Provisions on New Institution in Draft Bill on Strategic Commodities Are Repealed

The Chairperson of the Legislative Body (“Baleg”) of Indonesia’s House of Representatives (“DPR RI”), Bob Hasan, has indicated the possibility that the proposal to establish a new institution in Draft Bill (“Draft Bill”) on Strategic Commodities may not be pursued.

“Yes, it is possible that Draft Bill on Strategic Commodities will not provide for a new institution,” said Bob to Hukumonline.

This possibility was reinforced after the Ministry of Agriculture and the Ministry of Trade expressed the view that the establishment of a new institution is unnecessary. Previously, the concept of a new body named the Strategic Commodities Agency had been proposed to manage the governance of downstream processing and the trade of strategic commodities.

Bob explained that the substance of the Draft Bill will continue to focus on the regulation of governance and trade of strategic commodities. “The Draft Bill on Strategic Commodities will set out regulation on governance and trade, with governance specifically directed towards the downstream processing process,” Bob clarified.

The Strategic Commodities Agency was previously included in the draft Bill on Strategic Commodities under the provisions of Article 56. The article stipulated that the agency would function as a platform for the development of strategic commodities and the strategic commodities processing industry for all stakeholders. The agency was designed to be under and accountable to the President.