VIVAnews - Trade Ministerial Decree No. 56 / 2008 which stipulates exports of five particular commodities has pushed back illegal electronic imports by 10 percent.
According to Indonesian Chamber of Commerce Deputy Chair of Industry, Maritime Affairs and Technology Division Rachmat Gobel, the decree has been effectively reduced electronic smuggling. That is because domestic electronic products absorption has been only 10 percent.
“Especially in facing the ASEAN-China FTA, the government should protect the domestic market, “ the Panasonic President said in Jakarta on Friday, December 4. “The regulation also aims to prevent dismissals due to export decrease”.
With the empowerment of domestic market through the regulation enactment, Gobel assumed Indonesia will be more ready to face the free trade era. Local productions are also expected to significantly escalate, even achieving 200 percent, after the import restriction is reinforced.
“I believe that within one or two years, productions could go up 200 percent as long as they are supported by easy access to banking and infrastructure,” he said.
The next strategy would be dropping investments in electronic component sector to create production basis in Indonesia. Therefore, instead of importing components, Indonesia could even establish domestic market and export-oriented component industry.
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Translated by: Nataya Ermanti
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