Ketum Apindo Calls Restrictions On Imports Must Prioritize Domestic Industry

Ketum Apindo Shinta Widjaja Kamdani. (Photo: Doc. VOI)

JAKARTA - The Indonesian Employers' Association (Apindo) said the implementation of the Minister of Trade Regulation (Permendag) Number 36 of 2023 concerning import policies and regulations that will take effect from March 2024 must continue to prioritize domestic industrial needs.

Apindo Chairman Shinta W Kamdani said that entrepreneurs are worried that an inappropriate limited ban based on industrial sectors could cause supply chain disruptions in a number of domestic industries.

"We see that the local upstream (in some industries) industry has not been fully able to meet the needs of industrial raw materials, so it is still necessary to import the raw materials of these products," Shinta said as quoted by ANTARA, Monday, February 19.

Apindo believes that the government has issued Permendag 36/2023 to increase the domestic industry and regulate import governance aimed at increasing the productivity of the intermediate and downstream industries.

However, Apindo sees that in several articles related to restrictions on importing raw materials and auxiliary materials, there is a very limited domestic capacity of upstream industry.

According to Shinta, several items of the HS Code of strategic policy need to be revised to facilitate the import of raw materials or auxiliary materials.

On the other hand, Apindo appreciates the government for firmly enforcing the return of a number of HS Code Post Borders to be returned to Border.

He hopes that there will be more assertive arrangements in overcoming the importation of illegal finished products that have flooded the Indonesian market.

Meanwhile, Apindo's Head of Trade Anne Patricia Sutanto hopes that Permendag 36/2023 will not make it difficult for the retail sector to have official and accountable business activities, because the retail sector is a labor-intensive business sector.

For this reason, harmonization of the upstream, intermediate, downstream, and retail industries needs to be carried out following market dynamics so that the competitiveness of domestic products is maintained and balanced with imported products.

The assessment of the supply chain harmonization needs to be done from time to time to avoid excessive inflation or the flooding of imported products in the country.

Anne said that the technical regulations in the implementation of Permendag 36/2023 have been socialized to all relevant stakeholders so that there is no backlog for supply chain routines in each sector that is affected.

"We also appeal to the government that the electronic system that is the platform is also ready before the implementation of this regulation is implemented," said Anne.

He said it was necessary at least 3 to 6 months after implementing regulations and implementation infrastructure, including the electronic system related to Permendag 36/2023, to be ready to accommodate all incoming licensing requests.

Permendag 36/2023 is considered not to require delays in implementation, except for raw materials that have not been and are not produced in the country and if technical regulations have been well socialized.

However, he continued, Apindo views the need to evaluate import policies for supporting strategic and export-oriented industrial needs.