Applying a risk-based approach at the Ministry of Trade 

  • Alliance Project

  • Status: Completed

  • Duration: Q2/2019 – Q3/2021 

The project develops and applies systematic risk indicators for licensing and post-border control processes of the Indonesian Ministry of Trade. This will support Indonesia’s efforts towards a fully integrated risk management system and make controls more efficient and faster for both, the ministry and traders.  


The Indonesian Ministry of Trade is responsible for several documents and processes affecting imports and exports. A new mandate in 2018 tasked the ministry to supervise the import of prohibited and/or restricted goods (Lartas goods) post-border clearance by customs. The high volume of imports and exports coupled with new Lartas procedures lead to inefficiencies and longer processing times for mandatory documents and licenses for traders. 


In this Alliance project the ministry develops an intelligence-led risk-based approach to controls and trade facilitation. The project works in the following fields

  • Developing and applying systematic risk indicators for two core processes to improve controls. These processes are a) issuing import and export licenses and b) controlling goods post-border after customs release. They serve as a starting point for developing an integrated risk management system that can be scaled up to all applicable processes at the ministry and border agencies.
  • Simplifying procedures by establishing a ‘reputable company’ scheme to support compliant traders. This scheme is modelled after the ‘Authorised Economic Operator’ (AEO) programme of Indonesia customs. It is achieved by improved inter-agency cooperation as well as information and experience sharing between customs and the ministry.
  • A group of companies tests and provides feedback on the new risk-based approach and ‘reputable company’ scheme within a pilot programme. It is conducted in cooperation between the ministry, Indonesia customs and the Indonesia National Single Window. Based on the lessons learned in this pilot programme, the procedures will be refined and finally rolled out for all traders.


  • An improved risk management leads to faster processing of import and export licenses and fewer interventions. Dangerous goods or non-compliant traders can be targeted and controlled more effectively.
  • The ministry creates incentives for traders to invest in compliance and respect all relevant laws and regulations.
  • Actively involving the private sector, associations and individual companies to share their industry insights and expertise, provides sense checks from a trader’s perspective.
  • Indonesia fulfils its global commitments to trade facilitation by implementing Article 7.4 ‘Risk Management’ of the WTO TFA.


Do you work for a company with international supply chains? Please contact us if you would like to learn more about the project and the Alliance. 


This project contributes towards the implementation of the following article of the World Trade Organization (WTO) Agreement on Trade Facilitation:

  • Article 7.4: Risk Management




Dr Ceren Erdogan
Project Lead 

Vera Tjandrawinata
Project Manager 

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