The Cost of Non-Tariff Measures on Food and Agriculture in Indonesia

The Advent of A New Trade Governance After The Omnibus Law: Neraca Komoditas

“…Indonesia has increased the scope of import licensing from 30 to over 40 product groups since 2013, which translates to 3,308 ten-digit Harmonized System (HS) lines 2 and 30.6% of all HS lines (WTO, 2020). The typical import licensing process involves technical ministries and the Ministry of Trade (Amanta, 2021;WTO, 2020). For example, importers of beef should get a recommendation letter from first the Ministry of Agriculture, then use the letter to apply for the import permit from the Ministry of Trade.…”

Perdagangan untuk Pemulihan Ekonomi: Kebijakan Impor untuk Mendukung Sektor Makanan dan Minuman Indonesia

“…Restriksi kuantitatif dijalankan dengan prosedur perizinan impor non-otomatis. Restriksi kuantitatif dan prosedur perizinan menciptakan potensi terbesar distorsi pasar dan menyebabkan tingginya tingkat proteksi untuk industri domestik (Amanta, 2021;Marks, 2015).…”

“…Persyaratan yang panjang menciptakan hambatan prosedural untuk mengimpor (International Trade Center, 2017;Amanta, 2021). Selain itu, bahkan setelah seluruh dokumen yang disyaratkan telah lengkap, penerbitan PI kerap mengalami keterlambatan.…”

Promoting Constructive Agriculture and Food Investment in ASEAN

“…The achievement of this goal has been hindered by protectionist policies that also discourage investment. ASEAN Member States continue to implement non-trade measures for staple food commodities in pursuit of self-sufficiency and other domestic policy goals (Amanta, 2021;Pasaribu, 2021). Several studies have argued that regional integration in trade in agricultural commodities can stimulate agricultural investment in ASEAN Member States (Kawai & Naknoi, 2015) and increase their participation in the global value chain (Verico, 2017).…”

“…The exclusion of staple commodities from trade openness expands the role of SOEs and limits the benefits investors could otherwise expect, limits access to local and global supply chains, and limits market and business opportunities. Holding this course could further raise domestic prices of staple commodities (Amanta, 2021) and raise the cost of regional integration to encourage investment. It is therefore crucial that AIFS-SPA FS take these challenges seriously.…”