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Retailers oppose shifting imports of textiles, other goods to eastern ports
Hippindo has urged the government to consider tighter supervision and enforcement at ports of entry to tackle illegal imports, arguing that the Industry Ministry's plan to shift the destination zone to eastern Indonesia might only pass higher logistics costs on to consumers.
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A tugboat tows a cargo barge on May 20, 2024 at Tanjung Priok port in North Jakarta. (Antara/Dhemas Reviyanto)
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omestic retailers have expressed opposition to importing certain goods through ports in eastern Indonesia rather than on Java, a plan the government says is aimed at curbing shipments of foreign-made goods that threaten local industries.
The proposed change in the geographical region where freight is shipped would affect imports of textile, apparel, ceramics, electronics, footwear, cosmetics and related products.
The Indonesia Retail and Tenant Association (Hippindo) said that while it supported the government’s goal of promoting nationwide regional development, changing the destination zone might not be the most effective solution to clamp down on illegal imports.
“Changing [the destination zone] could place a burden on both the retail and manufacturing industries,” Hippindo chairman Budihardjo Iduansjah said in a statement on Thursday.
Read also: Govt to relocate textiles, ceramics import points to eastern Indonesia
Budihardjo said some potential challenges posed by the proposed policy included higher operating costs, including for transportation and distribution, which could in turn drive up consumer prices due to the less developed infrastructure in eastern Indonesia.
“If the cost of goods continues to rise due to elevated logistics costs, consumer purchasing power will decline and domestic spending targets will be hard to meet,” he said.
