The Indonesian Retailers and Shopping Mall Lessees Association, known as Hippindo, vehemently opposes the government’s proposition to implement a 200 percent import duty on Chinese goods. The association contends that this measure fails to effectively tackle the pervasive issue of illicit and large-scale imports, which have had adverse effects on the domestic market.
Haryanto Pratantara, the Secretary General of Hippindo, asserted that the current strategy unfairly penalizes lawful importers who adhere to regulations and fulfill their tax and duty obligations. He stressed that these importers, who operate physical stores and create significant employment, should not be held responsible for the illicit actions of others.
Haryanto underscored the detrimental impact of unlawful import practices, such as those witnessed with TikTok Shop’s social commerce, which was momentarily prohibited in Indonesia due to predatory pricing tactics aimed at undermining market prices. He noted that numerous TikTok Shop products enter the country through unofficial channels and are sold at reduced prices, undermining domestic industries.
According to Haryanto, it is imperative to specifically target problematic imports, particularly those aimed at the lower to middle-income segments where Indonesia can compete with legitimately imported products. He also emphasized the necessity of clear guidelines regarding which imports should be prohibited, rather than implementing broad measures that encompass all goods.
The Secretary General of Hippindo expressed disappointment in the government’s inaction against crackdowns on illegal products and raised concerns about the unrestricted sale of these imports. He also queried why specific products that do not meet Indonesian National Standards (SNI) are permitted to be circulated in the market.
The Indonesian government is deliberating the imposition of a 200 percent import duty on items such as clothing, steel, and textiles, citing the challenges faced by domestic industries contending against cheaper imports from China. President Joko Widodo summoned Industry Minister Agus Gumiwang to discuss this proposed import duty and has set a two-week deadline to finalize progress on the plan.
Hippindo’s opposition to the substantial tariff increase mirrors the apprehensions of lawful importers and the broader retail industry regarding the possible repercussions of such a policy. The association’s stance underscores the need for a more comprehensive and targeted approach to address illicit and large-scale imports, as well as to support domestic industries in a equitable and effective manner.
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