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Perprindo Emphasizes To The Ministry Of Industry Four Key Points Regarding The Relocation Of Import Entry Routes
Thursday, 29 Aug 2024
PERPRINDO (Indonesian Refrigeration Companies Association) has shared its thoughts on the government's policy discussions aimed at boosting the competitiveness of local industries, especially regarding the seven commodities that will have their import routes shifted to eastern ports like Sorong, Bitung, and Kupang. They back the Minister of Industry, Agung Gumiwang Kartasasmita, in proposing this change, as it could positively impact various sectors by reducing the influx of imported goods in Indonesia and alleviating job losses in certain industries. However, it's crucial to consider other sectors, particularly the cooling and refrigeration industry, since local production isn't yet meeting domestic demand. Additionally, some refrigeration products aren't produced locally, leaving no local substitutes. Dewanti, the Chair of the Legal and Regulatory Division at PERPRINDO, pointed out that with the proposed shift of import routes to eastern Indonesia, the Ministry of Industry and the government need to focus on four key pillars for the cooling and refrigeration sector. First, there should be adequate infrastructure at the eastern ports, including facilities and transportation to Java. Second, high logistics costs for items that can't be produced locally or that don't meet domestic quantity and quality needs must be addressed. Third, it's important to avoid reciprocal measures or lawsuits from the WTO, as Indonesia has previously faced legal challenges over port restrictions and lost. Dewanti cautioned the government to ensure that new policies don't lead to further WTO disputes. Lastly, a deeper analysis of the effectiveness and impact of this policy on local industries is necessary.
Perprindo is hoping that the Ministry of Industry and the Government will consider and approve the exemption for the import entry routes for certain cooling and refrigeration products, or specific HS Codes related to these products, which were discussed during the meeting with the Ministry of Industry on Monday, August 19, 2024. They also wish for the Ministry of Industry and the Government to create policies and regulations that can be effectively implemented in the field. Wasekjen PEPRINDO, Heriyanto, suggested that if the government decides to go ahead with this policy, a grace period of at least six months should be provided so that businesses can prepare accordingly.
