"The Minister Of Industry Will Immediately Complete The Rules For Restricting Goods In Bonded Areas," He Said

Minister of Industry Agus Gumiwang Kartasasmita (Photo: dock. Antara)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that his party was finalizing the latest regulations regarding restrictions on goods in bounded areas (export orientation) for selling in the domestic market.

Minister of Industry Agus assessed that the entry of products from bounded areas that should have been sent to the export market would be a new problem for the growth of the domestic industry itself.

This is because when the sale of these goods is carried out domestically, it can cause competition to seize market share.

"The Ministry of Industry will also be very careful in granting permits above 50 percent of the product of the tied area to enter the domestic market. God willing, next week it can be agreed upon in harmonization, there will be requirements for additions above 50 percent," said Minister of Industry Agus when met at the Ministry of Industry office, Jakarta, Thursday, November 2.

Agus revealed that the restrictions on products in braided areas to sell in the domestic market uphold the principle of justice for business actors in Indonesia because industry players in the tied area had previously received many incentives from the government, especially when the global export market was experiencing weakness.

"The most important thing for us is that the level of playing field must be safe between bounded areas and non-bound areas, lest we on behalf of the weak export market, we help braided regional companies, but the problem is that they are moved to non-binding ones," he said.

According to Agus, through regulations that will be issued next week regarding products from tied areas, the government will further tighten products in tied areas to sell in the domestic market.

He said, one option that is being discussed for product arrangements in the tied area is that when they want to sell goods to the domestic market, they must first release their industrial status in the tied area which is currently receiving incentives from the government.

"Later we will consider companies in the tied area, if it has been 2-3 years in a row he wants to enter his products into the country, yes, his status as a tied area must be revoked," said Agus.

"This level must be the same, outside the bound area he also sweats, he also exports, don't think that those outside the tied area are not exports, they are also facing weakening from the global market," he added.