The Government will immediately set a transition period for changes to Regulation 36/2023 of the Minister of Trade

The implementation of the transitional period for changes to the Ministry of Commerce Regulation no. 36/2023 in conjunction with n. 03/2024 will be regulated so as not to cause obstacles and problems

Jakarta (MidLand) – The Government will immediately arrange a transition period for changes to the Trade Minister’s Regulation (Permendag) number 36/2023 together with number 03/2024.

The government is currently in the process of reviewing the Ministry of Trade Regulation which regulates goods shipped by Indonesian migrant workers (SMEs).

“The transitional period for changes to the Ministry of Commerce Regulation No. 36/2023 together with No. 03/2024 will be regulated in such a way as not to cause obstacles and problems in implementation on the field,” said the spokesperson of the coordinating Ministry of Economic Affairs. Haryo Limanseto in Jakarta, Tuesday.

Regarding the accommodation of goods shipped by PMI, the Coordinating Ministry for Economic Affairs of the Republic of Indonesia held a limited coordination meeting at the ministerial level (Rakortas) inviting all relevant ministries/institutions (K/L).

The meeting was held to evaluate the implementation of the regulation of the Minister of Commerce number 36/2023 in conjunction with number 03/2024.

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The Rakorta led to four decisions.

The first decision, relating to goods delivered by PMI, agreed that goods delivered by PMI are “goods belonging to PMI sent by PMI working abroad and not for commercial purposes”, therefore they do not need to be regulated in the Ministry regulation of Import Trade Policies and Regulations (Permendag 36/ 2023 jo. 3/2024).

The legislation on the import of goods shipped by PMI is based on the provisions of the Decree of the Minister of Finance 141/2023 relating to the provisions for the import of PMI goods, the implementation of which is carried out by the Customs and Excise Office (DJBC) .

The government will also immediately make changes to Regulation 36/2023 jo of the Minister of Trade. 3/2024, in particular by issuing from the Ministry of Commerce the Regulation: Annex III “Importation of goods delivered by Indonesian migrant workers (SMEs)” which regulates the Type/Group of goods and limits on the quantity of goods for each shipment of goods.

In addition to this, PMI’s limits on goods sent are respected in accordance with PMK 141/2023, including the fact that PMI can send goods belonging to PMI working abroad and not for commercial purposes.

“Provisions limiting the type and quantity of goods do not apply, but there are restrictions on the value of goods which receive exemption from import duties, are not subject to VAT, PPn BM and PPh article 22 on imports”, Haryo explained.

He explained that SME shipments benefit from import duty exemption with a customs value of US$500 per shipment, a maximum of three shipments per year for registered SMEs or a maximum of US$1,500 per year.

If there is excess value over the item in question, the excess value will be treated as a normal shipment (non-PMI) and subject to a 7.5% import duty in accordance with PMK 141/2023.

Then the second decision, in addition to the goods shipped by PMI, was also agreed on the regulation of personal goods transported by passengers which would also be excluded from the rules of the Regulation of the Minister of Commerce no. 36/2023 Thu. NO. 03/2024 and is fully regulated in the PMK.

The third decision, relating to the issuance of Technical Considerations (Pertek) for various raw materials, agreed to be postponed considering the availability of regulations and systems in the relevant Ministries/Institutions.

In addition to this, Haryo continued, it was also agreed to reinstate the provisions of the Trade Minister’s Regulation No. 36/2023 Thu. NO. 03/2024 to facilitate imports in accordance with the provisions of the Regulation of the Minister of Commerce n. 20/2021 Thu. NO. 25/2022.

The fourth decision regulates the implementation of the transitional period for changes to the Regulation of the Minister of Commerce no. 36/2023 Thu. NO. 03/2024.

“Further discussions and agreements regarding the amendments to the Regulation of the Minister of Trade 36/2023 jo. 3/2024, will be immediately discussed in a technical coordination meeting involving all relevant ministries/institutions and will be coordinated by the Coordinating Minister of Economy, ” he concluded.

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Reporter: Bayu Saputra
Editor: And Salim
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