Morning Briefing: Indonesia to Simplify Regulations to Boost Exports

Coordinating Minister for Economic Affairs Darmin Nasution said Indonesia will Release New Policy to Boost Export - Photo by CMEA Office

JAKARTA (TheInsiderStories) — Good morning! As an effort to boost export, Indonesia will release a new instrument for short-term and medium to long-term, said senior minister yesterday (01/24). Some regulations will also be simplified, with the main aspect is export procedure.

Coordinating Minister for Economic Affairs Darmin Nasution said in a written statement, these policies to support export gain. While, Finance ministry’ director general for customs and excise Heru Pambudi mentioned that the decision will be poured into regulation with the most significant change on vehicles.

Recently, vehicle exporters must submit comprehensive documents before entering port. But with the new regulation, vehicles exported can enter the port prior documents submission. The goods can also be sent to ports little by little, so exporters can cut their inventory base in manufacture, transportation, and administration.

Not only that, Trade Minister Enggartiasto Lukita said his institution will revoke regulation about surveyor reports next week. These policy aims to get cost and time efficiency by slashing commodities that must include surveyor reports and other limited export restrictions.

Trade ministry through National Export Development Directorate encourages export competitiveness of design-based products. Cooperating with Japan Institute of Design Promotion (JDP), Trade Ministry will hold the third Good Design Indonesia event. Government also increased the product categorization from 6 in the previous events to 16 this year.

While, to maintain macroeconomic stability, Bank Indonesia issued refinement of regulations related to bank external debt management and other bank obligations in foreign currencies, stated in PBI No. 21/1/PBI/2019. The regulation will be implemented officially, starting in March. It aims to strengthen prudence principles on debt, according to official in a statement.

There are six main points in the latest regulation, such as refinement of the foreign debt definition and coverage, extension coverage of bank’s obligation includes risk participation transaction, and the central bank’ mechanism in accepting or declining request over foreign exchange.

Besides, the regulation also stated additional exception of short-term bank’ obligation component, the central bank’s monitoring, and refinement of sanctions.

Rupiah against US Dollar continued to strengthening to 14,141, as United States (US) shutdown entered its 33rd days. The country is also threatened to suffer terrifying economic growth, if the shutdown continues.

Advisor to President Donald Trump projected that the superpower’s economy may not grow at all in 2019’s first quarter. The shutdown has made around 800.000 federal workers furloughed.

While, the Jakarta Composite Index closed gaining 0.24 percent to 6,466.65. Some sectors moved consolidating. Meanwhile, Rp158.83 billion (US$11.26 million) foreign net buy has accumulated more than Rp10 trillion foreign inflow during weeks of 2019.

Moreover, average palm oil prices are set to climb this year, a Reuters poll showed, buoyed by slowing output-growth in top producer Indonesia and by robust demand for the commodity which is used to churn out products ranging from chocolate to biofuels.

Benchmark palm prices will average 2,375 ringgit ($574.09) a ton in 2019, up three percent from 2,308 ringgit last year. Growing demand for palm from biodiesel producers is expected to support prices this year, with the Indonesian and Malaysian governments pushing the use of biofuels.

Its also predicted, India reduced import taxes at the start of the year, though the rates are still higher than before an initial hike from last March.

May you have a profitable day!

US$1: Rp14,100

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia