imports, and the evaluation of import restriction regulations (lartas) requiring technical recommendations from ministries and institutions.
“So, there is no limit on the quantity. This regulation has been signed by me yesterday. So, Ministerial Regulation 36 has been revised,” Zulhas said in Pasar Palmerah, Central Jakarta, on Tuesday (4/30/2024).
With the implementation of Permendag No.7/2024, there are several changes, including the removal of restrictions on the types and quantities of goods sent by Indonesian Migrant Workers (PMI) in Permendag No.36/2024. The regulation of PMI shipments will be governed by the Minister of Finance.
For PMI shipments, exemption from import duties is granted with a customs value of US$500 per shipment, up to three shipments per year, or US$1,500 for registered PMI. However, Zulhas mentioned that PMI shipments will be subject to a 7% import duty if there is an excess value of the intended goods.
Restrictions on the Quantity of Baggage Lifted
Furthermore, through this regulation, the government also lifted restrictions on the quantity of passenger baggage on aircraft for several commodities. However, restrictions still apply to electronic devices such as mobile phones and computers.
Previously, the government limited passengers’ baggage, including footwear up to 2 pairs per passenger, bags 2 pieces per passenger, and other finished textile products 5 pieces per passenger.
“You want to buy shoes, yesterday [restricted] two, now want two, want three as long as you pay taxes, it has returned in accordance with Ministerial Regulation No. 25/2022,” he concluded.
Zulhas hopes that through Permendag No.7/2024, there will be no more obstacles in carrying out the import of PMI shipments and industrial raw material imports.
Director General of Foreign Trade at the Ministry of Trade, Budi Santoso, previously revealed that they officially removed several commodities from the lartas regulations. For example, premix fortifiers for additional wheat flour are officially removed from the lartas regulations.
Indonesian Import Regulations Are More Optimal
The revision of Permendag No.36/2023 regarding Import Policies and Regulations reflects the commitment of the Ministry of Trade in optimizing the role of the trade sector as one of the main pillars in building a robust and sustainable economy. This step, besides being a form of government concern in listening to public aspirations, is part of a broader strategy in facing global challenges and strengthening Indonesia’s position in the international trade arena.
20% off today. Whatsapp us!