Head of Import - Export Procedures Working Group
Mr. Rachmat Hidayat
Government Relation Director,
Danone Aqua (Tirta Investama, PT)
Deputy Head of Import - Export Procedures Working Group
Ms. Prita Hapsari
Cutoms Indirect Tax Manager,
First established as a way for the European private sector to give input to the National Single Window implementation process, the Import – Export procedures working group has now developed in to a major contributor to all issues related to import procedures. The obvious impact these issues have on many EuroCham members has made it a very relevant forum for member companies in a wide range of sectors.
The group meets regularly with the Government to discuss and resolve technical issues relating to the Indonesian national single window implementation as well as other overarching issues related to import procedures. Each meeting aims to address issues to a specific Government Agency present, in order to foster dialogue and being able to resolve pressing issues rapidly. Government Agencies participating in the meetings include: Customs, BPOM, Ministry of Trade, Ministry of Industry and Quarantine. Thanks to the close cooperation with the Coordinating Ministry of Economic Affairs in the group a number of technical issues affecting the EuroCham members have been resolved during the course of the year.
The group has the aim to make advancements toward better trade relations between Indonesia and EU focusing on freer trade, with transparent rules. This primarily focuses on eradication of non-tariff and technical barriers to trade, but also harmonization of standards, improvement of customs procedures and other requirements that hamper the growth and increase the cost of trade.
Indonesia has been a low-tariff country by developing country standards and has been rather successfully implementing its tariff liberalization program, but since the global financial crisis, new NTBs have emerged. Removing barriers to trade will enhance economic integration and support economic growth in Indonesia. However, a lack of consistency and a single authority over trade policies has contributed to this proliferation of NTBs. While the Ministry of Finance sets tariffs, NTBs are under the authority of line ministries without consistent co-ordination or consideration of their economy-wide impact. Therefore it is of utmost importance for the group to have a good overview of the different policies emerging and working closely together with the Coordinating Ministry for Economic Affairs to have a clear overview of the policies at hand.
The working group strongly opposes the prevalent usage of NTBs as a means to protect local business interests, especially in sectors where Indonesia does not have a competitive advantage, as these measures only creates a rent seeking economy, with higher prices for the end consumer. The best benefit for the country would instead be openness to trade with clear registration and pre-inspection procedures in line with international best practice. Even though notifications of new trade restricting regulations have improved during the last year, there are often new policies emerging without any warning or dialogue with the industry. Indonesia could be better be in line with international agreements, including WTO with regards to NTBs similar measures.
Thanks to the close cooperation with the Coordinating Ministry of Economic Affairs in the group a number of technical issues affecting the EuroCham members have been resolved during the course of the year.
To download EuroCham's Working Group Brochure, please click here.