The Import Restriction Policy Might Lead to Scarcity of Imported Luxury Branded Goods Stock

Imported Luxury Branded Goods Stock
The Import Restriction Policy Might Lead to Scarcity of Imported Luxury Branded Goods Stock

The government’s recent move to restrict imports has sparked widespread interest among various stakeholders. Concerns have been raised about the potential scarcity of imported luxury branded goods in Indonesian markets due to this policy, which stems from legal uncertainties.

Budihardjo Iduansjah, the Chairman of the Indonesian Retailers and Shopping Mall Lessees Association (Hippindo), attributes this concern to uncertainties surrounding Minister of Trade Regulation (Permendag) No. 3/2024, which amends Permendag No. 36/2023 regarding Import Policies and Regulations.

To address these concerns, Budihardjo suggests a sensible approach of postponing the implementation of Permendag No. 3/2024. He emphasizes the need to facilitate the availability of imported luxury branded goods and raw materials for Indonesian manufacturers to ensure a robust supply chain, thus potentially positioning Indonesia as a shopping haven.

Handaka Santosa, Chairman of the Indonesian Global Brand Retailers Association (Apregindo), echoes similar sentiments. He expresses concerns about potential disruptions in retail sales, particularly during critical periods like Eid, which sees significant shopping activity.

Handaka recommends that the government delay the implementation of the regulation to allow for further clarification and consultation, especially regarding the verification process of inspection report results (LHP).

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He emphasizes the potential impact on government revenue, highlighting the importance of maintaining a conducive environment for domestic consumption. Handaka notes that affluent individuals may seek alternative shopping destinations abroad if certain goods become scarce domestically.

In related developments, the Indonesian government is set to enforce import restrictions through Minister of Trade Regulation No. 36 of 2023 concerning Import Policies and Regulations. This regulation, effective from March 10, 2024, is being rolled out with support from Soekarno-Hatta Customs.

The restrictions primarily target imported goods carried by passengers on aircraft. Among the affected items are footwear, bags, finished textile goods, electronic devices, as well as mobile phones, handheld devices, and tablet computers.

Passengers are now subject to limits on the quantity of certain goods they can bring into the country. For example, the import of footwear is capped at two pairs per person, while bags are restricted to two items per passenger.

Similarly, passengers are limited to carrying up to five items of finished textile goods. Electronic devices, including mobile phones and tablets, are also restricted to a maximum of five units per passenger, with a designated value threshold.

Furthermore, the import of mobile phones, handheld devices, and tablet computers through passenger channels is restricted to two items per passenger within a one-year timeframe. These measures aim to manage import flows and ensure the availability of goods in the domestic market.