President Jokowi’s government is trying to reduce imports of electronic products including air conditioners, televisions, washing machines, refrigerators, fiber optic cables, refrigerators, laptops. This is to protect domestic industries whose production is not yet optimal, but imports are high.
Director of the Electronics and Telematics Industry (IET) of the Ministry of Industry (Kemenperin) Priyadi Arie Nugroho revealed that the utilization of domestic AC production in 2023 was only 43%. This is based on SIINas data in 2023 which states that the production capacity for AC products is 2.7 million units and the realization of production is only around 1.2 million units.
Meanwhile, data from the Surveyor Report states that imports of AC products in 2023 reached 3.8 million units. Therefore, in order to develop the electronics industry in the country so that it can be competitive, the Minister of Industry Regulation (Permenperin) Number 6 of 2024 concerning Procedures for Issuing Technical Considerations for Importing Electronic Products was issued.
“This regulation is a concrete effort by the government to create investment certainty for industry players in Indonesia, especially in the context of producing electronic products domestically,” said Priyadi in his written statement, quoted Tuesday (9/4/2024).
This import flow regulation, said Priyadi, is a follow-up to President Joko Widodo’s (Jokowi) direction regarding the condition of the electronic product trade balance in 2023 which still shows a deficit. Therefore, based on considerations of proposals and the capabilities of the domestic industry, it was determined that there are 139 electronic tariff items regulated in Permenperin 6/2024, with details of 78 tariff items applied with Import Approval (PI) and Surveyor Report (LS) and 61 other tariff items applied only with LS.
“Some of the products included in the 78 tariff items include air conditioners, televisions, washing machines, refrigerators, fiber optic cables, refrigerators, laptops and several other electronic products,” he said.
Priyadi stated that his party understands that the import trade system for electronic products is something new and has never been implemented.
“It should be noted and emphasized together that with the issuance of this electronic product import trade policy, it does not mean that the government is anti-import, but rather to maintain a conducive domestic industrial business climate, especially for products that have been produced domestically,” he explained.
Referring to Permenperin 6/2024, from the implementation of this import trade system, it is hoped that domestic producers can capture the demand for electronic products so as to increase capacity and diversify their product types.
Meanwhile, for Electronic Manufacturing Service (EMS) or Original Equipment Manufacturer (OEM), it creates opportunities for cooperation with international brand holders who do not yet have production lines domestically.
“Meanwhile, for importers, there is certainty of distribution and/or sales of imported goods domestically,” he explained.
Priyadi said that his party hopes that this import regulation can increase the utilization of domestic AC production.
“The Permenperin was also welcomed by domestic electronics manufacturers. This is indicated by several official letters received by the government, from domestic manufacturer associations stating their support,” concluded Priyadi.
source: https://www.cnbcindonesia.com/news/20240409213314-4-529557/impor-ac-tv-mesin-cuci-kulkas-cs-dibatasi-ternyata-gegara-ini