The government's plan to set minimum reference prices for imported goods is considered an inadequate solution to the fundamental problems facing the national textile industry. The Indonesian Filament Fiber and Yarn Producers Association (APSyFI) believes the policy is still more focused on increasing state revenue than on providing real protection for the domestic industry, which is being pressured by a flood of cheap imported products.
APSyFI Chairman Redma Gita Wirawasta believes that setting minimum prices does have the potential to increase state revenue and curb unfair trade practices, particularly under-invoicing. However, this policy is considered ineffective in addressing the dumping problem, which has long been a serious threat to the local textile industry. According to Redma, dumped products have been produced at very low costs in their countries of origin, thus remaining competitive despite the minimum reference price regulation.
This situation allows dumped imported products to continue flooding the domestic market and suppressing the competitiveness of the domestic industry. For dumped products, the minimum price policy is considered to only increase tax liabilities without changing the real price structure in the market. As a result, selling prices to consumers remain low and do not provide significant protection for local producers.
Nevertheless, APSyFI acknowledges that the minimum reference price policy has a positive aspect in enforcing trade regulations. This policy is considered to be detrimental to importers who have been exploiting loopholes through under-invoicing practices, while simultaneously improving import governance. Therefore, APSyFI encourages the government to complement this policy with other instruments, such as strengthening anti-dumping supervision and a more comprehensive trade policy.
Meanwhile, the government, through the Ministry of Micro, Small, and Medium Enterprises (MSMEs), is still reviewing plans to regulate reference prices for super-cheap imported goods entering Indonesia. This policy is designed to protect local products so they can compete fairly in the domestic market. MSME Minister Maman Abdurrahman stated that discussions are still ongoing with the Ministry of Trade and no final decision has been made.
According to Maman, the influx of cheap imported goods, particularly from China, has put significant pressure on local products due to significant price differences. This situation makes it difficult for MSMEs to compete and has the potential to disrupt business continuity if not addressed. The government emphasized that this policy is not intended to prohibit imports, but rather to create fair competition so that domestic products are not eliminated in the domestic market.