Indonesia revises import regulation amid supply chain concerns

Indonesia revises import rules: Indonesia is reviewing a regulation aimed at controlling imports of over 3,000 products, responding to worries from business groups about potential disruptions to domestic supply chains and exports, the country's trade minister announced on Wednesday.

The regulation, implemented late last year, sought to tighten monitoring for a range of imported goods, including food ingredients, electronic equipment, and chemicals, amid concerns about an influx of imports.

Under the current rules, importers must secure permits for various goods like footwear, textiles, and washing machines, requiring a technical recommendation from other government institutions.

Trade Minister Zulkifli Hasan stated, "Business players, associations, and stakeholders have reported difficulties in obtaining technical documents from related institutions."

Additionally, Indonesia's Coordinating Ministry of Economic Affairs revealed plans to suspend the requirement for technical documents to obtain permits, without specifying a timeline.

The Trade Ministry intends to provide a transition period for the new regulation once the revision is issued.

Business groups have criticized the current rules, implemented on March 10, for limiting access to essential raw materials.

In response to complaints and warnings of shortages, the trade ministry recently eased restrictions for aircraft spare parts and raw materials for the plastics industry. However, business groups are pushing for further relaxations.

The Indonesian Chamber of Commerce and Industry cautioned that improperly targeted restrictions could disrupt operations in export-oriented industries like automotive, mineral smelting, electronic manufacturing, and the food and beverage sector.

(with Reuters inputs)