House: Import Regulations for Producers Should Be Revised

Commisson VI of the House of Representatives urged Gita Wirjawan, Minister of Trade, to revise import regulations for producers, after the Supreme Court (MA) revoked  Article 2 (1) in conjunction with 3 (3) of Minister of Trade Regulation No. 39 of 2010 on Import Provisions for Finished Goods.

MA held that Article 2 (1) of the Regulation is not binding. MA asserted that the Regulation only considers accelerating investment, without thinking about natural and human resources. Furthermore, MA said the Article highlighted how domestic products are unable to compete in the global market.

Ecky Awal Muharam, member of Commission VI, said that the government has to respond to MA’s decision to improve the import regulation. “Imports of finished goods should have a set deadline, so foreign producers of components produce their goods in Indonesia,” said Ecky, a politician from the PKS faction.

He explained that many foreign producers have been operating in Indonesia for  years, but they import the main components of goods. The government should find a way to entice these producers to produce the components in Indonesia.

“We can’t let them import 90 percent of the components, and only assemble, repackage, and market products in Indonesia. The benefit is too small,” he added.

The Indonesian Chamber of Commerce and Industry (Kadin) applauded MA’s decision.  Natsir Mansyur, the Deputy Chairman of Commerce Distribution and Logistics at Kadin, said that MA’s decision is correct, since the regulation created a strong reaction from businesses.

Natsir said that Mari Elka Pangestu, the previous Minister of Trade, was being self-centered when she was issued this policy. He hopes MA’s decision will be a lesson for the new Minister, so that businesses will be consulted before new policies are implemented. “It’s a shame if policy making is done single-handedly,” he said.

However, Mari Elka said that the Regulation is aimed at improving the investment rate and not restricting domestic companies from makin investments. She asserted that the Ministry of Trade already considered many factors and had extensive discussions before the Regulation was issued.

Meanwhile, Gita Wirjawan claimed he isn't taking MA’s decision too seriously. He confirmed that many foreign investors prefer to keep on importing goods, because they are unable to produce the goods in Indonesia.

“There has to be an agreement on this issue. I will revise the Regulation in accordance  with MA’s decision, but without any negative impact on investors,” Gita concluded.

(M Agus Yozami / Mahinda Arkyasa)