techUK signs Multi-Association Letter on Indonesian Ministry of Finance Regulation 190
techUK joins other tech and business trade associations in expressing its concerns with the Indonesian government‘s new Ministry of Finance Regulation No. 190.
Regulation 190 imposes new customs obligations on imports of intangible goods, such as digital tools, knowledge and content which is transmitted electronically across borders. These barriers to trade increase costs and uncertainty, which prevents the development of the Indonesian digital sector.
techUK, along with trade bodies from the Asia-Pacific region, Europe and the US, condemn this move. Unfortunately, this will not just impact foreign businesses, but also limit the access of Indonesians to global services and hurt Indonesian MSMEs and start-ups. A joint study by the OECD and ECIPE show that this move will increase prices and social welfare costs, decrease GDP, and leave Indonesia at risk of retaliatory trade measures, which may not be digitally-based.
We urge the Government of Indonesia to provide greater clarity on the coverage of the intangible goods that are subject to customs duties and the procedural details of the implementation such as a timeline.
If Indonesia were to reverse these counterproductive measures, and engage in the Indo-Pacific Economic Framework and WTO e-commerce tariff moratorium, the Indonesian digital sector would see a much greater level of investment.
Please find the full letter here.
If members have any questions, please reach out to the techUK trade team via [email protected]
Sabina Ciofu
Sabina Ciofu is Associate Director – International, running the International Policy and Trade Programme at techUK.
Daniel Clarke
Dan joined techUK as a Policy Manager for International Policy and Trade in March 2023.
Oliver Alderson
Oliver is the team assistant for the Policy and Public Affairs teams, joining techUK in November of 2023. He assists the teams admistrative support, communication, and event production.
