Indonesian Trade Regulation Storm: Joint Working Group Strictly Investigates Seven Major Commodities

The joint working group strictly inspected seven categories of goods

On July 15, Indonesian media reported that the Indonesian government will soon set up a special task force (Satgas) to monitor illegal imported goods under the supervision of the Ministry of Trade. This task force is composed of 19 ministries and agencies, including the Prosecutor's Office, the Police Department, the Ministry of Trade, the Ministry of Industry, and the Chamber of Commerce. It will inspect and supervise imported goods such as textiles and their products, ready-made clothes, ceramics, electronic products, cosmetics, finished textiles and footwear. It aims to combat illegal imports and infringement and counterfeiting, and maintain market order and consumer rights. It can be said that in essence, it is still necessary to protect Indonesian local enterprises.

The inspection is expected to last for one month, with the first week being the most stringent. At present, some shops and warehouses selling illegal goods have been sealed. According to feedback from service providers, Indonesia's warehouse inspections are currently very strict, and many warehouses have suggested that sellers close their businesses for a week to avoid the limelight. From this, it can be seen that the warehouse inspection situation is severe. Some Chinese entrepreneurs said that the Indonesian government has recently stepped up searches of warehouses and stores. Especially in the textile wholesale market, no one involved in textiles can get away. In Pik, Jakarta, warehouses around Tangerang, the police will begin to visit in plain clothes. Customers in this area should be careful and keep a low profile recently. Some policemen will bribe local security guards to ask if there are any trucks coming in and out frequently. Some even go to the docks to track containers. According to the announcement of the Indonesian Ministry of Trade (July 6), the government will implement anti-dumping duties and safeguard duties on seven major imported goods to protect domestic industries.

These seven goods include textiles and their products, ready-made clothes, ceramics, electronic products, cosmetics, finished textiles and footwear. Minister of Trade Zulkifli Hasan said that the implementation of anti-dumping duties and safeguard duties is to respond to the impact of imported goods on the local market and ensure the sustainable development of local industries. These measures will be adjusted and implemented based on the monitoring and evaluation results of the Indonesian Trade Safeguard Committee (KPPI) and the Anti-Dumping Committee (KADI). The specific tax rate will be determined based on the import volume of the product and its impact on the domestic market, and may be between 50% and 200%. In addition, these measures will apply to all importing countries, not just a specific country (China). At present, the Ministry of Trade's main focus is on these seven goods, but it may also consider taking similar measures on other types of goods in the future. No one knows when this strict inspection will end. Anyway, the recent period is the most strict. Even many shipping companies have closed down and dare not deliver goods.

For friends doing business in Indonesia, the situation is really strict during this period! So I suggest that you temporarily close the store and keep the warehouse quiet. Don't mess around. In the final analysis, legal and compliant operation is the kingly way. Otherwise, it's like dancing on a tightrope, and sooner or later something will happen.