NEWS

Jastip Controversy: Implications Of Import Restrictions And Challenges For The Textile Industry

Entrustment service entrepreneurs, or better known as Jastip, have been in the spotlight in recent times due to protests against the import restriction policy imposed by the government. Amid this controversy, the Indonesian textile industry spoke out about the impacts, along with their views on the legality and economic impact of Jastip's activities.

Chairman of the Indonesian Filament Yarn and Fiber Producers Association (APSYFI), Redma Gita Wiraswasta, emphasized that Jastip's activities were considered illegal because the perpetrators did not pay taxes and did not have the appropriate permits. This statement was made at a press conference in Jakarta on March 18 2024. According to Redma, the government's steps to support the textile industry should be welcomed, while further cooperation is needed to advance this sector.

A similar attitude was also expressed by the General Chair of the Indonesian Textile Association, Jemmy Kartiwa, who highlighted that government policies would not satisfy all parties. According to him, the restrictions applied to passengers' luggage from abroad are reasonable steps, especially to prevent abuse and ensure a fair tax contribution from import activities.

Minister of Trade Zulkifli Hasan, or who is familiarly called Zulhas, explained that the rules governing the purchase of goods from abroad had been updated with the aim of addressing misuse and Jastip business activities that were not in accordance with tax provisions. In this context, the government has updated regulations that limit the number of pieces of luggage that Indonesian travelers can purchase from abroad to a maximum of two.

It is important to note that these import restrictions are not an isolated phenomenon in Indonesia, but rather a policy commonly implemented by many countries. The aim is to protect local industry and ensure that import activities do not harm the domestic economy.

However, discussions around import restrictions and criticism of Jastip also underscore the complexity of the challenges faced by the textile industry. The industry continues to struggle to maintain its competitiveness in the global market, while dealing with internal issues such as inadequate infrastructure and challenges in terms of tax compliance.

In this context, it is important for the government, industry players and society to work together to find fair and sustainable solutions for all parties concerned. This collaborative effort will help create a conducive business environment and support the long-term growth of the Indonesian textile sector.