Minister of Creative Economy Reveals Concerns Regarding Ban on Importing Goods Below Rp 1.5 Million

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The Indonesian Government is strategically planning to implement a ban on the importing goods priced below US$100 or Rp1.5 million, both in the realm of e-commerce and traditional offline marketplaces. This significant policy shift is aimed at fortifying the Micro, Small, and Medium-sized Enterprises (UMKM) against the potential deluge of foreign-made products into the local market. However, while this initiative has garnered support for its protective stance, there are concerns looming around its potential implications.

Eminent figure Sandiaga Uno, the Minister of Tourism and Creative Economy, highlighted a specific apprehension regarding the importing goods regulation’s possible impact on imported raw materials valued below Rp1.5 million.

He pointed out, “It’s important to consider that products priced below this threshold could encompass not just finished goods, but also crucial raw materials that contribute to our domestic production.”

His observations, shared during a well-attended press conference held at the Ministry’s Headquarters on a Monday, indicate a nuanced perspective on the policy’s possible ramifications.

A representative of the United Development Party (PPP), Sandiaga Uno acknowledged the significance of raw materials with a price tag lower than Rp1.5 million, emphasizing their role as essential components often utilized to enhance local manufacturing processes.

Despite this recognition, he underscored the paramount importance of safeguarding the burgeoning MSME sector. “As we bolster the capacities, resilience, and overall vitality of our MSMEs, we need to ensure they are shielded from unfavorable market dynamics,” he affirmed.

Currently in motion, the government is undergoing a revision of the Regulation of the Minister of Trade (Permendag) No. 50/2020, which specifically pertains to Trade Through Electronic Systems (PMSE).

This revised regulation seeks to categorically disallow the sale of imported products valued below US$100 on e-commerce and social commerce platforms. The meticulousness of this endeavor is reflected in the active collaboration between various ministries, including the Ministry of Law and Human Rights (Kemenkumham).

Minister of Trade, Zulkifli Hasan, spoke optimistically about the impending completion of this regulatory evolution. “We anticipate the harmonization process to conclude in this very month, paving the way for an official publication in September 2023,” he asserted with a sense of urgency.

This assurance was voiced during a candid interview held at the Ministry’s Headquarters, encapsulating the government’s commitment to fostering a balanced and protected economic landscape that stimulates domestic growth while cautiously embracing international trade dynamics.”