The Ministry of Trade had reported a growing prevalence of illegal imports. In 2022, the estimated value of illegal imports reached IDR 214.7 billion, a significant increase compared to IDR 9.6 billion in 2021, IDR 7.4 billion in 2020, and IDR 29 billion in 2019.
During Q1 2023, the Ministry of Trade, together with the customs office, seized post-border violations amounting to IDR 23 billion. The confiscated goods, including textiles, food and beverages, traditional medicine and health supplements, forestry products, and copper busbars (plates), weighed approximately 140 tons. These products mostly originated from Thailand, China, and India.
Tommy, the Director of Trade Compliance at the Ministry of Trade, stated that the seized goods would be destroyed and re-exported in accordance with Minister of Trade Regulation No. 51 concerning Inspection and Supervision of Import Trading after Passing through Customs Zones.
HIMPI urges government to take action
The Indonesian Young Entrepreneurs Association (HIPMI) is calling on the government to enhance supervision as illegal imports have surged over the past four years. The influx of non-compliant imports threatens the domestic business climate, particularly micro, small, and medium enterprises (MSMEs).
Akbar Himawan Buchari, the Chairman of HIPMI, expressed support for the government’s efforts to strengthen supervision. He emphasized that these illegal import practices can cripple domestic businesses.
“Illegal imports disrupt market prices, and we urge for immediate eradication,” he stated on June 19, 2023.
According to Buchari, the rise in illegal imports is driven by high demand. Nevertheless, he believes that the government’s efforts to restrict imports, especially secondhand clothing imports, are beneficial for national manufacturing industry. He also hoped that illegal importers become aware that such practices disrupt the business climate and constitute criminal acts.
“We hope that business actors also realize that illegal imports can disturb the business climate,” Buchari added.
Furthermore, Buchari believes that entrepreneurs should instil national values, extending beyond economic and business matters.
“As HIPMI entrepreneurs across Indonesia, we should be committed to strengthening national values. We should stand on our own feet and be hosts in our own country,” Buchari stated.
