Ministry of Industry Finalizes Dispensation for Import of Reconditioned Production Equipment

The Ministry of Industry is finalizing a Draft Regulation on Procedures for the Issuance of Technical Considerations for the Import of Capital Goods in Used Condition for the Purpose of Dispensation for Group A and Group C ("Draft Regulation "). This regulation allows business actors to import used capital goods, which are used as production equipment, whether in ready-to-use, reconditioned, or remanufactured condition.

“As it develops, this Ministry of Industry regulation is being harmonized,” said Ignatius Warsito, Expert Staff to the Minister for Strengthening Domestic Industry Capabilities at the Ministry of Industry (Kemenperin), to Hukumonline.

This regulation regulates the procedures for applications, issuance, and evaluation of technical considerations as the basis for import approval, as well as the involvement of technical inspection agencies to ensure the economic and technical viability of imported goods, in accordance with Regulation of the Ministry of Industry No. 14/M-IND/PER/2/2016 of 2016 on Technical Criteria on Import of Used Capital Goods ("Regulation 14/2016").

The regulation also covers the procedures for the issuance of technical considerations for changes, supervision and reporting on import realization, and administrative sanctions for business actors and inspection agencies that do not comply with the provisions. Business actors must submit an application through the National Industry Information System (Sistem Informasi Industri Nasional - "SIINas") and complete the required documents, including technical inspection results and investment feasibility analyses.

“It should be issued in the near future,” he added.