Han Revanda Putra, Jakarta – Spokesperson for Indonesia's Industry Ministry Febri Hendri Antoni Arif suspected that the pile-up of 26,415 containers stuck at Tanjung Priok and Tanjung Perak Ports was caused by the relaxation of import document regulations stated in the Trade Minister's Regulation (Permendag) No. 3 of 2024.
"We believe the container backlog is due to the relaxed rules for changing the HS (Harmonized System) code in Permendag No. 3 of 2024," said Febri in a press conference at the Industry Ministry Office in South Jakarta on Wednesday, August 7, 2024.
Under Permendag No. 3 of 2024, Febri explained that importers are allowed to revise import documents after the containers arrive at the port. In the previous regulation, Permendag No. 36 of 2023, import documents must be finalized and ready before shipping. Incomplete documentation led to container re-exportation.
"We believe this has prompted importers to rush goods into Indonesia. They address paperwork later after arriving at the port," Febri said.
He further mentioned the letter from the Directorate General of Customs and Excise of the Finance Ministry to the Industry Ministry. In the letter, Director General of Customs and Excise, Askolani, affirmed that Customs is using the Board Economic Category (BEC) classification, which is based on the eight-digit HS code in the settlement document.
However, if the eight-digit HS code in the settlement document is missing, Customs will use the four-digit HS code in the manifest. "Maybe, many documents are missing them," he said.