Changes to Trade Policy in Presidential Regulation 32/2022 on Neraca Komoditas

Abstract

Legalized on February 21 st 2022, Presidential Regulation No. 32/2022 on Neraca Komoditas is the implementing regulation of the Job Creation Law on trade. It regulates the use of and the procedure to enact Neraca Komoditas.The regulation provides a legal basis for the new Neraca Komoditas trade mechanism after the Government of Indonesia has promoted the idea in the past year (see Gupta, Pane, & Pasaribu, 2022 for early analysis on the Neraca Komoditas). The Neraca Komoditas will be rolled out for rice, salt, sugar, beef and fisheries products in 2022, while other goods that require export and import licensing will start to use Neraca Komoditas in 2023. This policy brief is written as a follow-up to CIPS' policy paper "The Advent of a New Trade Governance After the Omnibus LawNeraca Komoditas" that was published before the issuance of Presidential Regulation No. 32/2022.1 Trade of some strategic commodities such as rice and white crystal sugar is under strict control of the government and can only be traded by State-Owned Enterprises.

Hambatan dalam Mewujudkan Konsumsi Pangan yang Lebih Sehat Kasus Kebijakan Perdagangan dan Pertanian

“…Namun, studi yang dilakukan oleh CIPS menemukan bahwa terdapat sejumlah masalah substansial dalam sistem yang baru ini, seperti reliabilitas dan keakuratan data. Pasalnya, rapat antar kementerian masih dibutuhkan untuk menyocokkan data pasokan dan kebutuhan, dan tidak ada informasi terkait harga sebagai pedoman pengalokasian kuota (Gupta, 2022;Gupta et al, 2022). Neraca Komoditas masih menggunakan banyak komponen dari sistem lama dimana perizinan perdagangan didasarkan pada kekhawatiran tentang ketersediaan pangan dan hanya ada sedikit mekanisme untuk mengatasi fluktuasi harga.…”

Policy Barriers to a Healthier Diet: The Case of Trade and Agriculture

“…By referencing the supply (production) and demand (consumption) data, the commodity balance is supposed to eliminate the need for technical ministries to issue import and export recommendation letters, making quota allocation more objective and expediting the licensing process. However, CIPS studies found substantial issues may plague the new system, such as data reliability and accuracy, the fact that inter-ministerial meetings are still needed to reconcile supply and demand data, and a lack of price information to guide quota allocation (Gupta, 2022;Gupta et al, 2022). The commodity balance preserves much of the old system where trade licensing is guided by food availability concerns and few mechanisms exist to account for price fluctuations.…”