Protect Domestic Markets, Retail Association Urges Jastip Eradication

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

JAKARTA - A number of retail associations assess that the deposit service business (jastip) for imported products must be eradicated. Because, in addition to bringing in illegal imported products, this type of business also threatens the existence of domestic products and MSMEs.

Chairman of the Indonesian Shopping Center Retailers and Tenants Association (Hippindo) Budihardjo Iduansjah said that currently the domestic retail and industrial business is experiencing difficulties due to the large number of illegal imported goods.

It is also added to the selling price of goods that are very cheap and do not meet security provisions, thus making the state lose. This phenomenon is further exacerbated by the lack of supervision by the authorities in the market.

"Regarding the luggage purchased abroad, we really appreciate this regulation because it can be used as a tightening of domestic products from illegal imports, both from ports and suits through air and sea cargo that do not pay taxes, (so) turn off our SMEs and local products," Budihardjo said at a press conference in Jakarta, Tuesday, March 19.

The regulation referred to by Budihardjo is the Regulation of the Minister of Trade (Permendag) Number 3 of 2024 concerning Amendments to the Minister of Trade Regulation Number 36 of 2023 concerning the Policy for Regulation of Imports, which is not ready to be implemented.

So, it has not been able to prevent legal imports. This actually opens up opportunities for illegal and suitable imports to be carried out.

He considered that the regulation and technical rules for its implementation (pertek) were seen as not yet providing legal certainty for business actors because they provided a wide space for discretion in the permit issuance mechanism.

According to Budihardjo, certainty and clarity of the mechanism or procedures for calculating the granting of permits are needed to protect business actors. Therefore, pertek can be postponed until it is ready.

"However, we also need to remind the general public that socialization should be carried out. Officers at the airport on duty must of course be polite in conducting inspections and also carried out with clear SOPs," he said.

Eradication of illegal imports, including Jastip, he continued, must receive full support from the government. Instead, the public is directed to shop for local goods.

Furthermore, Budihardjo assessed, Indonesia could become a tourist shopping destination. Thus, tourists are also interested in traveling and shopping in Indonesia.

"Because Indonesia can provide competitive prices and a complete collection, so that it can compete with neighboring countries," he said.