Debureaucratization and Deregulation of Trade-Related Laws in Indonesia to Increase Exports

Abstract

The COVID-19 pandemic caused the majority of countries in 2020 to experience an economic crisis and economic growth in 2021 to slow down. Trade is one of the sectors affected by the pandemic in 2020 due to the policy of limiting activities to reduce the negative impact of COVID-19 and slowing down of economic activities. This condition also becomes more difficult if the number of laws and regulations is considered too many and overlapping. In the midst of pandemic and uncertainty, a breakthrough is needed. Therefor this research will discuss Debureaucratization and Deregulation of Trade-Related Laws in Indonesia to Increase Exports. Based on the Juridical Legal Analysis, it can be seen that since Omnibus Law/the Act Number 11 of 2020 concerning Job Creation and its derivative regulations related to trade has been enacted, there is potential to create Legal Simplification. In 2021, there are 4 new technical regulations derived from Omnibus Law (Regulation of the Minister of Trade No.16 concerning Verification or Technical Investigation in the Foreign Trade Sector, Regulation of the Minister of Trade No. 17 concerning Exporters and Importers of Good Reputation, Regulation of the Minister of Trade No. 18 concerning Export Prohibited Goods and Goods Prohibited from Imports, and Regulation of the Minister of Trade No. 19 concerning Export Policies and Regulations) which are expected to improve the ease of doing business and export in Indonesia. After the enactment of these 4 Regulations of the Minister of Trade in 2021, there are 24 old regulations that have been withdraw and declared inapplicable. Apart from that, there is also ease of doing business for exporters, such as for coffee commodities, where coffee export licensing is simplified because this commodity is excluded as goods that are regulated by the export trade system so that coffee becomes a product that is free to be exported. The regulation of an online licensing system can minimize the cost and the possibility of direct meetings between business people and the government so as to reduce the opportunities for corruption, collusion and nepotism. The online system of the Indonesia National Single Window (SINSW) and INATRADE systems can facilitate the process of disclosure of information and permits needed by stakeholders to increase ease of doing business, including Indonesian exports.