Minister Of Industry Agus Asks Permendag 8/2024 To Be Revised Again, Why?

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Theresia Agatha/VOI)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita asked for a revision of the Regulation of the Minister of Trade (Permendag) Number 8 of 2024 to overcome the flood of imported goods to the country.

Agus assessed that if there were restrictions on imported goods, later the price of domestic manufactured products could increase, thus encouraging production demand.

"It's simple supply and demand, right. As soon as demand goes up, inflation is lacking, once the supply goes down, the demand goes down deflation. Supply doesn't go down. Now, supply is from imported goods," said Minister of Industry Agus when met at his office, Thursday, October 10.

"The supply was imported goods. This is simple from manufacturing glasses. That's what causes deflation," he continued.

He did not deny that currently people's purchasing power is decreasing. However, Agus said, this could not be separated from the flood of imported goods to Indonesia.

"The purchasing power, right, is reduced. I agree (approved). So, the demand is reduced. This is in manufacturing glasses, here, the demand is reduced, but the supply is not reduced," he said.

Agus assessed that the flood of imported goods must be resolved immediately. One of them is by revising the Minister of Trade Regulation 8/2024.

"What is the government's move? I, really, want a revision of Permendag 8," he said.

Not only that, Agus assessed, it is necessary to make policies to complicate the entry of imported goods with the transfer of entry ports or entry points for imported goods to eastern Indonesia.

"Secondly, I consistently want the entry point to be shifted to the east (Indonesia). This is to make it difficult (to enter) imported goods," said Agus.

According to him, this will restrain the entry rate of imported goods.

Thus, prices for domestic goods and services can again compete. The hope is that it can again encourage people's purchasing power.

"So, the flood of items (imports) is at least delayed. (Imported goods) will also enter Java, but at least it will be delayed and at least increase the price or cost. At least," he concluded.

The Central Statistics Agency (BPS) noted that there was a deflation in September 2024 of 0.12 percent on a monthly basis or month to month (mom). This figure is higher when compared to August 2024, which is 0.03 percent.

Acting (Plt) Head of BPS Amalia Adininggar Widyasanti said deflation in September 2024 was deeper than in August 2024.

"There was a decline in the consumer price index from 106.06 in August 2024 to 105.93 in September 2024," he said at a press conference in Jakarta, Tuesday, October 1.