Indonesia: Jokowi signs regulation on trading in border areas

President Joko “Jokowi” Widodo has signed Government Regulation No. 34/2019 on trading in border areas to regulate trade between Indonesians and foreigners who live along shared borders.

“Trade in border areas […] is allowed in land and sea border areas,” Article 2 of the regulation states.

The regulation stipulates that only Indonesians who live in border areas are allowed to carry out transactions with citizens of other countries who also live in border areas, according to a press statement posted on on Tuesday.

To purchase certain goods with foreigners outside of customs areas, Indonesians are required to show immigration and customs documents issued by the relevant offices at border checkpoints.

Meanwhile, citizens of neighboring counties conducting transactions in Indonesia are required to have identity cards issued by their respective countries.

Furthermore, border trading is only allowed in designated areas.

“Border trading can only be implemented in certain areas that have been designated as sites for border trading,” Article 5 of the regulation states.

The regulation also specifies that only goods that meet the daily needs of those living in border areas can be traded, so long as such trade does not violate bilateral agreements and abides by prevailing laws and regulations.

The regulation also sets a maximum value for border transactions, which differs from the maximum value set for transactions carried out within customs areas. (bbn)