Tanah Abang Market Sees 50% Drop in Sales, Says SMEs Minister
TEMPO.CO, Jakarta - Indonesian Minister of Cooperatives and SMEs Teten Masduki inspected Tanah Abang Market in Central Jakarta today, September 19, 2023. Tempo observed that Teten and his entourage arrived at Blok A of Southeast Asia’s largest textile market at 11 a.m. He visited a number of shops and talked to traders.
“I've heard that the Tanah Abang market has been quite affected [by the flood of imported products]. I've asked [traders] about the average decline of their sales, which is more than 50 percent,” Teten said.
He explained that the decline in turnover experienced by traders at Tanah Abang Market was due to their inability to compete with imported products sold at cheaper prices albeit they have undergone a transformation, such as by selling online through e-commerce platforms.
“I conclude that their products could not compete because imported products are being sold cheaply,” Teten said.
He also assessed that this condition could be permanent, “although sales will increase at certain times, such as during Eid and the year-end holidays. But it is certain that the effect will be a permanent decline.”
Furthermore, Teten said the government needs to regulate the flow of goods into Indonesia. “[To make sure] that the consumer goods coming into Indonesia are legal or that we are not charging too low import duties,” he said.
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