Have the economic policy packages reduced import costs in Indonesia? A quantitative assessment of two sets of measures (Anglais)

The purpose of this note is to evaluate the outcome of two sets of actions, included in the first of Indonesia’s economic policy packages issued in September 2015 and supported by the Logistics DPL I, aiming to reduce the costs of importing: 1) “The Minister...  Voir la suite The purpose of this note is to evaluate the outcome of two sets of actions, included in the first of Indonesia’s economic policy packages issued in September 2015 and supported by the Logistics DPL I, aiming to reduce the costs of importing: 1) “The Minister of Trade has eliminated Registered Importer and Producer Importer licenses for eight (8) categories of products, which accounted for 10.6 percent of non-oil imports in 2015, as evidenced through various Minister of Trade Regulations.” (action nr. 7 of Logistics DPL) 2) “BPOM has required the application of Import Declaration Letter for food and drugs to be submitted electronically, as evidenced through Head of BPOM Regulations 12 and 13 of 2015.” Our estimates suggest that the elimination of IP/IT and the introduction of the compulsory use of e-BPOM have substantially reduced the costs of importing for the products to which they were applied. The effect is equivalent to a reduction of the import price by 6.7 percent and by 8.4 percent respectively.  Réduire