Indonesia Considers Relocating Import Entry Points to Strengthen Local Industries

Proposed Policy to Curb Import Surge

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, is set to meet with Finance Minister Purbaya Yudhi Sadewa to discuss a proposal to relocate import entry points or entry points for imported goods. This policy aims to mitigate the surge in imports coming through various ports and bolster the country's economic defenses. The move is expected to have significant implications for Indonesia's trade policies and local industries.

Strengthening Non-Tariff Measures

The proposed policy is also seen as a way to strengthen Indonesia's non-tariff measures (NTM), which are currently deemed insufficient compared to international standards. Agus Gumiwang highlighted that Indonesia has only about 207-209 NTMs, with approximately 30% directly related to the manufacturing sector. The remaining NTMs are applied to agricultural, plantation, fisheries, and livestock sectors. This number is considered low when compared to other countries, such as the United States, which has a more extensive array of NTMs.

Protecting Local Industries and Jobs

The Minister emphasized that enhancing NTMs is crucial for protecting national industries and preserving employment opportunities. By implementing more robust NTMs, Indonesia can better shield its domestic market from excessive imports, thereby supporting local businesses and workers. This move is part of a broader strategy to fortify the country's economic resilience in the face of global trade dynamics.

Implications for Economic Policy

The proposed relocation of import entry points and the strengthening of NTMs reflect a significant shift in Indonesia's economic policy. By taking these measures, the government aims to create a more controlled and regulated environment for imports, which could have far-reaching effects on the country's trade balance and economic growth. The upcoming meeting between the Minister of Industry and the Finance Minister is highly anticipated, as it is expected to provide more clarity on the implementation and potential impact of these policies.