Wanti-wanti Electronic Entrepreneurs Impact Of The US Trade War

JAKARTA - The Association of Electronic Entrepreneurs (Gabel) is concerned about the flood of goods from China due to a trade war delivered by the President of the United States (US) Donald Trump.

Secretary-General of Gabel Daniel Suhardiman assessed that the US trade war could pose a threat to the domestic industry. The reason is, China was significantly affected by Trump's policy.

"What we are worried about is that American goods entering Indonesia or our products cannot be exported to America. So, what we are worried about if the entry of imported goods is the cheap price and low quality. Not only domestic industry players are harmed, but also our own consumers," Daniel said in a discussion entitled 'The Import Quota is Abolished, Threats or Challenges?' in Jakarta, Thursday, April 17.

Daniel assessed that his party has consistently voiced to the government to remain firmly determined in protecting the domestic market from the invasion of imported finished goods. Thus, it can maintain the competitiveness of the domestic industry.

Regarding this condition, said Daniel, his party always emphasized the importance of technical considerations (pertek) to control imports entering the domestic market.

"We are producers, there is no problem with the application of pertek. Because so far what Pertek has been wearing is for importing finished goods, not for raw materials," he said.

Therefore, with the Minister of Trade Regulation Number 8 of 2024 which eliminates pertek, Gabel considers this not to support the sustainability of the domestic industry, it can even kill competitiveness.

"So, it should be returned to the regulation of Permendag 68/2020 and Permendag 36/2023, which has proven to be able to attract investment into Indonesia," he explained.

He considered that when Permendag 68/2020 was applied to footwear, bicycles and air conditioning, utilization rose 50 percent in just four months. "However, after that there was relaxation of this regulation, finally utilization decreased," he said.

According to Daniel, to protect and secure the domestic market, the government must really seriously suppress the flood of imported finished products. One way is border control at the port, not at the post border.

"In addition, the implementation of certain ports for imports of finished products or entry points. This is also enforced by other countries such as India and Thailand," he explained.

To protect and secure the domestic market, Daniel continued, the government must really seriously suppress the flood of imported finished products. One way is border control at the port, not at the post border.

"In addition, the implementation of certain ports for imports of finished products or entry points. This is also enforced by other countries such as India and Thailand," he explained.

In addition, according to Daniel, the Domestic Component Level (TKDN) policy can also be a strategic step for Indonesia.

"If possible, this TKDN will be expanded, not to be relaxed. Because, with the discourse of easing TKDN, there is already a signal that investors in Indonesia are starting to plan to move or flee to other countries," he said.

"The indications already exist. Some companies are ready to close the assembly," he concluded.