Presidential Regulation 71/2020 Regulates Procedures for Approval of International Trade Agreements
Date 1 Juli 2020
President Joko “Jokowi” Widodo, on 22 June, has signed the Presidential Regulation Number 71 of 2020 on Procedures for Approval of International Trade Agreements. (Link: https://jdih.setkab.go.id/PUUdoc/176146/Perpres_Nomor_71_Tahun_2020.pdf)
It is expected that the Regulation can help to provide direction and legal certainty in the approval process by the House of Representatives (DPR) on the International Trade Agreement.
“International Trade Agreements means agreements in certain forms and names, regulated in international law that are made by means of a written instrument and give rise to rights and obligations in the field of public law to improve market access as well as in order to protect and secure national interests,” Article 1 paragraph (1) of the Regulation reads.
International Trade Agreements submitted to the DPR, as referred to in Article 1 Paragraph (1), include International Trade Agreements signed by: a. President; b. Vice President; c. the minister who held government affairs in the foreign sector; or d. minister or institution leader.
Submission of International Trade Agreements, as referred to in the Regulation, shall be accompanied by documents: a. text of consideration for approval of International Trade Agreements; b. a certified true copy of the International Trade Agreement; and c. translation of the International Trade Agreement, in the case that Indonesian is not used in the text of the agreement.
“International Trade Agreements submitted by the President as referred to in Article 2 paragraph (1) shall be discussed by the DPR to decide whether or not DPR approval is needed,” Article 3 paragraph (1) reads.
The decision whether or not the approval by the DPR needed for the International Trade Agreement submitted by the President, as referred to in the Presidential Regulation, shall be made no later than 60 (sixty) working days during the session with the following conditions: a. in the event that an International Trade Agreement has broad and fundamental consequences for the life of the people which is related to the financial burden of the state and/or requires changes or formation of a Law, its ratification shall be carried out by means of a Law; and b. in the event that an International Trade Agreement does not have an impact as referred to in letter a, the ratification shall be carried out by means of a Presidential Regulation.
“In the case that the discussion on International Trade Agreements as referred to in Article 3 paragraph (1) is conducted with the Government, the Proponent shall prepare documents in the form of: a. strength, weakness, opportunity, and threat analysis, or other analysis; and b. prognosis,” Article 4 paragraph (1) reads.
In a condition that the DPR makes a decision to approve the ratification of the International Trade Agreement, the Proponent shall draft the Draft Law or the Draft Presidential Regulation and the required documents in accordance with statutory provisions.
In accordance with Article 6 paragraph (1), in the condition that the DPR does not make a decision within a maximum period of 60 (sixty) working days as referred to in Article 3 paragraph (2), the Government may decide whether or not the approval of the DPR is necessary.
“Based on the President’s approval as referred to in Article 6 paragraph (4), the Proponent shall prepare a Draft Law or Draft Presidential Regulation and required documents in accordance with statutory provisions,” reads Article 7 paragraph (1).
In the event that a Presidential Regulation on a Ratification of an International Trade Agreement has been established, in accordance with Article 8, the Government through the ministry that carries out government affairs in the field of state secretariat shall submit a Presidential Regulation on Ratification of an International Trade Agreement to the DPR.
This Presidential Regulation takes effect oshall apply as of the date of its promulgation, reads Article 9 of this Presidential Regulation, which was promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 23 June 2020. (EN)
Translated by: Fairuzzamani Inayatillah
Reviewed by: Yuyu Mulyani