Govt mulls new agent ruling

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)