E-commerce Association Says Permendag 50 Of 2020 Must Encourage Industrial Downstreaming

E-commerce (Photo: Doc. unsplash)

JAKARTA - The Indonesian E-commerce Association or idEA responded to the plan to make a positive list of imported goods proposed by the Ministry of Trade (Kemendag).

IdEA chairman Bima Laga said the policy would attract investment into Indonesia and encourage industrial downstreaming.

"For goods that are not here (Indonesia) we can withdraw it for investment in the country, so it becomes like downstreaming, right," Bima told reporters in the Kebayoran Baru area, South Jakarta, on Friday, September 8.

Bima assessed that later the supply of goods that have been relying on imports can be produced domestically. In addition, the entry of investment will also encourage the transfer of knowledge and improve the quality of the industry in the country.

"I also gave input, sir, if you want it like that (proposed positive list) what if this item is not yet in Indonesia, we will withdraw them so that investment in Indonesia so that Indonesian MSMEs can have a transfer of knowledge of their products, goods, and our industry as well," he said.

Previously reported, Deputy Minister of Trade (Wamendag) Jerry Sambuaga said that his party would be selective in terms of imports. This means that the positive list will prioritize raw goods or raw materials that are not available in Indonesia.

Deputy Minister of Trade Jerry assessed that the raw materials will become capital for domestic industries whose products will be re-exported later.

"So, in our opinion, this is something that provides added value, we are not just importing consumer goods or consumptive ones, no," Jerry told reporters when met at the High Level Ministerial Meeting: Policy Dialogue at the ASEAN Inclusive Business Summit 2023 forum in the Nusa Dua area, Bali, Wednesday, August 23.

In addition to prioritizing raw materials, said Jerry, the positive list will also include imported products that cannot be produced domestically.

He considered that the policy of importing products that could not be produced domestically was commonplace to meet needs.

"If we can't produce domestically, yes, of course, the logical consequence is importing from outside," said Jerry.