Indonesia to Implement Price Regulation on Imported Goods

Protecting Local Industries from Cheap Imports

The Indonesian government is planning to introduce regulations to control the selling prices of certain imported goods that are currently being sold at very low prices in the local market ¹

. The Ministry of Cooperatives and Small and Medium Enterprises (SMEs) is leading this initiative, with discussions ongoing with the Ministry of Trade to finalize the policy ¹

Source 1

https://nasional.kontan.co.id/news/pemerintah-akan-atur-harga-jual-produk-impor-yang-terlalu-murah

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Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8282828/harga-baju-hingga-alas-kaki-impor-china-mau-diatur-ini-bocorannya

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Products Likely to be Affected

The products targeted by this regulation include textiles, footwear, and other basic necessities that are currently being imported at prices considered too low, making it difficult for local producers to compete ²

. The Minister of Cooperatives and SMEs, Maman Abdurrahman, stated that the regulation will be implemented through a Minister of Trade Regulation (Permendag), which will set a minimum selling price for these imported goods ¹

Source 1

https://nasional.kontan.co.id/news/pemerintah-akan-atur-harga-jual-produk-impor-yang-terlalu-murah

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Rationale Behind the Regulation

The rationale behind this policy is to create a fairer competitive environment for Indonesian businesses, particularly SMEs, which are seen as the backbone of the economy. The minister emphasized that the current practice of selling imported goods at very low prices, particularly from China, is making it challenging for local products to compete in the domestic market ¹

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Implementation Details

While the exact list of products to be regulated is still under discussion, the ministry is considering including essential items such as clothing and footwear. The regulation aims to protect local industries by preventing the dumping of cheap imports that could harm domestic producers ²

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