The government must overhaul import regulations amid the spread of digitalization, senior economist from the Institute for Development of Economics and Finance (INDEF) Aviliani has said.

"People can now digitally purchase imported goods from the United States and Europe," she noted during the Global and Indonesia's Economic Outlook webinar here on Friday.

The ease of importing products from online platforms can impede domestic factories' attempts at raising production due to minimal demand for local products, she pointed out.

Therefore, the reason behind any increase in imports must be determined to check whether it is due to the prevalence of imported consumer goods or capital goods and raw materials for factories' expansion in the nation, she said.

In terms of exports, there has been no significant problem so far, Aviliani remarked.

However, she said, exports tend to increase when global demand recovers and commodity prices increase.

"The demand from China and the United States is starting to recover," the economist noted.

Even so, the government should seek new directions in the value-adding industry and bolster creative economy support to promote exports in the future, she advised.

All the efforts made to overhaul imports and exports will protect foreign exchange reserves, the rupiah exchange value, and help realize an independent economy so Indonesia will no longer need to depend on foreign capital, she added.

Echoing Aviliani's sentiments, Vice President Ma'ruf Amin has urged Indonesians to stop relying on imported goods and start building economic independence by purchasing local goods.

"We need to 'hijra' (migrate) from our dependence on imported products. Let us be self-sufficient and independent in our economy," Amin said in his opening remarks at the Islamic New Year festival in West Sumatra province, which was held virtually.

Source : https://en.antaranews.com/news/184934/economist-asks-government-to-overhaul-import-regulations