Sales Of Imported Hijab Reach 1.06 Billion In Indonesia, Where Are The Local Products?

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JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) highlighted the issue of purchasing hijab products from abroad which reached 1.06 billion pcs throughout 2022. As for this amount, domestically made hijab products only reached 25 percent.

This was revealed by the Assistant Deputy for Financing and Investment of SMEs Deputy for SMEs at the Ministry of Cooperatives and SMEs, Temmy Satya Permana, Friday, November 17.

"A total of 1.06 billion pcs of the hijab were purchased by the public in 2022. Of that number, only 25 percent of domestic products are available," said Temmy.

Temmy assessed that the price of the hijab product was very cheap, so the Indonesian people were tempted to buy it.

"We know (Indonesia) can produce hijab, but in fact many foreign products have entered us and that is the entry (price) of Rp. 5,000-Rp. 10,000 to Indonesia," he said.

He also deeply regrets this condition. Moreover, the hijab is one of the products whose production base is in Indonesia. This is also what makes the government continue to appeal to the public to switch to domestically made products.

"Why was our minister angry yesterday, noisy because the products that have been our production base. We, right, are countries with the most Muslim products in the world and more than one person in one month must (buy) hijab," explained Temmy.

"Imagine, right, IKM products from within and outside the country. This has a large potential of approximately Rp. 6 trillion for the hijab market in Indonesia. Well, that's why we encourage if we can switch to domestic products so that they can move," he added.

Therefore, the government issued Regulation of the Minister of Trade (Permendag) Number 31 of 2023 concerning Business Licensing, Advertising, Development, and Supervision of Business Actors in Trade through the Electronic System (PMSE). In addition, the government has also closed cross-border sales.

"As for the hijab, right, the cross border has been closed. Shopee Lazada is closed, but there are still many products that have entered before and continue to be sold on the platform. In the shopee, cheap prices are still found. The point is that there is actually supervision from the Ministry of Trade in this case," he said.

However, this supervision is still manual, so Temmy assesses that digital supervision is needed. In Permendag 31/2023 it is also listed so that there is supervision of items under the HPP.

"Even regarding the HPP policy, we haven't regulated it, there are no rules yet. Actually, how many hijab products are there? It must be regulated. In China alone, HPP is regulated, products or platforms that sell under the HPP are subject to sanctions. So, indeed we have to have one more homework," he explained.

In line with that, Temmy said, the government will evaluate the implementation of this Permendag 31/2023 within 3 months. After that, then look at what needs to be completed, including regarding the determination of the HPP and its import policies.