JAKARTA - The Business Competition Supervision Commission (KPPU) highlighted imported products that flooded Indonesia. This condition is considered to threaten the sustainability of local product businesses. A series of government regulations are considered unable to prevent the entry of imported goods.
KPPU has also held meetings with various parties to discuss the rise of imported goods entering Indonesia. For example, the Ministry of Industry, the Ministry of Trade, the Ministry of Cooperatives and MSMEs, the Directorate General of Customs and Excise, and various associations in the industrial sector.
KPPU member Eugenia Mardanugraha said the rise of imported products in Indonesia can be seen from various sectors, ranging from electronics, textiles, to food and beverage products.
Based on data from the Director General of Customs and Excise, continued Eugenia, the value of Indonesia's imports continues to increase, especially from countries such as China, Hong Kong, and Japan. Products from these countries are known to have competitive prices and good quality, thus attracting Indonesian consumers.
"The attack on imported goods at low prices into the Indonesian economy is a phenomenon of competition that is too fierce and threatens the sustainability of domestic business actors," he said in an official statement, Wednesday, May 29.
He revealed that the negative impact due to the flood of imported products was the decline in domestic production, the decline in gross domestic product (GDP), and ultimately reducing people's welfare.
Furthermore, Eugenia said the Indonesian government itself has various instruments to stem the flood of imported goods at very low prices, including Import Duty, Anti-Dumping Import Duty (BMAD), Safeguard Measure Import Duty (BMTP), Import Approval, National Quality Standards, Import Quota, and so on.
"However, these various instruments are not enough to stem the entry of imported goods at low prices," explained Eugenia.
Meanwhile, the Secretariat of the Deputy for Small and Medium Enterprises at the Ministry of Cooperatives and MSMEs, Koko Haryono, said that around 83 percent of goods entering Indonesia in 2022 through e-commerce costs below 100 US dollars per unit.
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Then, the government through the Ministry of Trade issued Permendag No. 31 of 2023 concerning PMSE to limit the sale of direct imported goods (cross border imports) on digital platforms with various requirements.
Koko said efforts to increase sales of local products on digital platforms had also been carried out, including by providing promotional room facilities.
"In addition, to increase sales of local products, it is carried out through partnerships with digital companies, go-digital MSME programs, modern cooperatives, and MSMEs in E-Catalog," he said.
Meanwhile, a representative from the Sub-Directorate of Intelligence, Directorate General of Customs and Excise, Sugeng, stated that since the Permendag 31 of 2023, imports of goods through e-commerce have decreased. Other policies that can be done include the implementation of safeguards and counterfalling duties.
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