Indonesia – Corn & Soya Bean Imports

Indonesia imposes restrictions on corn and soya bean imports.

Since August 2015 the Indonesian Government’s Bureau of Logistics (Bulog) has imposed restrictions on corn and soya bean importation. Indonesian feed-mills are now required to import corn and soya beans via Bulog, rather than directly, as in the past. This action has been taken to protect local growers from the influx of imported corn and to encourage greater self-sufficiency.  

North’s Indonesian correspondents report that Bulog appears to set a monthly quota for the importation of corn and soya beans. If a ship arrives for discharge after the monthly quota has already been met, then the ship will not be allowed to discharge until such time as Bulog grants permission. At the time of writing, there are ships loaded with corn and soya beans awaiting discharge approval off Belawan and Cigading. Correspondents advise that most of the ships will eventually be called in to discharge, albeit after a longer than normal waiting time.

It is also reported that some importers have resorted to procuring import permits illegally. This has caused Indonesian Customs to carry out stringent checks on import shipping documentation. Importers therefore need to ensure that they have a clean and proper licence to import.

The longer waiting times give rise to increased risks of cargo degradation due to mould and/or infestation. Ships ordered to load grain cargoes for discharge in Indonesia are therefore advised to conduct appropriate precautionary measures before and during loading, during the voyage and at discharge. See our Loss Prevention Briefing – Carriage of Grain Cargoes  

(Our thanks to Spica Services (Indonesia) and Spica Services (S) Pte Ltd for their help in producing this article).