Indonesia Legal Update: Trade Information System

Published 04 February 2020 by Hutabarat Halim & Rekan Lawyers

The government of the Republic of Indonesia has recently enacted Government Regulation Number 5 of Year 2020 on Trade Information System (“GR No.5/2020”) dated 20 January 2020. This regulation is an implementation to the Law Number 7 Year 2014 on Trade.

The regulation is issued with the purpose to create Trade Information System which may support the duties of the central and regional government to provide accurate trade data and/or information and improve the service of the government trade areas.

The Ministry of Trade, governor and mayor/head of regional government is obliged to establish Trade Information System which is integrated with the information system developed by the other ministries or non-ministries government agencies. This data will be publicly available, unless otherwise determined by the Ministry of Trade.

Indonesian business actor who has offshore office and conducts its trading business in Indonesia must provide its trade data and/or information to the Ministry of Trade, which among other consist of the followings: (a) distribution of goods and service, (b) trade facility, (c) basic necessities and important goods, (d) business actors, (e) cross border and cross island trading activities, (f) trade facilities including promotion and incentives, (g) market access and export products, (h) cooperation on export development, (i) trade promotion, (j) trade training, (k) consumer protection and empowerment, (l) standardization and quality control, (m) monitoring of circulation of goods and service, (n) monitoring of trade activities, (o) metrology, (p) commodity future trading, (q) the use of domestic product, (r) trade service, (s) international trading negotiation, (t) export-import trading, (u) e-commerce, (v) trading protection, (w) empowerment of cooperatives, micro, small and medium enterprise, (x) regional trade potential, (y) business competition, (z) trading control, (aa) commodity auction market, (ab) warehouse receipt, and (ac) other data and information relation to domestic and foreign trade.

Business actors will be deemed to have complied with the requirement to submit the trade data to the Ministry of Trade if such data has been submitted to the other ministries, government agencies, regional government, including custom and excise, Bank Indonesia, Financial Service Authority, Central Statistic  Bureau, and other agencies as determined by the laws and regulations.

Non-compliance to such requirement may cause the business actors to be imposed with the following sanctions: (a) warning letter, (b) recommendation letter to temporary suspend its trading activities will be issued to the government agency who issue the trade license; and/or (c) other sanction in accordance with the prevailing laws and regulations.

The Ministry of Trade will monitor the implementation of Regional Trade Information System at least once every year.

The government is instructed to establish the National Information System within the latest of 2 years since this regulation is enacted.

Implementation regulation to this GR No.5/2020 will be further issued by the Ministry of Trade to regulate details of the gathering, processing, submission, management, and circulation of trade data and/or information.

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For further information please contact Ms. Rosna Chung at rosna.chung@hhrlawyers.com