TEMPO.CO, Jakarta - The Indonesian government is starting to control the flow of imports of two and three-wheeled bicycles through the Trade Minister’s Regulation (Permendag) No.68/2020, which is driven by the fact that consumer product imports have soared.
The regulation has been made effective since August 28, which only allows bicycle imports to be done by businesses with official business registration numbers (NIB).
“The government felt that it needed to alert the industry based on short-term monitoring analysis and prepare strategies that need to be enacted by the domestic industry,” said the Trade Ministry’s director-general of foreign trade, Didi Sumedi to Tempo on September 1.
Didi recorded that May-June 2020 saw imported goods increase by 50.64 percent and noted several specific items that had a value growth of over 70 percent. This requires businesses to have import approvals (PI) and must be verified in loading ports mentioned in the Surveyor Report to verify the product or goods that are imported.
According to the director-general of SME industries, Gati Wibawaningsih, the policy will boost the growth of the domestic bicycle industry. Gati said the policy will spark increases in bicycle retail prices due to the limited supply in Indonesia but she said locally-made bicycles must not be marked-up or see an increase in prices.
“People would be turned off from purchasing imported bicycles because of rising prices. By this, people will switch to local productions,” said Gati Wibawaningsih.
Despite helping boost locally-made bicycles, the Indonesian Bicycling Industry Association (AIPI), Rudiyono, said this policy can boost the domestic bicycle industry but not in the near future.
Meanwhile, the secretary-general of the Indonesian Bicycle Entrepreneurs Association (Apsindo), Eko Wibowo Utomo, argues that the import regulation is premature in its inception as the local industry is yet able to provide enough units for the domestic market.
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