TRADE, CUSTOMS

AND LOGISTIC
TRENDS, ISSUES & MORE
RECENT EXPERIENCES INFORMATION:
+62815-911-0720
Riza Buditomo - Partner
riza.buditomo@aymp.law
Muhammad Ramzi – Associate
ramzi@aymp.law
+62856-3212-629

PART 2: POST-BORDER AUDIT BY MOT

I. Brief
In 2020, the Ministry of Trade (MOT) unveiled a new
post-border import regulation, MOT Regulation No.
51 of 2020 on Post-border Import Inspection and
Supervision (MOT Reg 51), heralding a significant
shift in the oversight of imported goods. MOT Reg 51
replaced all prior policies governing post-border
import supervision, encompassing the spectrum of
import licenses subject to scrutiny, the inspection
procedures, and the penalties applicable
offenders.
Notably, the government's Omnibus Law has paved
the way for streamlining post-border procedures. In
this context, MOT Reg 51 assumes the role of an
instrumental mechanism for the MOT's supervisory
body and investigators to fortify their enforcement
capabilities, expand inspections, and probe into
investigations concerning imported goods that have
cleared customs at the point of entry.
Despite MOT Reg 51 being in force since the middle
of 2020, its actual impact has only become apparent
towards the end of 2022. Over time, the enforcement
of MOT Reg 51 has progressively gained momentum,
manifesting in a growing consistency
assertiveness.
II. Key Development
MOT Reg 51 has given rise to a novel form of examination
known as the Post Border Audit, spearheaded by a
dedicated department within the Ministry of Trade known
as the Directorate of Trade Supervision (DTS). In practice,
the DTS collaborates closely with the Directorate of
Import, the authority responsible for granting import
approvals and licenses. While the DTS primarily provides
recommendations, the ultimate decision-making power
rests with the Directorate of Import.
to
A notable aspect of the Post Border Audit is that it is
conducted by the DTS, which scrutinizes and compares
the alignment between the utilization of import
approvals/licenses held by importers and the import
declarations/PIB data sourced from the Indonesian
Customs office, facilitated by the Indonesian National
Single Window (INSW) system. It is worth noting that
Customs does not partake in this Post Border Audit, as
the focus of the audits diverges.
In the event of any infractions uncovered during a Post-
border Audit, importers may be subjected to an array of
penalties, spanning from product recalls to the disposal
of imported goods. In more severe instances, import and
business licenses, including the pivotal Business
Identification Number/NIB, could face revocation.
This regulation encompasses all importers who have
been granted concessions in post-border customs
clearance. Although no specific implementation
guidelines have been issued for MOT Reg 51, it is widely
acknowledged that internal policies and discretionary
and measures play pivotal roles in the enforcement of this
regulation.

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 TRADE, CUSTOMS AND LOGISTIC TRENDS,
ISSUES & RECENT EXPERIENCES

III. Recent Experience

In the past year following the implementation of

MOT Reg 51, the Ministry of Trade (MOT) has
displayed commendable diligence in enforcing
supervision and inspection measures, with a
particular focus on industries such as textile,
footwear, apparel, and clothing. Moreover, they
have placed a priority on monitoring sensitive
goods, including essential food items.

In certain instances, due to the absence of

detailed implementation regulations or internal
record-keeping systems, a voluntary report
submitted to the MOT may inadvertently be
classified as a violation without formal
notification.

A recurring challenge lies in the significant time

lag between the receipt of recommendations and
the final decision-making process, which can span
several months. This generates a sense of
uncertainty among business operators, impeding
their ability to make informed commercial
choices. This pattern is expected to persist in
Indonesia over the coming years as audits
become more frequent.

ABOUT US
Armand Yapsunto Muharamsyah and Partners, is
one of Indonesia's premier law firm. Its origins date back
to 1994, and since then it has undergone various
reorganizations and name changes before adopting its
current form as AYMP, headquartered in Jakarta.

For more than twenty years, AYMP's team of lawyers has

provided counsel to prominent companies and global
financial institutions on intricate legal and business
issues.

AYMP holds a prominent position among Indonesia's top

law firms, offering a comprehensive range of services,
including banking and finance, capital markets, mergers
and acquisitions, commercial litigation, insolvency and
restructuring, infrastructure, private equity, investment
(including green investment), intellectual property,
energy and mining, oil and gas, commercial litigation,
customs, trade, logistics, and indirect taxes.

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