ERIA and Indonesia’s Ministry of Trade Identify Ways to Improve NTM Implementation
News
29 October 2026

ERIA and Indonesia’s Ministry of Trade Identify Ways to Improve NTM Implementation


Jakarta, 29 October 2026: ERIA, in collaboration with Indonesia’s Ministry of Trade (MoT), held a workshop in Jakarta to validate the findings of the NTM Cost-Effectiveness Toolkit Study in Indonesia. The hybrid workshop brought together around 70 participants, including representatives from government agencies such as the Ministries of Trade, Industry, and Health, the Indonesian Food and Drug Authority, and Indonesian importing companies, to discuss the study’s findings.

The study finds that the non-tariff measures (NTMs) examined are risk-based and well designed. The main burden on companies arises less from the technical requirements themselves than from the way the related procedures interact – with several agencies involved in a single shipment, differing interpretations of the same regulations, and unpredictable approval times. Companies did not call for the removal of these requirements, but rather for simpler and more predictable procedures.

Developed by the United Nations Conference on Trade and Development (UNCTAD), with further inputs from ERIA and ASEAN, the NTM Toolkit was endorsed by the ASEAN Economic Ministers in 2021. At the request of MoT, the toolkit was piloted in Indonesia on selected intermediate inputs.

Opening the workshop, Dr Aladdin D. Rillo, Managing Director for Policy Design and Operations at ERIA, emphasised the importance of greater NTM transparency, particularly amid rising uncertainty in international trade. ‘This workshop is an excellent opportunity for all of us to exchange views on whether the key findings of the study reflect what is happening on the ground, ’ he said.

Ms Nugraheni Prasetya Hastuti, Director for ASEAN Negotiations at MoT, noted that many companies recognised the value of these technical requirements. However, she acknowledged that differing interpretations of the same regulations across government agencies remained an issue that needed to be addressed. ‘There is a clear opportunity to improve how NTMs are implemented without changing the objectives of the NTMs themselves, ’ she said.

Dr Doan Thi Thanh Ha, Economist at ERIA, presented the key findings from interviews with government agencies and companies. The study points to the need for simpler compliance procedures, supported by better-connected systems, predictable processing times, and consistent interpretations of regulations.

Ms Ernawati Munadi, ERIA Affiliate for the study, shared practical insights from the implementation of the toolkit. She highlighted its value as a diagnostic tool to be used alongside legal analysis and impact evaluation. She also offered recommendations for improving its effectiveness, including guidance on product selection and ways to encourage stakeholder participation.

Representatives from relevant government agencies shared their perspectives on the implementation of the NTMs examined, while companies described their experiences in complying with the regulations. Key challenges raised included customs clearance, data connectivity, and lengthy processing times.

In her closing remarks, Dr Ha noted that recommendations for reducing procedural burdens could also apply to products beyond those covered by the study. ‘The issue here is not about removal of the safeguards, but how to implement them in a way that reduces the compliance cost for companies, ’ she said.

Drawing on the feedback received at the workshop, ERIA will finalise the report in November 2026, completing the pilot implementation of the NTM Toolkit in Indonesia.


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