Import Restrictions Become Retail Entrepreneurs And Malls To Run Business

Chairman of the Indonesian Shopping Center Retailers and Tenants Association (Hippindo) Budihardjo Iduansjah. (Photo: Doc. VOI)

JAKARTA - Retail entrepreneurs and shopping centers or malls feel hampered in running their business. This is because the government has implemented import restrictions that make it difficult for entrepreneurs to get goods.

Chairman of the Indonesian Shopping Center Retailers and Tenants Association (Hippindo) Budihardjo Iduansjah said that the implementation of import policies implemented, one of which was in the regulation of tightening imports for foreign brand goods, had an impact on certain sectors, and resulted in many opportunities being lost.

"The opportunity for expansion to various regions in Indonesia has evaporated into the air because currently many shops selling branded goods are starting to empty and run out of stock," he said at a press conference at the Hippindo National Conference, in Jakarta, Tuesday, January 16.

For example, said Budihardjo, an electronics store in Indonesia, now has only 60 percent of the total SKU in Singapore and Malaysia. The price of branded goods in Indonesia is found to be 40 percent more expensive than in Singapore and Malaysia.

Opsi berbelanja ke luar negeri kemudian banyak dipilih konsumen dalam negeri karena lebih murah dan pilihannya lebih lengkap. Artinya, Indonesia kehilangan peluang menjadi destinasi berbelanja bagi turis asing, karena harga-harganya mahal, jelasnya.

"The practice of entrusted services or jattip that does not pay taxes and illegal imports is becoming more and more mushrooming," he continued.

This illegal import, according to Budihardjo, is detrimental to many parties. From the government side, there is no import tax revenue and VAT. Domestic entrepreneurs who try legally and follow regulations have difficulty getting goods, so it is not only difficult to develop, but also difficult to survive in the market.

Meanwhile, he continued, from the consumer side, this illegal imported goods do not meet the requirements for consumer security according to regulations.

"Hippindo hopes that regulations that make it difficult for legal imports will be made easier so that businesses will continue to grow. The government needs to take firm and comprehensive steps against illegal imports," he said.

In line with Budihardjo, the General Chairperson of the Alphonsus Widjaja Shopping Center Pelola Association (APPBI) admitted that he felt overshadowed by the sustainability of the retail industry in the country in 2024 due to import restrictions.

"So, we at shopping centers are having problems with the term shortage of tenants now due to many retailers delaying or canceling opening businesses. So, I think this is the problem that we are worried about is that the purpose of the impact of import restrictions will go directly to global brands that have stores in Indonesia," he explained.

Therefore, Alphonsus assessed that the government's steps to limit imports were not appropriate.

Instead of limiting it, he continued, the government should provide incentives for domestic products.

"So it should be that domestic products that are given incentives, assisted by all facilities to develop, not by limiting imports," he said.