Trade Ministry Assures Permissive Import between Indonesia and South Korea

Jakarta – The Indonesian Ministry of Trade ensures that it will facilitate the flow of raw materials and capital goods needed for investment development through Minister of Trade Regulation Number 8 of 2024.

This was conveyed by Deputy Minister of Trade, Jerry Sambuaga to provide solutions for the licensing process of industrial raw materials to the Minister of Trade, Investment and Energy (MOTIE) of South Korea, Ahn Duk-Geun.

“The relaxation stipulated in MOT Regulation Number 8 of 2024 is the elimination of technical consideration requirements for 7 commodities that previously required technical consideration from the Ministry of Industry,” Sambuaga said in a statement on Wednesday.

Sambuaga explained that based on INSW data dated May 21, 2024, prior to the implementation of MOT 8/2024, only 1,759 Technical Approvals were issued for 11 commodities totaling 3,210 applications. 

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Ketua Umum DPP Angkatan Muda Pembaharuan Indonesia (AMPI) Jerry Sambuaga

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• istimewa

Of the technical approvals issued, 1,616 applications were submitted to the Ministry of Trade, and 1,379 licenses were issued or 85.33 percent.

“This shows the Ministry of Trade's commitment to continue to facilitate the flow of raw materials and capital goods needed by the investment-generated industries,” the Deputy Minister said.

Specifically for steel, he explained that the number of applications for steel Pertek submitted to the Ministry of Industry was 2,030, and the Pertek that had been issued was 1,092 applications or 53.8 percent of the total applications. 

Meanwhile, import licenses can only be issued after Pertek from the technical ministry is fulfilled.

Based on INSW data, of the 1,045 applications for Import Approval (PI) submitted to the Ministry of Trade, 898 applications or 85.9 percent have been approved. 

“MOT Regulation Number 8 of 2024 is the commitment of the Government of Indonesia, especially the Ministry of Trade, in implementing the policy of accelerating the import licensing process for raw materials and capital goods,” he said.

On the same occasion, Minister Ahn Duk-Geun hoped that in the future the regulation could facilitate the flow of industrial raw materials from Korean companies investing in Indonesia.

As well as developing market access for the products of these investments that can be utilized by both countries.

As information, South Korea is the 7^th largest investor country in Indonesia, with total Foreign Direct Investment (FDI) reaching around US$2.5 billion in 2023.

This is an increase of more than US$200 million (8.7 percent) compared to 2022. Entering the fifth decade of bilateral partnership between Indonesia and South Korea, the total value of bilateral trade between the two countries reached US$20.8 billion in 2023

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Specifically for steel, he explained that the number of applications for steel Pertek submitted to the Ministry of Industry was 2,030, and the Pertek that had been issued was 1,092 applications or 53.8 percent of the total applications.