Washington – The Computer & Communications Industry Association has joined 28 other trade associations in sending a letter to the Indonesia Government urging them to reconsider recent regulations enacted that require the filing of customs formalities for downloads and other software.
On January 14, 2023, Indonesia’s Ministry of Finance issued a regulation that mandates entities that import intangible goods such as software and other digital products file a Customs declaration that includes numerous details about each transaction including country of origin, sender information, and import information within 30 days. The regulation went into effect on January 14, 2023, but how it will be administered is unclear, particularly since it would apply to millions of transactions. The U.S. government has since sought clarity on administration of the regulation given the lack of direction from Indonesia.
The Computer & Communications Industry Association has advocated for tech policy that advances innovation, including open digital trade, for over 50 years.
The following can be attributed to Jonathan McHale, Vice President of Digital Trade:
“Requiring customs formalities to be filed along with downloads would be nearly impossible to administer fairly and could deeply undermine the digital economy in Indonesia at a moment when many companies—both foreign and local—are seeking to capitalize on its growth in the country. As Indonesia and the United States seek to bolster their ties in the digital economy through the Indo-Pacific Economy Framework with regional partners, assurances should be made to both current and potential future investors that downloads will not be subject to this regime.”