Permenperin No 21/2021 Totally Ensures National Industry Sustainability: GINSI

Indonesian National Importers’ Association (GINSI) appreciates and supports the enactment of Regulation of Minister of Industry – the Permenperin No 21/2021 on Centre of Raw Materials Supply and/or Import Auxiliary Materials for Small and Medium Industries (IKM).

The regulation is expected to ensure the domestic industry sustainability, said GINSI Head for Logistics and Transportation Erwin Taufan.

“This Permenperin (Regulation of Minister of Industry) emphasizes that the sustainability of the domestic industry must be maintained. And, to keep continuity of the production process and industrial development, both the central government and regional governments provide convenience to obtain raw materials or auxiliary materials,” Taufan said on Monday, September 6, 2021.

GINSI also appreciates the regulation as it allows importation of raw materials or auxiliary materials in case of unavailable domestic supply or lack of domestic supply, or the domestic supply does not meet the standard quality.

Even, according to Taufan, the regulation also regulates the existence of a Centre of Raw Materials or Auxiliary Materials, well-known as Bonded Logistic Centre (PLB), a legal business entity and domiciled in Indonesia which carries out activities in the supply of raw materials or auxiliary materials.

“There is evidence to say that the PLB has proved its key role in supporting the national industry sustainability, in addition to help national logistic efficiency and build up national commodity competitiveness as well,” he said.

Taufan said that the government and the Ministry of Industry should be able to socialize the policy to related business players, including importers and domestic SMEs.

The Permenperin No 21/2021 has been stipulated by the Minister of Industry Agus Gumiwang Kartasasmita on August 18, 2021, and has been promulgated on August 26, 2021 in accordance with applicable laws and regulations.

According to the regulation, the industry is any of economic activities that processes raw materials and/or utilizes industrial resources to produce goods having higher added value or benefits, including the service industry.

The Permenperin also defines the meaning of raw materials, saying raw materials are unfinished goods raw materials, semi-finished goods, or finished goods that can be processed into semi-finished goods or finished goods that have a higher economic value.

While auxiliary materials are materials that are used as a complement in the production process to produce products that function perfectly according to the expected product parameters.

In order to be designated as a Centre of Raw Materials or Auxiliary Materials that can do importation as referred to in Article 10, a provider must meet some criteria and requirements. Among others are: a provider must be a business entity that imports and distributes raw materials and/or auxiliary materials for IKM (small and medium industry), owns or controls a place, building, or storage area with an area of ​​at least 500 square meters in one location, and has at least five IKM served .

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