Regulation of the Minister of Trade Number 12 of 2026 Strengthens Government Intervention in Export Licensing to Safeguard National Supply Availability

Introduction 

On April 29, 2026, the Ministry of Trade (“MOT”) issued Regulation of the Minister of Trade Number 12 of 2026 on the Fifth Amendment to Regulation of the Minister of Trade Number 23 of 2023 on Export Policies and Arrangements ("MOT Regulation 12/2026"). MOT Regulation 12/2026 grants the government the authority to halt, restrict, or tighten the export requirements for strategic commodities through the suspension or revocation of Business Licensing in the Export sector. 

Based on its recitals, MOT Regulation 12/2026 aims to ensure the domestic availability of certain goods to support national interests. The government deemed it necessary to maintain the supply of food goods and strategic commodities to ensure they remain available and are not disrupted by increases in exports. Therefore, MOT Regulation 12/2026 provides a basis for the government to rapidly restrict exports to maintain goods availability, price stability, and the implementation of government programs.

Comparison 

MOT Regulation 12/2026 inserts 2 (two) new articles and amends the annexes in Regulation of the Minister of Trade Number 23 of 2023 on Export Policies and Arrangements ("MOT Regulation 23/2023") as last amended by Regulation of the Minister of Trade Number 5 of 2026 ("MOT Regulation 5/2026"). The comparison between MOT Regulation 12/2026 and MOT Regulation 23/2023 as last amended by MOT Regulation 5/2026 is set forth below:

Key Provisions 

Authority of Ministerial Intervention on Export Licensing 

Based on Article 51B paragraphs (1) and (2), the Minister of Trade may suspend the issuance of, freeze, or revoke Business Licensing in the Export sector, as well as suspend Verification or Technical Tracing services by Surveyors. The Minister of Trade may impose these measures based on considerations of national interests, public interests, the smooth administration of government or government programs, the implementation of Presidential directives, or proposals from the heads of ministries or non-ministerial government agencies.

Mechanisms for Imposing and Notifying Emergency Sanctions to Businesses

Article 51B paragraph (3) stipulates that prior to imposing a suspension or freezing, the Minister of Trade discusses the planned action in a coordination meeting at the ministry responsible for coordinating economic or food affairs. Article 51B paragraphs (4) and (5) state that the Director General of Foreign Trade issues the decision resulting from the coordination meeting on behalf of the Minister of Trade in the form of an electronic letter through the Indonesia National Trade Repository ("INATRADE") System, which is forwarded to the Indonesia National Single Window ("SINSW"), and direct notification to exporters is only provided for sanctions involving the freezing and/or revocation of licenses. In the event of a disruption to the electronic system, Article 51B paragraphs (7), (8), and (9) stipulate that the decision is submitted manually through a letter to the Head of the National Single Window Agency, with manual notification to exporters only for freezing and revocation sanctions, and the Surveyor manually submits the suspension of technical verification to the exporter.

Procedures for Revoking Sanctions and Reactivating Company License Status 

The restoration of export license status for businesses is carried out through the lifting of the suspension or the reactivation of Business Licensing that was previously frozen. During this process, the Director General of Foreign Trade on behalf of the Minister of Trade submits an electronic notification to the Head of the National Single Window Agency through the INATRADE System. For sanctions originating from the proposals of other ministries or agencies, the head of the respective ministry or agency submits a proposal to revoke the sanction to the Minister of Trade before the Business Licensing status is reactivated, as stipulated in Article 51C paragraph (1) letter b. Furthermore, in the event of a disruption to the INATRADE or SINSW systems, the Director General of Foreign Trade notifies the exporter of the license restoration manually through a letter, as set forth in Article 51C paragraph (2), paragraph (3), and paragraph (4).

Adjustments to the Export Commodity Provisions Matrix in the Annexes for Businesses

MOT Regulation 12/2026 amends Annex I, IV, and V, which govern the obligations of businesses regarding the ownership of Registered Exporter (Eksportir Terdaftar, "ET"), Export Approval (Persetujuan Ekspor, "PE"), and Surveyor Report (Laporan Surveyor, "LS") documents. These amendments apply to businesses exporting certain commodities, including adjustments to Tariff Posts (Harmonized System, "HS Code") and exporter identities. The amendments include:

1. Edible Bird's Nest (Sarang Burung Walet, “SBW”): requires a Self-Declaration Letter complemented by a Veterinary Control Number (Nomor Kontrol Veteriner, “NKV”) and/or a Decree on the stipulation of quarantine measure implementation sites.

2. Rice: differentiates exporters between Public Corporation BULOG for general purposes and SOEs/BUMD/private companies, with the issuance of Export Approvals based on Commodity Balances (Neraca Komoditas).

3. Animals and Animal Products: requires a recommendation from the Ministry of Agriculture.

4. Wild Plants and Animals: groups commodities based on CITES and Non-CITES lists and requires a SATS-LN from the Ministry of Environment and Forestry.

5. Fish (Pisces): requires a SAJI-LN from the Ministry of Marine Affairs and Fisheries.

6. Forestry Industry Products: adjusts the classification of wood, panels, and prefabricated wooden buildings.

7. Rough Diamonds: requires a Kimberley Process Certificate (KPCS).

8. Tin: divides Registered Exporters into ET for Pure Tin Ingots and ET for Industrial Tin, and requires RKAB Approval and proof of registration on the Minerba One Data Indonesia (MODI) of the Ministry of Energy and Mineral Resources.

9. Metal Scrap and Waste: requires a recommendation from the Ministry of Industry.

10. Other Fuels: governs the export of ethyl alcohol and biodiesel (coconut/palm methyl ester).

11. Oil and Gas: governs oil and gas Business Entities (Badan Usaha, “BU”) and Permanent Establishments (Badan Usaha Tetap, “BUT”), as well as provisions for exporting natural gas via pipelines.

12. Processed/Purified Mining Products: stipulates the grade limits for metallic and non-metallic minerals.

13. Non-Subsidized Urea Fertilizer: requires an Export Allocation Certificate (Surat Keterangan Alokasi Ekspor, “SKAE”) from PT Pupuk Indonesia (Persero), as well as a guarantee of domestic availability for subsidized fertilizers.
    

Transitional Provisions 

The transitional provisions govern the applicability of ongoing export activities. In the event the government imposes a suspension, freezing, or revocation of export licenses, goods that have been processed may still be exported and export services provided by the Directorate General of Customs and Excise will continue, provided that the goods have obtained an Export Customs Declaration (Pemberitahuan Pabean Ekspor, “PEB”) registration number and date from the customs office prior to the effective date of the suspension, freezing, and/or revocation. Furthermore, for businesses in the mining and forestry sectors, this regulation relates to the license transition period stipulated in MOT Regulation 5/2026, wherein the previous versions of the Business Licensing for ET for Pure Tin Ingots under Smelter Facility Cooperation and ET for Industrial Tin remain valid until April 30, 2026, and exporters must submit an ET application using the new format prior to that date.

Closing 

MOT Regulation 12/2026 grants the government the authority to suspend, freeze, or revoke Business Licensing in the Export sector as well as Technical Verification services, not only as an administrative sanction but also to maintain the domestic availability of goods. This authority is exercised through a coordination meeting mechanism and a decision by the Director General of Foreign Trade on behalf of the Minister of Trade, which is submitted through the INATRADE and SINSW Systems or manually in the event of a system disruption. The amendments to Annexes I, IV, and V also govern adjustments to licensing requirements for various commodities, including food, natural resources, and industrial products, which must be fulfilled by businesses. In its implementation, the suspension or freezing of licenses may affect the smooth delivery of goods; therefore, businesses must ensure licensing compliance and monitor their export license status periodically. However, export activities may still continue for goods that have obtained an Export Customs Declaration registration number and date prior to the imposition of the suspension, freezing, and/or revocation, making administrative completeness and timeliness in the export process crucial factors to ensure business activities remain operational.