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Govt tightens imports of sought-after bicycles, shoes during pandemic
Newly issued Trade Ministerial Regulation 68/2020, which took effect on Aug. 28, requires businesses to obtain import approval (PI) for the imports of bicycles, footwear and ACs.
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Jakartans ride bicycles on Jl. MH Thamrin in Central Jakarta on June 30. (Antara/Nova Wahyudi)
T
he government has tightened import rules on consumer goods that are in high demand during the pandemic, while experts warn about the readiness of local manufacturers to provide sufficient supply.
Newly issued Trade Ministerial Regulation 68/2020, which took effect on Aug. 28, requires businesses to obtain import approval (PI) for the imports of bicycles, footwear and ACs.
As there was no previous trade regulation on bicycles import, importers of footwear and AC only had to provide a surveyor’s report (LS).
The monitoring mechanism will now take place within the customs area or post-border. There are also specific points of entry allowed to import the goods for land, air and sea transport, including Tanjung Priok Port in North Jakarta and Soekarno-Hatta International Airport in Tangerang, Banten.
The new rule came as the demand for bicycles surged during the pandemic, as people use bicycles to commute and for exercise amid the loosening of social restrictions. The import value for bicycles rose by 24.8 percent year-on-year (yoy) in the first half of 2020 to US$39 million, according to the Indonesian Association of Bicycle Companies (Apsindo), citing Statistics Indonesia (BPS) data.
Apsindo chairman Eko Wibowo Utomo said on Tuesday that while the regulation might benefit local industries, the tighter import regulation may limit supply of bicycles at a time when demand is high and, therefore, cause a shortage.
“For the past month, distributors and importers are forced to survive as their supplies are dwindling,” Eko told The Jakarta Post in a phone interview. “With supply falling while the demand is still high, prices will soar.”
