|Freddy Karyadi||Oene Marseille|
On July 14 2011, Indonesia's House of Representative passed a new law that amends Law No 9 of 2006 on the Warehouse Receipt System. The new law amends seven articles of Law 9/2006 and introduces 12 new articles. Through this amendment, the government aims at accommodating business demands regarding warehouse receipts. The new law excludes one sub-paragraph in Article 5, which stated that the value of the goods must be based on the market price when the goods are placed in storage.
This exclusion means that parties who store their goods in warehouses, may act as a price setter, not as a price taker. Moreover, the new law also removes point (d) of Article 29 which stated that one of the requirements for goods certification to confirm the nature of the goods-perishable or non-perishable goods.
The new law also introduces a new issue, namely the establishment of the warehouse receipt insurance institution (lembaga jaminan resi gudang), whose function to anticipate problems that could be experienced by the warehouse organiser, such as bankruptcy or mishandling.
The new law introduces a new administrative sanction in the form of instruction to replace any damages and/or lost goods with the same quality and amount as stated in the warehouse receipt. Such sanction will be further regulated by the insurance institution.
It is the hoped that this new regulation will support, in a more economical and scaled way, the possibility of commodity financing.
Oene Marseille and Freddy Karyadi
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