Beneficial Agreement for Migrant Workers: Minister of Trade Successfully Lobbies Stakeholders

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Jakarta, April 17, 2024 – In response to widespread public dissatisfaction and protests, the Ministry of Trade has announced the revocation of Regulation of the Minister of Trade (Permendag) Number 36 Year 2023 on Import Policy and Control. The decision, revealed by Minister of Trade Zulkifli Hasan in Jakarta yesterday, signifies a significant policy shift after concerns were raised over the complexity and potential adverse effects of the regulation, which came into effect in March 2024.

The contentious Permendag 36 aimed to overhaul import policies by transitioning import oversight from post-border to border control, while also introducing measures to facilitate imports for Indonesian Migrant Workers (PMI). However, its implementation faced vehement opposition from various quarters, including businesses and consumers, who feared its intricate provisions could hinder trade and inflate costs.

Minister Zulkifli Hasan affirmed, “The decision is that the spirit of Permendag 36 will return to Permendag 25/2022,” signaling a return to a regulatory framework perceived to be more conducive to trade and economic stability.

The revocation of Permendag 36 underscores the government’s commitment to fostering a balanced regulatory environment that caters to both the imperative of economic growth and the legitimate concerns of stakeholders. This move reflects a responsive approach aimed at maintaining a conducive business climate while safeguarding the interests of all parties involved.