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Influx of imported goods sold online hurts SMEs: Apindo
The Indonesian Employers Association (Apindo) has welcomed the government’s move to lower the tax threshold on goods imported for retailing on e-commerce platforms.
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idEA public policy and government relations manager Rofi Uddarojat (second left), the head of the permanent committee for domestic trade at the Indonesian Chamber of Commerce (Kadin), Tutum Rahanta (third left), the chairman of the Indonesian Employers Association (Apindo), Hariyadi Sukamdani (center), and Budihardjo Iduansjah, the chairman of the Indonesian Shopping Center Tenants Association (second right) attand a press conference in Jakarta on Thursday. (JP/Eisya Eloksari)
T
he Indonesian Employers Association (Apindo) has welcomed the government’s move to lower the tax threshold on goods imported for retailing on e-commerce platforms, saying the policy was the right step to protect small and medium enterprises (SMEs) against imported consumer goods.
Apindo chairman Hariyadi Sukamdani said the sharp increase in foreign products sold through online marketplaces had severely hurt local producers because of a lack of protection from the government.
He said the number of imported goods sold through e-commerce platforms had increased to 57.9 million items in 2019 from only 19.5 million in 2018 and 6.1 million in 2018.
“If e-commerce retail products keep coming in, it will severely hurt our SMEs,” he said during a press conference on Thursday, adding that the government’s new import tax regulation was an appropriate move to tackle the issue.
Finance Ministry Regulation No.199/2019 lowers the threshold for taxing consumer goods imported for retailing on e-commerce platforms to just US$3 from $75 previously. The regulation will take effect on Jan. 30.
The government imposes an import duty of 7.5 percent in addition to value-added tax of 10 percent on e-commerce sales of imported goods.
However, the new import tariff will not apply to bags, shoes or garments, which will be subject to normal tariffs. Books will also be exempted from the tax.
