Background

On 11 June 2019, the Government of the Republic of Indonesia has issued a Regulation of Minister of Trade, Number 45 of 2019 on the Prohibited Export Goods (“MoT Regulation”). This regulation is issued as implementing regulationof Article 51 paragraph (3) of Law Number 7 of 2014 on Trade (“Law of Trade”), that requires regulation of minister of trade to stipulate the prohibited export goods. This MoT Regulation is effective 30 days after it was promulgated (on 21 June 2019), namely on 21 July 2019.

Purpose and Objective

The stipulation of prohibited export goods aims to protect national security or the public interest, including social, culture and society moral, to protect the right of intellectual property and/or to protect the health and safety of human, animal, fish, plant and the environment.

Prohibited Export Goods

Based on this MoT Regulation, the prohibited export goods are divided into 4 (four) sectors, namely agriculture, forestry, mining, and cultural conservation.
The following are several samples of the prohibited export goods from each sector as stipulated in the MoT Regulation:

  1. The prohibited export goods in the agriculture sector are natural rubber in other forms beside smoked sheets, such as air-dried sheets, crepe latex, and sole crepe;
  2. The prohibited export goods in the forestry sector, namely conifer and bearing tree (cross-tie) of railroad or tram from wood;
  3. The prohibited export goods in the mining sector are silica sand and quartz sand, mullite, and topsoil (including to topsoil land and humus);
  4. The prohibited export goods in the cultural conservation sector are collection and collector goods for the zoology interest, botany, mineralogy, anatomy, history, archaeology, palaeontology, ethnography or numismatics.
Read Also  Shareholder Register and Special Register

The stipulation of sanction for the exporter who carries out the export activity of the prohibited export goods is governed in the Law of Trade. The sanction is in the form of criminal sanctions, namely imprisonment of a maximum of 5 (five) years and/or a fine of at most Rp. 5,000,000,000 (five billion Rupiah).

Kristina Kristioni Keintjem