Govt mulls new agent ruling

JAKARTA (JP): The government said on Tuesday it planned to revise two regulations that stipulate that sole authorized distributors of foreign products must receive recognition from the government to commence their activities.

Director of transportation means at the Ministry of Trade and Industry Muhammad Setiono said the revision was aimed at deregulating foreign product distribution and creating fair competition in the business.

The regulations in question are Ministry of Industry and Trade Decree No. 295/1982 on sole authorized distributors and ministerial decree No. 428/1987 on the requirements to gain the government's approval for sole distributors of automotive, electronic and electric products.

"Under the future regulations, local distributors do not need to seek the government's approval to act as the sole authorized distributor of foreign products, " Setiono said on the sidelines of a seminar on the prospects of automotive authorized sole agencies in the country.

He added that a firm would only need to reach a deal with a foreign producer to become its distributor in the country. (iwa)