Importers, especially the ones holding permits as General Importer Identification Numbers (API-U), are hard to carry out activities following the enactment of Government Regulation (PP) No 28/2021 concerning the Implementation of the Industrial Sector.
In response, the Indonesian Importers Association (GINSI) urges the authority to revise the regulation. According to GINSI, this regulation threatens the supply of industrial raw materials (shortage), potentially threatening a wave of layoffs.
Talking to the press, Yelinda from steel import company PT Tira Austenite revealed that since the issuance of this regulation, API-U holders could not process their import permits, especially for getting permits to import steel commodities and their derivatives, tires and textiles.
“General importers have been restricted since December 2022 through this regulation. And if it continues, we predict that the national industry will only be able to survive until June 2023. This condition endangers the continuity of the national economy. Therefore, we ask that the regulation be revised, especially in Article 19 paragraph (1),” Yelinda told reporters at the GINSI office in Jakarta on Wednesday evening, April 5, 2023.
Responding to the issue, GINSI Chairman Capt Subandi revealed that GINSI had conducted a public hearing on February 15, 2023, with the Coordinating Ministry for the Economy. The hearing concluded that after listening to inputs and complaints from national importers, the PP 28/2021 would be revised.
“However, until now, the revision results have not yet been published. That’s why we (GINSI) questioned it again. We don’t mean to go against the government’s guidance. But, we don’t expect the regulation that potentially destroys national import,” said Subandi.
According to GINSI data, in DKI Jakarta, there are more than 700 GINSI members and 300 companies, of which 60-70% of API-U holders are importers of steel and its derivatives.
Currently, there are 1,200 importers holding API-U spread throughout Indonesia, and 60-70% of them are importers of steel and its derivatives, including tires.
SINAS-NK Burdens Importers
On the other hand, GINSI also criticized the National Commodity Balance System (SINAS-NK) as this information technology-based system has burdened entrepreneurs to import.
GINSI reminded us that the initial goal of this system is to simplify export-import licensing and become the basis for issuing export and import approvals, as well as providing legal certainty in business licensing.
“This problem is very unexpected. This case disturbs the supply chain for the manufacturing industry, consumer goods, and others. Finally, this potentially creates layoffs. The supply chain disruption to the industry is difficult to prevent if the government does not revise its policies. Therefore, this problem must be resolved immediately,” said Subandi.
Subandi hoped and begged the government to respond to the problems and difficulties the importers are facing affected by this policy. Subandi said importers are currently haunted by uncertainty and often experience losses if the imported goods ordered cannot enter Indonesia or have entered but cannot leave the port because their import permits have yet to be responded to at Sinas-NK.
Echoing these views, GINSI Deputy Head for Port Logistics and Customs Affairs Erwin Taufan affirmed that many importers have complained about this SINAS-NK. For example, imports for commodity spare parts, automotive, tires, steel, and electronics from December 2022 until now cannot be processed when submitted via SINAS -NK.
He added that importers holding API-U could not import some tire, steel, and their derivatives commodities. “Therefore, the Coordinating Ministry for the Economy needs to push for the revision of PP 28/2021 immediately. This is because the national industry is on the verge of extinction due to stagnant raw materials. If there is no concrete solution to this problem, our strength will only be until June or in the next two months,” said Taufan.
