A new task force spearheaded by Indonesia’s Ministry of Trade aims to address illegal imports and dumping practices, safeguarding domestic industries from unfair competition.
Major discrepancies between reported imports and exports highlight the problem’s severity. Trade Minister Zulkifli Hasan cited data showing a stark difference: exporting countries record $360 million worth of exports, while Indonesia’s data shows only $116 million of imports. This discrepancy marks the urgency of the task force’s mission.
Identified categories of concern include textiles, ready-made garments, accessories, ceramics, electronics, footwear, and cosmetics. The task force expects robust support from the attorney general’s office to combat the illegal influx of these goods.
Illegally imported products have overflowed to the domestic market through unsupervised seaports, often sold at predatory prices, leading to factory closures, reduced state revenues, and widespread layoffs. Franciska Simanjuntak, head of the Indonesian Trade Security Committee, noted Indonesia’s leading role in implementing anti-dumping measures within ASEAN.
Danang Prasta Danial, chairman of the Indonesian Anti-Dumping Committee, recently proposed increasing anti-dumping duties on Chinese ceramic tiles, presenting evidence of unfair trade practices that have led to industry collapses and job losses for 3,000 workers.
Despite these efforts, challenges persist. Mohammad Faisal, executive director of the Center for Reform on Economics, argued that import duties offer only a temporary solution, failing to address underlying issues. He stressed the need to boost local industry competitiveness and improve the monitoring of illegal seaports. Faisal recommended establishing a permanent task force comprising Customs, police, and military personnel for more effective oversight.
The Customs and Excise office reports over 1,000 operational illegal seaports in Indonesia, with approximately 500 in eastern Sumatra, used frequently for smuggling goods, complicating import regulation efforts.
The task force, including officials from the Trade Ministry, prosecutors, police officers, and members of the Indonesian Chamber of Commerce and Industry, aims to enforce stricter controls and reduce illegal imports, protecting Indonesia’s domestic market and economy.
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