The Indonesia Competition Commission (KPPU) underscores the importance of protecting domestic micro, small, and medium enterprises (MSMEs) from the influx of imported goods. KPPU member Eugenia Mardanugraha highlighted the impact of e-commerce on increasing the penetration of relatively low-priced imported products, posing a significant challenge to domestic businesses and MSMEs competing with foreign products in terms of price and quality. To address this, KPPU organized a focused group discussion on controlling the surge of imported finished goods in Indonesia. The discussion included various ministries, industry associations, and other stakeholders to deliberate on strategies to mitigate the negative impacts on local industries and consumers. Eugenia pointed out that the surge in imports, particularly from countries like China, Hong Kong, and Japan, has led to fierce competition, threatening the sustainability of domestic businesses. She cited the adverse effects, including reduced local production, a decline in GDP, and overall lower national welfare. Despite the availability of government instruments such as import duties, anti-dumping duties, and import quotas to control low-priced imports, these measures have not been sufficient. KPPU plans to collaborate with relevant parties to discuss measures to protect domestic industries from the adverse effects of cheap imported products.
Koko Haryono from the Ministry of Cooperatives and MSMEs revealed that around 83% of goods entering Indonesia in 2022 via e-commerce were priced below USD 100, prior to the implementation of Trade Minister Regulation No. 31/2023. Initiatives to boost local product sales include partnerships with digital companies, digital transformation programs for MSMEs, modern cooperatives, and the E-Catalog for MSMEs. Rifan Ardianto from the Ministry of Trade stated that the regulation restricts the direct sale of imported goods on digital platforms with specific requirements, while Dwi Wahyono added that measures are taken to increase local product sales on digital platforms, though careful implementation is needed due to WTO agreements. Sugeng from the Directorate General of Customs and Excise mentioned a decline in e-commerce imports since the regulation.
