Multi-agency Indonesian government conducts joint warehouse checks ahead of Ramadan

Seven Indonesian ministries have reportedly been conducting joint warehouse checks in Jakarta, Tanggelang and surrounding areas since February 11, which are expected to last two weeks.The action involves a number of areas with high compliance requirements and penalties, with some sellers believing that the intensity exceeds that of July last year. Relevant parties suggested sellers to transfer temporary storage items and close warehouses. On the macro level, Indonesia has a high fiscal deficit in 2024 despite state revenues, such as a budget freeze on the construction of the capital and a heavy burden on the free lunch project, and the strengthening of the import review and tax supervision can prevent tax loopholes and increase fiscal revenues. At the micro level, merchants before Ramadan, a large number of goods, the proliferation of illegal imports, and the demand for e-commerce shopping during the month of Ramadan, the government hopes to use this to crack down on prohibited goods. Indonesia focuses on regulating imported textiles, clothing, ceramics, electronics and other categories. Customs clearance timelines are expected to be lower due to increased scrutiny at ports and the impact of Ramadan and Eid al-Fitr holidays. In addition, dockworkers' protests will also affect logistics, and merchants are advised to ensure that their goods are qualified and that they plan their stocking schedules appropriately.