Indonesia Boosts Green Trade with Customs Partnerships

This article delves into the measures taken by Indonesian Customs to achieve environmental compliance in cross-border trade. It examines inter-agency collaboration, the enforcement of regulations and policies, the establishment of risk management mechanisms, and the application of a single window environment. The article also explores the challenges and opportunities Indonesia faces in environmental cooperation. It emphasizes the importance of strengthening inter-agency collaboration to improve environmental compliance levels. The study highlights the crucial role of customs in promoting sustainable trade practices and protecting the environment.
Indonesia Boosts Green Trade with Customs Partnerships

When you purchase an eco-friendly product online that travels across oceans to reach you, there's an intricate environmental protection process happening behind the scenes. Indonesian customs authorities work with multiple agencies to ensure these imports meet strict environmental standards. Here's how they're protecting our planet through international trade.

Indonesia's Environmental Protection Network

Indonesian Customs doesn't work alone in environmental protection. They collaborate with numerous government agencies to create a comprehensive regulatory framework:

  • Ministry of Environment and Forestry: Leads environmental policy implementation and combats environmental crimes across multiple sectors including waste management, ozone-depleting substances (ODS), mercury, endangered species (CITES), and timber products.
  • Ministry of Marine Affairs and Fisheries: Oversees marine and fishery matters, including lobster larvae and fish imports.
  • Ministry of Trade: Manages import/export controls for waste, hazardous materials, ODS, and CITES products.
  • Ministry of Industry: Supervises industrial waste and dual-use items while advising on environmentally sensitive imports.
  • Ministry of Agriculture: Coordinates plant and animal product regulations.
  • National Research and Innovation Agency: Provides laboratory testing support.
  • Indonesian Maritime Security Agency: Conducts security patrols in Indonesian waters.
  • Indonesian National Police: Enforces laws and combats criminal activities.

Regulatory Framework for Environmental Compliance

Indonesia employs multiple international agreements and domestic regulations to ensure trade meets environmental standards:

Multilateral Environmental Agreements

  • Montreal Protocol: Regulates ODS through Trade Ministry Regulation No. 20 (2021)
  • Basel Convention: Governs legal waste trade under the same regulation
  • CITES: Manages wildlife imports/exports through separate trade ministry regulations
  • Asian Forest Cooperation Organization Agreement: Regulates timber product trade
  • Rotterdam/Stockholm Conventions: Control chemical/biological/radioactive materials

Free Trade Agreements

Environmental provisions appear in Indonesia's FTAs with EFTA, Chile, and Japan, covering environmental cooperation and principles.

Domestic Restrictions

The 2006 Customs Law (Article 53) and 2020 Finance Ministerial Regulation establish controls on prohibited/restricted goods.

Coordinated Border Management

Indonesia employs multiple approaches to border coordination:

  • Formal and informal interagency cooperation
  • Information and resource sharing
  • Clear division of responsibilities
  • Joint accountability measures

Digital Transformation in Environmental Compliance

Indonesia has achieved 100% digital customs processing through its National Single Window (NSW) platform, which integrates all environmental regulations. Key features include:

  • Electronic submission and verification of all documents
  • Interagency data sharing through NSW
  • Alignment with WCO data models for international compatibility
  • Special clearance procedures for time-sensitive environmental goods

Challenges and Opportunities

While making progress, Indonesia faces several environmental trade challenges:

  • Balancing environmental protection with industrial needs
  • Strengthening oversight of restricted environmental goods
  • Combating perceptions of becoming a waste dumping ground
  • Improving fraud detection and enforcement

Opportunities for improvement include:

  • Expanding electronic government systems
  • Increasing awareness of green economy principles
  • Enhancing NSW implementation for environmental goods
  • Developing comprehensive environmental databases

Future Directions

Indonesian Customs continues working to strengthen interagency cooperation on environmental compliance through:

  • Developing performance measurement indicators
  • Expanding risk assessment systems to include environmental factors
  • Enhancing compliance programs like Authorized Economic Operator (AEO) certification
  • Exploring partnerships with circular economy platforms

Through these coordinated efforts, Indonesia aims to better protect the environment while facilitating legitimate international trade.