The Indonesian government has issued Presidential Regulation (Perpres) number 32 of 2022 concerning Neraca Komoditas (NK), the country’s new trade licensing policy. NK aims to support simplification and transparency of licensing in the export and import sectors; and to provide accurate and comprehensive data as the basis for formulating export and import policies.
With the new policy, the government hopes to boost investments and employment; ensure the availability of consumer goods for the population and raw materials and/or auxiliary materials for industrial purposes; and ensure the interest of farmers, fishermen and micro and small business players of other commodities are also well-taken care of.
Currently, there are 5 essential commodities under the Neraca Komoditas and these include rice, meat, sugar, fish, salt.
Chairman of the Association of Indonesian Food and Beverage Businesses (Gapmmi) Adhi S Lukman said that with NK, the industry will be more flexible and efficient in conducting global transactions. Moreover, with the current uncertain global conditions, by holding an import permit/license, at any time the price is right, you can contract in advance, and this will be an alternative so that the price of raw materials is cheaper. With NK, there is also business certainty for the next one year. He hopes for more commodities to be added to NK, and suggested milk, corn and soybean to be added.
An Economist at the Center of Reform on Economics (CORE) Indonesia, Yusuf Rendy Manilet said the emergence of NK is the answer to one of the problems of export and import activities in Indonesia, namely the difference in data between government institutions. Yusuf hopes NK will result in more reliable data for the industry.
Meanwhile, Deputy Chairman of the Apindo Fisheries Committee, Hendra Sugandhi, said that one of the objectives of NK is to ensure the availability of raw materials and auxiliary materials for the national fishing industry. He hopes that fish supply can be met from domestic fish catches.
Hendra added that valid data and information are the key to the successful implementation of PP 32/2022. He suggested that production data (both fisheries and aquaculture) and national fish consumption figures should be verified and synchronised with the national gross tonnage capacity for fishing, cultivation land capacity, seed stocking data and national fish feed data. In addition, data on fish recall from export destination countries should also be taken into account in NK to ensure export data is unbiased.
According to a business spokesperson, if the NK is implemented successfully, it will cut one step out of the licensing process and reduce opportunities for corruption. It will also increase transparency and reduce corruption through more open data reporting. In addition, this will result in lesser red tapes as import and export will be allocated by the Ministry of Trade based on the NK, not by individual letters from the technical ministries. As an example, beef importers previously need to receive technical recommendation from the Ministry of Agriculture before being able to apply for permit. Both importers and exporters will now only need to rely on one portal for this.?
NK, if implemented properly, could offer massive improvement, trimming one less layer of bureaucracy to deal with, and also less risk of corruption cases of which many occur at the technical ministries level.