Indonesia – Preparing the roll-out of a risk management pilot program

May 2020

The Indonesian Ministry of Trade (MoT) and the Alliance for Trade Facilitation team are finalizing a Risk Catalogue and preparing the roll-out of a risk management pilot program with ‘trusted traders’ – these are multinational companies with AEO/MITA status[1]. The next virtual working sessions will be dedicated to developing risk profiles, conducting interviews with potential pilot companies and sharing experiences on risk management with other agencies.

Risk management is especially relevant during the COVID19-pandemic, as it can ensure as little physical contact between traders and officials as possible and facilitate trade in essential goods. The development of the Risk Catalogue and a risk-aware culture will help the MoT task force team to determine their own risk parameters for creating a better trade practice.

The Alliance project in Indonesia focuses on distinguishing between high risk and low risk traders to simplify trade procedures for two core processes: issuing import and export licenses; and controlling goods post-border after customs release. This activity supports the Government of Indonesia strategy for accelerating an integrated risk management system amongst relevant agencies, contributing to ensure a speedy economic recovery following the COVID-19 pandemic.

[1] AEO: Authorized Economic Operators; MITA: Mitra Jalur Prioritas (similar to AEO but with lower requirements)

Contact

Vera Tjandrawinata

Advisor in Jakarta, Indonesia

German Alliance for Trade Facilitation Project

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