UNS Solo Economist: Indonesian Commodities Must Strengthen Competitiveness

Illustration (Photo: Doc. ANTARA)

JAKARTA - Surakarta Sebelas Maret University (UNS) economist Ernoiz Antriyandardi asked the government to prioritize the competitiveness of the domestic industry over foreign government pressures or praise. "Many Indonesian commodities still have to strengthen their competitiveness, when it is increasingly generalized, the negative impact of international trade will be felt by domestic producers, especially small-scale producers," said Ernoiz Antriyandarti as quoted by ANTARA, Friday, June 21.

He said that the liberalization of trade through the relaxation of imports implemented in the latest trade regulations of Permendag 8/2024 could affect the domestic industrial sector, especially labor absorption.

He argued that as a member of the World Trade Organization (WTO), Indonesia must support trade liberalization, but by remaining careful and protecting domestic producers, especially if the sector loses competitiveness.

"If the relaxation of imports is realized for competitive commodities, it is not worrying. If the relaxation of imports is realized for textile commodities and textile products (TPT), it can trigger further decline in competitiveness, textile factories that close increases, layoffs also increase," he said.

He questioned the purpose of the import relaxation, and wanted further studies so that policies were implemented in accordance with the needs and demands of the community so as not to cause losses. "This momentum can reduce the confidence of domestic entrepreneurs in the government's alignment. The domestic business climate can be disrupted which if allowed will cause seeds of national economic shocks." he said.

Previously, the Minister of Industry Agus Gumiwang Kartasasmita encouraged the application of international trade barriers through "trade remedies" such as the implementation of Safeguard Measure Import Duty (BMTP), as well as Anti-Dumping Import Duty (BMAD) to maintain the domestic textile and textile product (TPT) industry. According to him, it is necessary to collaborate together with the relevant ministries so that "trade remedies" protection for the domestic TPT industry can be realized. "The success of these efforts must be carried out comprehensively, it is not sufficient by the Ministry of Industry itself because its authority is not only at the Ministry of Industry," said the Minister of Industry in Jakarta, Thursday, June 20.