Ministry of Trade Agreed to Increase the Exports through the Relaxation and Empower the Domestic Markets

Ministry of Trade Agreed to Increase the Exports through the Relaxation and Empower the Domestic Markets

InfoSAWIT, JAKARTA – Minister of Trade, Agus Suparmanto emphasized that the ministry of trade is ready to simplify the regulation and export/import procedures to increase the exports and strengthen the domestic markets. He said that to deal with the difficult economy globally and the trade activity in Indonesia in the early of 2020, as same as what President Joko Widodo told in the opening work meeting of ministry of trade 2020, in the Istana Negara, Wednesday (4/3/2020).

He said that the issue of the trade balance deficit in Indonesia is the focus in our country while in the foreign countries, the challenges of the situation keep running, such as, the trade war between the United States of America and China which has not come to an end, the Brexit, and the spread of Covid – 19 that could massively impact to the economy nationally and internationally.

The work meeting of ministry of trade 2020 that President Joko Widodo inaugurated (4/3/2020) focused to strengthen the coordination and synergy to policy relaxation and export/import procedures to increase the export, the investment, and stabilize the economy in Indonesia. “Based on what President Joko Widodo told, the work meeting of ministry of trade in this year should focus to work actively and not normatively to make the simple breakthroughs to smooth the macro activities, encourage the exports and imports which are oriented to the fulfillment of export and industrial materials. The meeting should focus to the accomplishment of exports for there are demand, supply, and production disruptions,” he said in the meeting within the theme, “Akselerasi Peningkatan Ekspor dan Penguatan Pasar Dalam Negeri Menuju Indonesia Maju”, as in the official statement to InfoSAWIT recently.

The meeting was attended by about 450 participants from the first and second echelon officers in ministry of trade, the trade representatives aboard, the heads of agencies in trade, the associations, and the businessmen. He also mentioned that in the slow economic progress in the world, there should be no industry complaining to get the materials, such as, sugar, for the food and drink industries; and the salt for the pharmacy industries.

Besides focusing to the increasing export acceleration, it needs to accelerate the imports, namely the materials which are export oriented and the industries. The complicated and long procedures and policies should be cut off to maintain the production running well. “The nowadays economy, namely because of the Covid-19 should be seen differently. The import relaxation, both tariff and non-tariff is needed because the demand, supply, and the production in many countries in the world are disturbed. There should be no procedures postponing the export or the import,” he said.

Minister Agus also emphasized to monitor the progress and the challenges of the trade in the world to take the profitable chance for Indonesia. Besides the import relaxation policy, the export policy would be supported to supply the needs for the other countries which were supplied from China.

To realize the prior programs of the president and the vice president in 2020-2024, ministry of trade has arranged some strategies. The first, in the economic transformation, ministry of trade would maintain the trade balance by expanding the export access to the potential countries and maintain the main export ones.

The market access expansion would be done by, such as, expanding the ratification and implementation of the international trade negotiation, and the review of the finished trade agreement; optimizing the FTA/CEPA/PTA; increasing the advantage of surat keterangan asal (SKA); strengthening the trade mission and promotion; increasing the product exports which have additional values and the trade services; strengthening the diversification of the export countries and the import; accomplishing the trade barriers; maintaining and strengthening the domestic markets by optimizing the trade security instruments. Besides ministry of trade would encourage the easiness to do business in the special economic zone, and free trade zone; increase the roles of the domestic products and electronic commerce; increase the competitiveness in the exchange or perdagangan berjangka komoditi (PBK), and pasar lelang komoditas (PLK), the sistem resi gudang (SRG); and support to arrange the Cipta Kerja draft.

In the transformation of economy, ministry of would control the imports more selectively. This is done by focusing to the material imports to strengthen the industries, the exports, and the investment; strengthen the import regulation by replacing the import of monitoring prohibition and restriction from the border to the post border; give easiness of material access from the import countries to the medium and small industries; and increase the advantage of Pusat Logistik Berikat (PLB).

Ministry of trade would maintain the inflation based on the target. This is done by maintaining the price stabilization and the supply of daily needs. It is important too heading to the religious days nationally. The other things to do are to strengthen the regulation of minister of trade, such as, which regulates the referential price, the highest referential price, the lists of daily need distributors, the management and the development of warehouses, the monitoring and supervision.

“Ministry of trade would create the capable consumers and responsible businessmen, such as, by increasing the education of consumers’ rights and the capacity of the businessmen in the commerce, quality, measurement, the supervision and the law enforcement to the goods, services, and the businessmen,” he said.

In the human resource development of trade, ministry of trade would increase the capacity of the micro, small, and medium businessmen (MSMB) by making the export training for 3.432 MSMB and giving the export development to 125 MSMB within the target, there would be 38 exporters per year. The other things to do are to strengthen the Indonesia Design Development Center (IDDC), Good Design Indonesia (GDI), and Designer Dispatch Services (DDS) programs for the exporters in Indonesia and MSMB.

Ministry of trade would train the traders for the electronic commerce; educate the exporters to MSMB through the FTA centers, increase the human resource capacity in metrology; train the traditional market management for 300 managers in Indonesia and do the sekolah pasar for 600 sellers in the traditional markets.

Ministry of trade would simplify the regulations of export, import, the procedures and the instruments of export and import prohibition and restriction; perfect the export and import license system and the online trade facilities’ and would publish the regulation of minister of trade about the implementation of government’s regulation No. 80 about the electronic trade.

To simplify the strategic bureaucracy, the first, it would strengthen the license system by developing the export import license digital signature which gets the certificate from the cyber and code agency; and the sistem informasi perizinan terpadu (SIPT) in the domestic trade. The second, the reformation of the trade representative agency in the foreign countries to develop the non – oil and gas exports; the third, the restructure of functional officers in 2020.

This would be done by making better public communication and information about the achievement and the work of ministry of trade, and the better coordination and the synergy.

He also told that to increase the market access to strengthen the exports and investment, his targeted to accomplish 11 international trade agreements that in 2020 are in negotiation process still; do the trade promotion in the domestic and abroad; strengthen the trade mission which covers the business forum, business matching, and business dialogue to the export countries.

Then his side would simplify the import control regulation and increase the export. Ministry of trade would accomplish to simplify it through Regulation of Minister of Trade No. 96 / 2019 about the Export of Mining Products from the Purification and Process Result which substitutes the Regulation of Minister of Trade No. 01 / 2017 about the Export Regulation on the Mining Products from the Purification and Process Result.

Besides ministry of trade would review the process of nine regulations of minister of trade about the export and imports which are about to publish, such as, the forestry export industries, swift nest, and tin. The import policy would cover the phone products, and computers, combined steel and its derivatives, the material of plastic, sheets of glass, sugar, and horticulture.

“To follow up what President Joko Widodo told us, ministry of trade would advantage the work meeting of ministry of trade 2020 as best as we could because it is the right moment to make the innovation or breakthrough to simplify the material import policy; accelerate the increasing exports, and strengthen the domestic markets,” he said. (T2)


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