Unraveling Indonesia’s New Export Policies: An Insight into Minister of Trade Regulation 23/2023

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Unraveling Indonesia’s New Export Policies: An Insight into Minister of Trade Regulation 23/2023 Indonesia's ever-evolving trade landscape witnesses another significant milestone with the introduction of the Regulation of the Minister No. 23 of 2023. With the recent repeal of Regulation 19/2021, the trade diaspora finds itself navigating the labyrinth of Regulation 23/2023, which became effective from 17 July 2023. In this ARMA Update, we discuss the heart of this regulation as well as exploring its implications.

Export Requirements

Exporters must now be equipped with:¹

• Business Identification Numbers (NIB): A foundational identification parameter. However, it's notable that certain exporters might be exempted from this requirement.
• Export-related business licenses: This includes registered exporter certificates and/or export approvals. Specific exporters can secure more than one Approval, and these Approvals can cater to multiple export customs notifications.

Export Business License Exemptions

Historically, Regulation 19/2021 did allow for certain exemptions in securing export licenses:

For Non-Commercial Exports:

1. No requirement for NIB.
2. Exemption from securing export-related business licenses.
3. Waiving the need for additional supporting documents.
4. Absence of verification technical searches.

For Commercial Exports:

1. Exemption from obtaining export-related business licenses.
2. No need for other supporting documentation.
3. No verification and/or technical searches necessary.

However, these exemptions aren't arbitrary. They need to be evidenced through description letters issued by the Director-General via an application through the Indonesian National Single Window System (SINSW), are then relayed to the INATRADE system. ² In a pivotal change, Regulation 23/2023 stipulates that these description letters will be valid for one or more notification submissions. If a description letter covers multiple notifications, it must be accompanied by export realization control cards. These cards help track the exact number of exempted goods, ensuring complete transparency and traceability.

Export Windows for Mining Products and Processed Timber

Regulation 23/2023 also brings to light explicit export timelines for select mining products and timber. Items such as laterite concentrate, copper concentrate, lead concentrate, zinc concentrate, and anode slime may only be exported up to 31 May 2024. Beyond this period, exports are permissible only for: 1. Research and development. 2. Re-exportation. 3. Export of industrial products that either have scrap metal or use imported primary materials. 4. Processed Timber.

Discretionary Powers to the Minister

In situations where the directives are unclear or incomplete, or where there's administrative stagnation, the Minister of Trade is endowed with the discretion to address specific issues related to export policies, conforming to the prevailing legal norms.

Transition Arrangements

Existing permissions and certifications, like the Registered Exporter license and other related documents issued before these new regulations, will remain valid until their respective expiration dates. Similarly, previously issued timber legality assurance documents will be honored until the completion of their associated forestry industry exports. All provisions and documents that existed before these new regulations will still be in effect, as long as they do not conflict with the new directives.

Conclusion

Regulation 23/2023 signifies Indonesia's drive to refine and bring transparency to its export sector. By supplanting Regulation 19/2021, it ushers in more meticulous checks, streamlined processes, and clearer timelines, especially for strategic sectors like mining. These changes highlight the country's dedication to ensuring sustainable resource management, fortifying domestic industries, and fostering a transparent trade environment. For traders, understanding and adapting to these nuances is imperative. As the nation continues its trajectory of economic growth, such regulations, although intricate, pave the way for a more resilient, accountable, and sustainable trade ecosystem.

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1. Article 2 Regulation 23/2023↩

2. Article 20-24 Regulation 23/2023↩

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Table of Contents

1. Export Requirements
2. Export Business License Exemptions
3. Export Windows for Mining Products and Processed Timber
4. Discretionary Powers to the Minister
5. Transition Arrangements
6. Conclusion

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