Retail Entrepreneurs Call 200 Percent Customs Is Not Right To Protect Retail From Illegal Imports

Imports of Raw Materials (Photo: Antara)

JAKARTA - The plan to apply 200 percent import duties to imported products is considered an inappropriate solution to protect the retail industry from massive illegal imports. Secretary General Hippindo Haryanto Pratantara in Jakarta, Friday said, precisely with the realization of the plan will make products sold in the retail sector lose competitiveness. This is because the problem at the root of the retail industry is the rampant illegal imported products circulating in the domestic market. "The solution that we are currently hearing from the government is to increase import duties by 200 percent, then there is a safeguard or additional import duty, and so on. In our opinion, if the issue was illegal imported goods, this solution is not on target," he said, quoting Antara. He explained that if this policy was implemented, the importers in the retail sector would be burdened by having to pay a bigger tax, so that if it continued could have an impact on the decline in profit value.

On the other hand, for illegal importers, this can be used as a moment to strengthen dominance in the domestic market. This is because illegal goods do not meet regulations, and are not subject to taxes, so they can sell their products cheaper. "So if the main problem is illegal imports," he said. Furthermore, Deputy I of Domestic Trade Hippindo Hasan Aula said that his party oversees as many as 800 retail brands with a total workforce reaching more than 600 thousand people. So that if the regulation on tightening international trade is implemented but does not participate in eradicating illegal imports, it could affect the promotion of the national economy.

"So if we can't protect retailers from being able to trade and expand our business, our economy can also be disrupted. As the government has said before, more than 52 percent of their economic growth comes from consumption. This retailer is the one who continuously supports how consumption occurs," he said. Previously, Hippindo wanted the government to form a special task force (task) to handle illegal imports, in order to maintain the competitiveness of the retail sector. "So this really needs the government to provide the right solution, namely by making the correct law enforcement and now the situation is urgent. Must make a task force that focuses on how the entrance of these illegal goods can be closed as much as possible," said Secretary General Hippindo Haryanto Pratantara.