Mahakam Block - Photo by Special Task Force for Upstream Oil and Gas

JAKARTA (TheInsiderStories) – Indonesia regulated the Provisions of Petroleum, Natural Gas and Other Fuels export and import, in order to maintain the availability of the materials in the country. Yesterday, Trade Ministry has issued Minister of Trade Regulation Number 21 Year 2019 that have an important role in the national economy.

“This regulation has take effect on March 22,” explained Director General of Foreign Trade Oke Nurwan in a written statement (04/04).

Through this regulation, the ministry stipulates that certain types of petroleum, natural gas, and other fuels can only be exported by business entities and permanent establishments that carry out upstream oil and gas business activities and by business entities conducting business activities downstream of oil and gas. All of which have been registered as a registered exporter.

Nurwan explained, to get stipulation as a registered exporter, the company must submit a request electronically through the page http://inatrade.kemendag.go.id. Later, if approved, the stipulation as a registered exporter will be valid for three years from the date of issuance.

If there is a change in company data, the company is required to submit a data change request no later than 30 days after the date of data changes, he added.

Meanwhile, for import activities, several types of petroleum, natural gas, and other fuels can only be imported by business entities conducting upstream petroleum business activities and direct user.

In addition, in order to be able to carry out export-import activities, the company must also have an export agreement and import approval which can be obtained by submitting an application through the http://inatrade.kemendag.go.id page.

Especially for exports, verification or technical surveillance will be carried out at the loading port. After having export and import agreements, companies must submit reports of export or import realization electronically, whether realized or not realized, to the Minister of Trade through the Director-General.

“For companies that violate the regulations, they will be subjected to administrative sanctions in the form of written warnings until the suspension of the issuance of export and import agreements for a maximum of two years,” said Nurwan.

However, the provisions concerning the export and import of petroleum, natural gas, and other fuels are excluded from samples, goods for research purposes, and natural gas in the form of a gas with heading HS 711.21.10 and 2711.21.90 for which exports are channeled directly through pipes outside the customs area.

For exports of other fuels derived from crude palm oil and derivatives (biodiesel / fatty acid methyl Esther), with a methyl ester content of more than 96.5 percent-volume with the tariff heading number HS ex.3826.00.21, 3826.00.22, ex. 3826.00.90 is excluded from the provisions of verification or technical inquiry.

Whereas, for natural gas in the form of gas, with postal rates HS 2711.21.10 and 2711.21.90 those whose exports are channeled directly through pipes outside the customs area are excluded from the provisions export agreement and verification or technical surveillance of exports.

With the enactment of this regulation, the Regulation of the Minister of Trade Number 03 /M-DAG/PER/1/2015 concerning Provisions on the Export and Import of Petroleum, Natural Gas and Other Fuels, is revoked and declared invalid.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com

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