The Industry Ministry is studying the implementation of the Minimum Import Price (MIP) and Price Competitiveness Measure (PCM) trade measuring instruments adopted by India and Switzerland, respectively, to analyze whether they are feasible to maintain local industry's competitiveness.
he Industry Ministry is studying the implementation of the Minimum Import Price (MIP) and Price Competitiveness Measure (PCM) trade measuring instruments adopted by India and Switzerland, respectively, to analyze whether they are feasible to maintain local industry's competitiveness.
The ministry's director general for industrial resilience and international access development, Harjanto, said MIP regulated the price of imported goods so prices could not be lower than locally produced goods. India implemented MIP for its steel industry in February.
"If India can implement it in their steel industry, why don't we?" he said on Thursday.
Providing an illustration, Harjanto said state-owned steel maker Krakatau Steel had been struggling with low steel prices due to the inflow of imported steel from China.
The PCM, meanwhile, was implemented by Switzerland for agricultural products. The import tariff was charged based on the availability of domestic products in the market.
"If domestic stock is abundant, they will increase the import tariff, but if they need to import, they will lower the tariff again," Harjanto said.
Indonesia currently has only 272 non-tariff measures (NTM), a relatively small number compared to its neighbors, including Malaysia and Thailand, which have 313 and 990 NTMs, respectively. Industrialist countries like Japan and China have 1,294 and 2,194 NTMs, respectively. (hwa)
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