Textile entrepreneurs in Indonesia are currently feeling deep disappointment. The main cause is the government's decision to overhaul import regulations through Minister of Trade Regulation (Permendag) No 8/2024. This revision amends Minister of Trade Regulation No. 36/2023 concerning Import Policies and Regulations, with implementation starting May 17 2024. One of the significant changes is the elimination of the Technical Consideration (Pertek) requirement for obtaining Import Approval (PI).
The government stated that this revision aims to overcome the buildup of imported goods containers at the Ports of Tanjung Priok and Tanjung Perak, which is thought to be caused by a domino effect from the implementation of Pertek under Minister of Trade Regulation No. 36/2023. However, the Ministry of Industry (Kemenperin) denied this claim, stating that they did not know the contents of the piled up containers and asked for evidence that the containers contained raw materials and auxiliary materials which disrupted the domestic manufacturing supply chain.
Criticism from Textile Entrepreneurs
The General Chair of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), Redma Gita Wirawasta, stated that Minister of Trade Regulation No. 36/2023 was indeed the cause of the accumulation of imported containers at ports. However, he emphasized that these regulations had been socialized since December 2023 and came into effect on March 10 2024. According to him, this backlog occurred because there were importers who did not comply with the regulations and deliberately imported goods without obtaining the appropriate permits.
Redma criticized the government's steps which were deemed to facilitate rogue importers. "So it's strange, isn't it? How come the government facilitates naughty importers?" he said. He added that the government could no longer expect investment from the textile sector if policies like this continued. In fact, he threatened that many employees would lose their jobs as a result of this policy.
Presidential Directions and Sri Mulyani's Responsibilities
Redma also touched on President Joko Widodo's directive on October 6 2023 which asked for import restrictions and controls to be implemented. However, he felt that the Ministry of Industry's vision of industrial development and integration was not supported by other ministries, including the Ministry of Finance led by Sri Mulyani.
He emphasized that if deindustrialization occurs, Sri Mulyani must be held responsible because he is deemed to have failed to handle problems at Customs and Excise, the victims being the domestic industry. Redma believes that of the 26,000 containers that have piled up, the majority contain imported goods from traders, which is disrupting the upstream and downstream industrial supply chains in Indonesia.
Questions on Government Partisanship
Redma questioned the government's partiality in spurring the development of the domestic manufacturing industry. He believes that the government's reasons are classic reasons and if policies like this continue, domestic industry will never develop. Redma concluded with pessimism regarding the future of investment in Indonesia's manufacturing sector if import policies are not immediately improved.
The disappointment expressed by textile entrepreneurs reflects deep dissatisfaction with the government's latest import policy. They demand real action and the government's support to support the growth of the domestic manufacturing industry, as well as ensuring that the regulations made do not harm industry players who comply with the rules. It is hoped that the government can find a fairer and more effective solution in dealing with import problems and industrial supply chains in Indonesia.