Monique Handa Shafira, Jakarta – The Indonesian Retailers and Shopping Mall Lessees Association (Hippindo) has voiced concerns over the government's plan to impose a 200 percent import tariff on Chinese goods, arguing it fails to address rampant illegal and bulk imports.
"Because illegal imports go unreported and evade regulations, legitimate importers – who pay taxes, VAT, income tax, and import duties – are unfairly penalized, despite operating brick-and-mortar stores that employ a significant workforce. This solution does not effectively target the core issues," said Haryanto Pratantara, Secretary General of Hippindo, in Jakarta on Friday.
Haryanto cited various types of imports disrupting the domestic market, such as TikTok Shop's social commerce, briefly banned in Indonesia due to predatory pricing practices aimed at undercutting market prices.
He noted that many TikTok Shop products enter through unofficial channels, selling at lower prices, which undermines domestic industries.
"We need to clearly address problematic imports like these, especially those targeting lower to middle-income segments, where Indonesia can compete with legally imported products. We also need clarity on which imports should be banned, as the current broad strokes include everything, which isn't the case," he added.
Haryanto expressed disappointment in the government's lack of action against illegal product crackdowns, fearing open sales of these imports.
"Moreover, some products must meet Indonesian National Standards (SNI) and others. These are clearly illegal items I mentioned, so why are they allowed?" he concluded.
Indonesia is mulling over imposing a 200 percent imported goods such as clothing, steel, and textiles, citing challenges faced by domestic industries competing against cheaper imports from China.
President Joko summoned Industry Minister Agus Gumiwang to the Presidential Palace on Tuesday to discuss the proposed import duty. The minister said that President Jokowi has set a two-week deadline to finalize progress on the plan.