Indonesia: Two New Implementation Dates for Regulation 82/2017

To the relief of many, the Director General of Foreign Trade, Oke Nurwan, has confirmed that the obligation under Regulation 82/2017 to use only vessels controlled by Indonesian companies for all coal or crude palm oil exports, as well as for rice and government procurement imports, has been postponed from 1 May 2018 to 2020.

The obligation to insure shipments with Indonesian companies introduced by Regulation 82/2017 has also been postponed, but by only three months from 1 May 2018 to 1 August 2018.

To enable exporters to choose their carriers and insurance providers, the Indonesian government hopes to encourage CIF (Cost, Insurance and Freight) contracts instead of FOB (Free On Board) contracts which prevail at present.

Amidst speculation that instead of boosting the Indonesian economy as intended, the Regulation would have the opposite effect, the announcement was made after a meeting between ministers and government officials on 3 April 2018.

Hopefully, the postponement will give the Indonesian Government time to produce guidelines to clarify the numerous questions which the regulation raises.

Information provided by Budd Indonesia

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