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Import curbs hamper business, to investors’ dismay
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Delivered: Goods are unloaded from a cargo vessel at the Jakarta International Container Terminal of Tanjung Priok Port in North Jakarta on March 24, 2024. (Antara/Muhammad Adimaja)
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ew import restrictions are roiling supply chains and causing concern among companies including foreign investors in the automotive and electronic industries, who are warning of stockouts and temporary production stoppages.
The curbs affecting finished goods, as well as intermediate goods and raw materials categorized under 2,400 harmonized system (HS) codes across 18 sectors, have set off alarm bells among businesses and prompted business chambers to request a reassessment.
“We completely support the regulation’s objective to block illegal imports, but we need to find a much more workable system,” American Chamber of Commerce in Indonesia (AmCham) managing director Lydia Ruddy told The Jakarta Post on Thursday.
While the policy applied to many sectors, “it has become a huge problem for many foreign companies especially in textiles and footwear, electronics, health supplements, cosmetics and tires,” she continued.
Companies reliant on imported products with no suitable domestic alternatives would be hurt, she continued, noting that some AmCham member firms were unable to conduct necessary imports and were having permits denied.
If the issue persists, “this will dampen investment appetite,” warned Ruddy.
Read also: New import rules hoped to save ailing textile industry
