Indonesian Political, Business & Finance News

North Halmahera Secures IPSKA Status from Ministry of Trade

| Source: CNN_ID Translated from Indonesian | Trade
North Halmahera Secures IPSKA Status from Ministry of Trade
Image: CNN_ID

The Government of North Halmahera Regency has officially secured the status of Issuing Institution for Certificates of Origin (IPSKA) from the Ministry of Trade. This status marks a new chapter in transforming North Halmahera into an export trade hub in eastern Indonesia.

In a written statement, North Halmahera Regent Piet Hein Babua stated that this step is not merely an administrative achievement but also a strategic shift in position from a producing region to an active actor in the global trade chain.

“IPSKA grants authority to the local government to issue Certificates of Origin (SKA), a key document that determines access for Indonesian export products to international markets with preferential tariff facilities,” said Piet.

Previously, such services were only available in major cities, which often posed logistical and cost barriers for local businesses.

With this IPSKA, North Halmahera effectively cuts export bureaucracy that has long slowed down local entrepreneurs. The local government is no longer just a facilitator but becomes part of the national export engine.

Before obtaining IPSKA, North Halmahera underwent rigorous stages, including verification of readiness by the Ministry of Trade team, ensuring aspects of institutions, human resources, and local business preparedness. As a result, North Halmahera was deemed eligible and ready.

Piet stated that the IPSKA status comes at the right time. According to him, North Halmahera is pushing the downstreaming agenda for flagship commodities such as coconuts and their derivatives, which are beginning to penetrate export markets.

With SKA authority in this region, the export process becomes faster, logistics costs decrease, and the competitiveness of local products increases.

“This opens opportunities for the region to become a new export hub in North Maluku, while strengthening its position in the national supply chain,” he said.

Piet added that IPSKA is not just a permit but also an instrument of the region’s economic geopolitics.

Amid global competition and the central government’s push for downstreaming, North Halmahera delivers a strong message: “Regions are no longer waiting; regions are starting to take roles,” he said.

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