27 February, 2020

Indonesia: Setting up a Risk Management Pilot Program

The Ministry of Trade’s Risk Management Task Force Team in collaboration with GIZ Alliance for Trade Facilitation are jointly working towards process optimizations and risk-based approaches related to licensing and post border controls. Together with the Directorate General of Customs and the Indonesia National Single Window (INSW), the partners discussed in February 2020 how manufacturing companies that have the Authorized Economic Operator (AEO) status can help test and refine the new processes to be implemented.

AEO companies have a proven compliance track record and are thus especially suited to test the changes. On business side, there is great interest to be involved in the pilot project. The project team held several private sector meetings to confirm active participation and prepare how to operationally test the benefits under the program.

Also, in February 2020, Heru Pambudi, Director General of Customs and Excise, invited the Ministry of Trade Risk Management Task Force Team for a training on Risk Intelligence and Risk Targeting at customs premises. The training had the objective to share best practices on a systematic application of risk criteria at Customs and to support the task force team in building-up risk intelligence parameters at the Ministry of Trade.

The project 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. These two processes, piloted in the project, can then serve as a starting point for developing an integrated risk management system.

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