The Indonesian Retailers and Shopping Mall Lessees Association, widely known as Hippindo, has voiced its opposition to the recent proposition by the Indonesian government to implement a 200 percent import tariff on Chinese goods. The association has voiced its concerns that the tariff fails to adequately address the pervasive issues of illegal and bulk imports that are disrupting the domestic market.
Haryanto Pratantara, the Secretary General of Hippindo, has brought attention to the unjust repercussions that the proposed tariff would have on legitimate importers who adhere to regulations and significantly contribute to the country’s tax revenue. He has underscored the adverse impact of illegal imports on traditional brick-and-mortar stores, which serve as significant employers and play a fundamental role in the Indonesian retail sector.
A notable issue highlighted by Haryanto pertains to the presence of TikTok Shop’s social commerce, which has encountered scrutiny in Indonesia due to predatory pricing practices aimed at undercutting market prices. He emphasized that these products frequently enter the market through unofficial channels and are sold at reduced prices, posing a threat to domestic industries.
Moreover, Haryanto has emphasized the imperative nature of addressing problematic imports that target lower to middle-income segments in the market. He has called for clarity regarding which imports should be prohibited, as the current approach of imposing broad tariffs on all goods from China may not be conducive to addressing the specific challenges confronted by the Indonesian retail sector.
Furthermore, Haryanto has expressed disillusionment over the government’s failure to take decisive action against illegal products, raising concerns about the ongoing prevalence of these items in the market. He also accentuated the significance of enforcing Indonesian National Standards (SNI) to forestall the circulation of illegal goods in the country.
The Indonesian government’s contemplation of imposing a 200 percent tariff on imported goods, encompassing clothing, steel, and textiles, has instigated a debate surrounding its potential impact on domestic industries. President Joko recently convened with Industry Minister Agus Gumiwang to deliberate the proposed import duty, signifying an imminent decision on the matter within the next two weeks.
Hippindo’s stance on the 200 percent Chinese import tariff underscores the apprehensions of the retail industry regarding the potential repercussions of such a policy. The association’s position underscores the necessity for balanced and targeted measures to grapple with the challenges posed by illegal and bulk imports, while ensuring that legitimate businesses can persevere in contributing to Indonesia’s economic growth. As the government deliberates on the proposed tariff, it is imperative to consider the perspectives of diverse stakeholders in the retail sector to achieve a consensus that aligns with the country’s long-term economic objectives.
Leave a Reply