Export-Import Rules under the Strategic Commodities Draft Bill

The Ministry of Trade (“ Kemendag ”) has provided input on the discussion of the Draft Bill (“ RUU ”) on Strategic Commodities. Tommy Andana, Director General of Foreign Trade at Kemendag, emphasized that under the RUU, Kemendag would act as the regulator of export and import governance for commodities, including strategic commodities.

“In the Strategic Commodities RUU, regulations are set for the management of exports and imports,” Tommy stated in an interview with Hukumonline.

Furthermore, Tommy noted that the designation of strategic commodities should be based on criteria with clearly defined limits. Of the ten criteria currently outlined in the RUU, he believes the rules should be flexible, rather than rigid, to accommodate national needs and interests.

According to him, commodities with limited production should prioritize domestic needs and value-added development through downstreaming, without necessarily being classified as strategic commodities.

“The point is to align with the export value, whether high or low,” he emphasized.

In addition to criteria, Tommy also highlighted the need for regulations on pricing for strategic commodities. Currently, commodity prices are not set by Kemendag but are determined by business agreements between business actors. The government only establishes preferential pricing and trade controls to maintain price stability and domestic supply for key export products.