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View all search resultsChinese firms to scrap factory plans following eased imports, trade body warns
Easing the curbs has removed the incentive for foreign companies to build factories in Indonesia rather than sending finished goods.
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Employees arrange products during the opening of Yamada Best in Summarecon Mall in Serpong, South Tangerang city, Banten, on July 11, 2023. The shop is the eighth outlet of the Japanese electronics chain in Indonesia. (Antara/Fauzan)
C
hinese electronics manufacturers may cancel their plans to invest in local assembly facilities, due to inconsistent import regulations set by the government, the Electronics Producers Association (Gabel) has warned.
Gabel’s secretary-general Daniel Suhardiman stated that the import restrictions, which were initially implemented in March, were effective in curbing finished electronic goods from abroad.
However, the recent move to ease the curbs has removed the incentive for foreign companies to build factories in Indonesia rather than sending finished goods.
“There were many plans to shift assembly facilities from China to Indonesia. However, due to the regulatory change, these plans are most likely to be canceled,” Daniel said on Wednesday, as quoted by Bisnis.com.
Read also: Electronics, cable sectors fret over eased import curbs
The government enacted Trade Ministry Regulation No. 36/2023 on March 10, which contained curbs on imports of finished goods, intermediate goods and raw materials across 18 sectors listed in 2,400 categories of the Harmonized System (HS).
Following pushback from businesses, the government issued Trade Ministry Regulation No. 8/2024 on May 17 to relax the number of goods classified as prohibited or restricted under the previous regulation.
