Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indonesia has extended the deadline for mandatory registration of exporters of non-hazardous and toxic waste to Jan 1, 2021, according to sources at pre-inspection agencies. Official confirmation of the extension is awaited. 


Documentation for registration and KSO services on VO issuance in Jakarta and physical inspection in the country of origin is still mandatory. KSO-Sucofindo is the government agency responsible for inspection, supervision, and implementation of the import policy.


The earlier deadline for registration was July 1, which was later extended to Oct 1. The third extension is likely to bring relief to the scrap importers who are unable to source material amid the COVID-19-related delays in registration. But market participants will require more clarity from government officials to resume scrap trade.


Indonesia’s new scrap norms were formulated late last year. It requires importers to reapply for a license that included proof of the exporter’s registration. Exporters on the other hand had to register with the Indonesian Embassy and Consulates in their home countries. The government had informed ISRI that the whole process would take five days, but exporters faced a lot of delays due to the pandemic and were not clear if registration was required once or it would be a cyclic process.


Shipments that arrived in Indonesia before Oct 1 could be released, if it was inspected before shipment and the importer was licensed. Amid lack of clarity about the import policy, many suppliers had stopped offering scrap to Indonesia since mid-September. Some shipments were diverted to countries like Malaysia and Thailand. If imports resume and scrap supplies ease, traders expect Indonesian mills to import more scrap instead of relying on billet imports to feed their furnaces.

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