Mendag Proposes Criteria for Designating Strategic Commodities in the Draft Bill

The Ministry of Trade (“Kemendag”) has outlined several inputs on the designation of strategic commodities under the Draft Bill (“Draft Bill”) on Strategic Commodities. Minister of Trade Budi Santoso stated that the designation of commodities would be based on an export-oriented approach and objective criteria.

“The designation of strategic export and import commodities should be based on objective and measurable criteria and have national strategic importance,” said Budi.

According to him, the export and import commodities to be regulated under the Draft Bill should be designated objectively. Strategic export commodities should be determined based on their contribution to foreign exchange earnings, international competitiveness, strategic value to supply chains, and downstream processing potential. Meanwhile, a commodity should be designated as a strategic import based on domestic needs, including the need for raw materials or auxiliary materials for national industries that cannot yet be adequately met by domestic production.

Meanwhile, the regulation of export-oriented commodities should be structured proportionately, taking into account product characteristics, domestic supply and industrial demand, market structure, as well as Indonesia’s position in national and international trade. According to Budi, the regulatory framework should focus on clarifying trading arrangements, export mechanisms, business actor requirements, licensing, reporting, and supervision, while maintaining competitiveness and added value.