Distribution of Goods Regulated

In order to address various matters relating to the distribution of goods throughout Indonesia, which are not sufficiently regulated under Law No. 7 of 2014 on Trade (“Trade Law”), the Minister of Trade recently issued Regulation No. 22/M-DAG/PER/3/2016 on General Provisions for the Distribution of Goods (“2016 Regulation”). [1] Previously, these matters were regulated under Minister of Industry and Trade Decree No. 23/MPP/Kep/1/1998 on Trade Institutions (“1998 Decree”).The 2016 Regulation concerns parties engaged in the distribution of goods which are both tradable and usable by consumers or businesses, specifically goods which are deemed “tangible or intangible, movable or immovable, consumable or non-consumable,” which find their way to end users via distribution chains. Such chains can either be “Direct” or “Indirect”. [2] Indirect DistributionIndirect distribution means that before reaching the end user, manufactured goods are transported via any of the following mechanisms: [3]