Presidential Regulation 58/2020 Regulates Import Licensing Arrangement and Simplification

Export Procedure. (Source: Ministry of Trade)

President Joko “Jokowi” Widodo, on 8 April, has signed the Presidential Regulation Number 58 of 2020 on Import Licensing Arrangement and Simplification. (Link: https://jdih.setkab.go.id/PUUdoc/176099/Perpres_Nomor_58_Tahun_2020.PDF)

It is expected that the Regulation can help to control the availability and affordability of goods as well as to maintain the continuity of industrial production process that requires raw materials and/or auxiliary materials.

The arrangement and simplification can be implemented to meet the needs of, as follows: a. Staple goods and food; b. Government food reserves; c. Raw and auxiliary materials; d. Goods and raw materials for disaster mitigation or handling; and/or e. Other needs set by the government.

The import licensing arrangement and simplification, according to the Regulation, shall pay attention to the availability, production, and prices of goods as well as national interests.

Types of import licensing, it reads, can be in the form of:  a. approval; b. registration; c. determination; and/or d. acknowledgment.

Types of requirements for import licensing, as referred to in the Regulation, shall include: a. permit;  b. approval or approval letter; c. verification letter; d. recommendation; e. technical considerations; f. determination of the adequacy of consumption needs, staple food production, and government reserves; and/or g. other types of import licensing requirements in accordance with the provisions stipulated in the laws of relevant sectors.

“Provision of requirements for import licensing as referred to in Article 3 shall be granted by the Minister/head in charge of sectors related to imported products/goods, in written form,” Article 4 reads.

The granting of requirements for import licensing, as referred to in this Regulation, must comply with technical requirements in accordance with the provisions stipulated in the law of relevant sectors.

“State-Owned Enterprises can be assigned to carry out the importation of products/goods to meet the needs referred to in article 1 paragraph (1),” Article 6 paragraph (1) reads.

The Minister who carries out government affairs in trade shall issue import licenses based on the provision of requirements for import licensing as referred to in the Regulation.

“Imported products/goods to meet the needs referred to in Article 1,can be granted tax, customs, and/or excise facilities in accordance with laws and regulations,” Article 8 paragraph (1) reads.

The requirements for import licensing that have been granted are based on the decision of the coordination meeting before this Presidential Regulation comes into force, followed by the issuance of import licenses in accordance with the provisions of this Presidential Regulation.

At the time of this Regulation comes into force, according to Article 10,  all provisions of the laws and regulations governing the granting of requirements for import licensing remain in effect as long as they do not conflict with the provisions in this Regulation, or are not specifically regulated in this Regulation.

This Presidential Regulation takes effect on the date of its promulgation, reads Article 11 of this Presidential Regulation Number 58 of 2020, which was promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 14 April 2020. (EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: Lulu Wuliarti