REGULATORY SANDBOX : SOLUSI POTENSIAL UNTUK MENINGKATKAN EFISIENSI IMPOR INDONESIA

Abstract

This study examines the complexities and challenges within Indonesia's import regulatory framework, focusing on Minister of Trade Regulation (Permendag) Number 36 of 2023. The policy has prompted significant public reaction, as targeted bans on certain raw materials disrupt supply chains and result in a 70% decrease in demand for small and medium enterprises (SMEs). Over six months, more than 23,900 media reports highlight the substantial impact on stakeholders, leading to multiple government revisions that may undermine public credibility. The research reveals that the intricacy of regulations, encompassing 19 rules from various ministries, creates significant challenges for businesses, contributing to uncertainty and adversely affecting efficiency and competitiveness. Key issues include high compliance costs, increased risks of regulatory errors, and confusion in interpreting regulations, indicating an urgent need for clearer, more transparent reforms. To address these issues, the study proposes implementing a Regulatory Sandbox to test and adjust import policies in a controlled environment, fostering innovation and enhancing the capacity of businesses and regulators. Long-term harmonization of regulations is also recommended to streamline rules and adopt international standards. By fostering collaboration among government, businesses, and the community, these recommendations aim to improve the import regulatory system, enhance efficiency and transparency, and support sustainable economic growth while attracting investment.