AmCham Update
AmCham Update Vol. 3 #64
Duty-Free Limits Changed, Sharp Rise in Covid Cases, More Restrictions on SOE Leaders in Politics, WTO E-Commerce Tariff Moratorium Extended
Jun 17, 2022

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Duty-Free Alcohol Rules Changed for International Passengers

International travelers visiting Indonesia are now allowed to bring alcoholic beverages with a maximum volume of 2.25 liters per person, as regulated under Minister of Trade regulation 20/2021 on Import Policy and Regulations. This revises Minister of Trade Regulation 20/2014, which stipulated the maximum volume was 1 liter.

However, import duties remain the same, whereby only 1 liter will be duty-free and the remaining amount will incur customs duty. Thus, when an incoming international traveler brings in 2.25 liters of alcoholic beverages for personal consumption, 1 liter will not incur customs duty, but the remaining 1.25 liters will.

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More Than 1,000 Covid-19 Cases Daily

Indonesia has seen more than a thousand new Covid-19 cases for two consecutive days – 1,242 cases on June 15, and 1,173 on June 16. The largest contributor was Jakarta with 696 cases, followed by West Java with 158. The overall number of positive cases in Indonesia since the pandemic began in March 2020 is now 6,064,424.

Minister of Health Budi Gunadi Sadikin said the peak of cases of the Omicron BA.4 and BA.5 subvariants will only reach a maximum of 25,000 cases per day, and will likely occur sometime around the third and fourth week of July before slowing down again. The first 20 patients who were confirmed positive for the BA.4 and BA.5 subvariants in Indonesia have all been declared medically cured, according to Ministry of Health Spokesperson Mohammad Syahril.

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Expanded Restrictions on SOE Leadership

A new government regulation which broadens previous rules prohibiting executives and commissioners of state-owned enterprises (SOEs) from holding positions of political leadership was signed on June 8. It aims to reduce the likelihood of conflicts of interest in SOEs, noting that according to Transparency International Indonesia (TII) over 15 percent of all SOE executives are politicians. The regulation also includes a clause under which SOE leaders can be held personally liable for corporate losses.

Similar provisions have been issued at least twice before (Law 7/2017 and Law 10/2016), and Director of the Association for Elections and Democracy Titi Anggraini said the new regulation is “firmer and more detailed”. However, it fails to restrict SOE leaders from participating in political activity. Titi said that ideally restrictions should include realpolitik activities as political affiliations will only foster conflicts of interest. Arya Fernandes from the Centre for Strategic and International Studies (CSIS), agreed and said that if we want more progressive leadership, then all levels of SOE leadership should not be registered as a member of any political party.

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BPJS Fee to be Income-Based

The government will abolish Social Health Insurance Administration Body (BPJS Kesehatan) hospitalizations based on classes 1, 2, and 3 in July, and impose a Standard Class and fees will be adjusted to the income level of patients.

Member of the National Social Security Council Asih Eka Putri said the range of payment fees for BPJS Kesehatan Participants is still being formulated, and that justice, equity principles, and social insurance principles will be maintained and enforced. However, if patients are hospitalized in BPJS Standard Class and wish to move to a higher inpatient room, they should pay the non-covered fee to the hospital where they are treated.

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WTO Extends Moratorium on E-commerce Tariffs

The World Trade Organization (WTO) has agreed to extend a moratorium on imposing duties on electronic transmissions until the next ministerial meeting in 2023. The moratorium has exempted data flows from cross-border tariffs since 1998. The agreement also stipulates the moratorium will end in March 2024 if the next conference is postponed. Major players such as the United States, the United Kingdom, and the European Union are concerned that allowing it to expire would undermine global economic recovery already threatened by price cuts.

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AmCham Cares: Coca-Cola

Sharing the magic of togetherness for those in need during the recent Ramadan, Coca-Cola Indonesia and bottler Coca-Cola Europacific Partners Indonesia (CCEP Indonesia), teamed up with non-profit the Mahija Parahita Nusantara Foundation.

Coca-Cola shared the magic of community with waste collectors and select families under Mahija Parahita Nusantara's active collective centers in North Sumatera and South Sulawesi, by distributing over 600 packages of essential food. It also distributed over 5,000 Iftar meal packs, including beverages, to waste collectors and families on "Rabu and Jumat Berkah" (Good Wednesday and Friday).

With people at the heart of Coca-Cola, the real magic of the brand is further highlighted by this special initiative of bringing different organizations together for a good cause. Triyono Prijosoesilo, Public Affairs, Communications, and Sustainability director for Coca-Cola Indonesia said: “Coca-Cola is grateful to be part of the community. Yet, we often forget to notice the important role of waste workers, a very important community that plays an essential role in our daily lives. In the special month of fasting, prayer, and reflection, we gladly give back to the community through Iftar meal packages distribution to the waste collectors as part of underprivileged communities.”



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AmCham Office and Events

AmCham Office and Events

The AmCham Office is on the work-from-home status and all face-to-face meetings and events have been postponed. We are having a number of meetings online using the Zoom   platform. You will be notified of virtual meetings as they are scheduled.

 

 


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What is Your Company Doing on COVID-19?

Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.


Stay well

We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy

Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.


AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.

Jul 12, 2022 / 09:00 - 10:30
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