The Indonesian government is seeking to control the flood of illegal imports by forming a Task Force for Supervision of Certain Goods Subject to Import Trade Rules. Led by the Minister of Trade, the task force comprises 11 Ministries/Agencies and will supervise seven commodities: textiles and textile products (TPT), apparel and apparel accessories, ceramics, electronics, footwear, cosmetics and other finished textile goods.
The task force also responds to complaints from industry players and associations about current business conditions, including competition from illegal imports. In response, Minister of Industry Agus Gumiwang Kartasasmita expressed full support for the formation of the Illegal Import Task Force.
“As part of the government, we see this as an effort to support Indonesia's manufacturing industry as a pillar of the nation's economic strength,” the Minister said in Jakarta on Friday (19/7).
According to Agus, forming the task force, led by the Minister of Trade, to eradicate illegal imports is very important. The key to its success is law enforcement.
“The government already knows the methods of illegal imports used so far. But if this is not followed by serious law enforcement, the commitment to eradicating illegal imports will be just a flash in the pan,” the Minister said.
He stressed that law enforcement must be consistent, not only at the start of the policy or while it is in the spotlight of the public, industry or economists. “Once that attention fades, the (illegal import) practices will reappear. That is what we, and I am sure the Ministry of Trade too, do not want,” the Minister explained.
The Minister also agreed with the proposal to move the entry points for the seven import commodities to ports outside Java, since ports in Java are already over capacity. “Another positive aspect is that moving the entry points can create new economic activity in the regions. This is an excellent proposal and we support it 100%; hopefully it will be approved at the limited cabinet meeting,” he added.
Agus considers both steps good and positive for domestic industry. The agreement between the Ministers of Industry and Trade also shows that the government shares one vision in supporting industry players.
“Businesses and industry players can see that the two ministries spearheading industrial development share one view. So industry players and prospective investors need not doubt that the government is protecting domestic industry for economic recovery,” Agus concluded.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia