Government Eases Import Restrictions to Alleviate Port Congestion

Jakarta, INTI – In response to the challenges and obstacles currently faced in the importation process, the Indonesian government has decided to revise the Ministry of Trade Regulation Number 36 of 2023 jo. 3 of 2024 jo. 7 of 2024 concerning Import Policies and Regulations. Additionally, a new Minister of Finance decree has been issued, re-establishing the List of Restricted and Prohibited Imports.

The tightening of import regulations and the addition of import licensing requirements, including Technical Considerations, have caused significant delays in the import licensing process. This has led to container congestion at several major ports, including Tanjung Priok Port. Currently, at least 17,304 containers are held at Tanjung Priok Port due to pending import documentation and unissued Import Approvals and Technical Considerations.

“With directives from the President, the issues with import licensing have been addressed by the issuance of Ministry of Trade Regulation 8 of 2024. Today, we expect the regulation to resolve the backlog of 17,000 containers,” stated Coordinating Minister for Economic Affairs Airlangga Hartarto during an inspection of the implementation of the import relaxation policy at Jakarta International Container Terminal, Tanjung Priok Port, Jakarta, on Saturday (May 18).

Key Points of the New Regulation

The Ministry of Trade Regulation Number 8 of 2024, effective from May 17, 2024, includes several key policies, such as the relaxation of import licensing for seven groups of goods previously subjected to tightened import restrictions. These goods include electronics, footwear, ready-made garments, accessories, cosmetics and household supplies, bags, and valves.

Furthermore, the relaxation policy has already led to the release of several commodity groups that have met the relaxed import licensing requirements stipulated in Regulation 8 of 2024. These commodities include steel products, textiles, bags, and electronics, imported by 10 companies and arrived at Tanjung Priok Port since May 10, 2024.

First Release of Commodities

Accompanied by Finance Minister Sri Mulyani Indrawati and Deputy Trade Minister Jerry Sambuaga, Minister Airlangga oversaw the release of five containers of steel products. "The Ministry of Finance Directorate General of Customs and Excise welcomes the change from Regulation 36/2024 to Regulation 8/2024, which simplifies the requirements for container release, reducing the requirements to only a Surveyor Report," stated Finance Minister Sri Mulyani Indrawati.

During a press briefing, Minister Airlangga explained that the released containers included four from PT Denso Indonesia, which met the Surveyor Report requirements of Regulation 8 of 2024, and one from PT Pandu Equator Prima, which automatically met the requirements due to its status as a Principal Customs Partner (MITA).

Urgent Call for Support

Minister Airlangga also urged related Ministries and Agencies to support the acceleration of resolving import licensing issues, such as speeding up the issuance of Import Approvals and the completion of Technical Considerations.

"I urge all Customs officers at the port, the Head of the Main Service Office, the Director of Industry Services at Sucofindo, Surveyor Indonesia, and JICT management to work continuously, including weekends and holidays, to clear the 17,000 containers until the backlog is resolved. The President has instructed that these goods be released immediately,” concluded Minister Airlangga.