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Businesses fear import restrictions to disrupt raw material shipments
Apindo says Indonesia is still not entirely capable of sourcing all of its inputs domestically, thereby imports of some raw materials are still necessary.
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Textile industry scholarship recipients of a program run by the Industry Ministry practice yard spinning at the the Surakarta Academy of Textile and Textile Product Industry Community at the Solo Techno Park (STP) in Surakarta, Central Java on March 31, 2020. (ANTARA FOTO/Maulana Surya)
T
he Indonesian Employers Association (Apindo) has voiced concern that the government’s import restrictions are disrupting the supply chains of raw materials needed by domestic industries.
Shinta W. Kamdani, chairwoman of Apindo, said the country was not capable of sourcing all its inputs domestically, therefore these imports were still necessary.
Moreover, the local capacity of upstream industries is extremely limited in producing raw materials and auxiliary materials, she said.
“Apindo is concerned that the restrictions could disrupt the supply chains of several domestic industries,” Shinta said in a statement on Monday.
The regulation in question is Trade Ministerial Regulation No. 36/2023, which stipulates changes to import supervision from after the goods arrive in the country, as previously, to before arrival now. The regulation is set to come into force on March 10 after a 90-day transition period.
Read also: Govt places extra import duties on bicycles, watches, cosmetics
Apindo argued that some items listed in the policy should be altered to facilitate the importation of raw or auxiliary materials.
