Government Support

On March 31, 2020, the Ministry of Trade issued Trade Minister Regulation Number 34 of 2020 on the Second Amendment to Trade Minister Regulation Number 23 of 2020 (Trade Minister Regulation No. 23/2020) on the Temporary Export Ban for Antiseptic, Mask Raw Material, Personal Protective Equipment, and Masks (Trade Minister Regulation No. 34/2020).

The second amendment stipulates that the Minister of Trade can determine an exemption to the provisions in this regulation, carried out in coordination with the relevant ministries or non-ministerial government institutions. In order to obtain an exemption, the exporter must submit an application electronically to the Director General of Foreign Trade through http://inatrade.kemendag.go.id . This regulation has come into force on April 1, 2020, and is retroactively effective since March 18, 2020.

Through regulation No. 34/2020, the Indonesian government is anticipating the secured supply of such goods as many local industries have ramped up the production of face masks, sanitizers and PPEs. Sinar Mas Group, one of Indonesia’s largest conglomerates, is reportedly preparing to produce 1.8 million masks domestically. Minister of State-owned Enterprises Erick Thohir has pledged to have state-owned enterprises produce masks continuously to combat the COVID-19 epidemic. Meanwhile, Minister of Cooperatives and Micro-small-and-medium-sized Enterprises (MSMEs) Teten Masduki has urged MSMEs to produce PPEs to also help combat COVID-19.

Below is the list of goods banned from being exported as stipulated by Trade Minister Regulation No. 23/2020, which had already been previously amended by Trade Minister Regulation No. 31/2020 on the amendment to Trade Minister Regulation No. 23/2020 on the Temporary Ban for Antiseptic, Mask Raw Material, Personal Protective Equipment, and Masks:

Tariff Post Description of Goods A 22.07 Non-denatured ethyl alcohol with an alcohol content of 80% or more by volume; ethyl alcohol and other alcohols, denatured at any level. 2207.10.00 Non-denatured ethyl alcohol with an alcohol content of 80% or more by volume 2207.20 Ethyl alcohol and other alcohols, denatured at any level 2207.20.11 Ethyl alcohol with an alcohol content exceeds 99% by volume 2207.20.19 Etc. 2207.20.90 Etc. B 30.04 Medicine (not including goods of tariff post 30.02, 30.05 or 30.06) consist of mixed products or not for therapeutic or prophylactic purposes, prepared in certain doses (including in the form of a transdermal distribution system) or in the form or package for retail sale. 3004.90 Etc. Ex.3004.90.30 Antiseptic hand rub, hand sanitizer and the like which are alcohol based C 38.08 Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants and similar products, prepared in the form or package for retail sale or as preparations or goods (for example ribbons, wicks and candles processed with sulfur, and fly paper ). 3808.94 Disinfectant Ex.3808.94.10 Hand rub, hand sanitizer and the like contain a mixture of coal tar and alkali acids Ex.3808.94.20 Hand rub, hand sanitizer and the like in aerosol packaging Ex.3808.94.90 Hand rub, hand sanitizer and the like other than those containing a mixture of coal tar and alkali acids, and not in aerosol packaging D 56.03 Nonwovens, whether or not impregnated, coated, covered, laminated or not. Ex.56.03.11.00 Non-woven meltblown nonwoven fabric is made from artificial filaments weighing not more than 25 g / m2 Ex.56.03.91.00 Non-woven meltblown nonwoven fabric made from materials other than artificial filaments weighing not more than 25 g / m2 E 62.10 Garments, made from fabrics of tariff post 56.02, 56.03, 59.03, 59.06, or 59.07. 6210.10 Made from fabrics of tariff post 56.02, 56.03 Ex.6210.10.19 Medical protective clothing F 62.11 Track suits, ski suits and swimwear; other garment 6211.43 From man-made fibers: 6211.43.10 Surgical Wear. G 63.07 Other finished goods, including clothing patterns. 6307.90 Etc: 6307.90.40 Surgical mask. Ex.6307.90.90 Other masks of nonwoven material, besides surgical masks. The temporary ban against exporting these goods is valid until June 30, 2020. Exporters who violate the provisions will be subject to sanctions in accordance with the prevailing regulations. However, exporters obtaining a permission from the Minister of Trade are able to export the goods without breaking the law.