“The current condition is expected to provide a momentum to evaluate various domestic policies to encourage the resilience and growth of the national industry,” acting director for industry resilience and business climate at the ministry, Yan Sibarang Tandiele, said in a statement received here on Friday.
Among the instruments that could be implemented to boost the national industry, which has been affected by the surge in imports during the pandemic, are trade remedies such as the imposition of safeguards and an antidumping policy, he said.
“Those policies are allowed and in accordance with the WTO rules, considering that the Most Favored Nation (MFN) tariff is not effective anymore to secure the industry as Indonesia is actively involved in various free trade agreements,” Yan elaborated.
The national industry is expected to grab the opportunity presented by the current situation to strengthen the structure of the manufacturing sector and develop self-reliance, he said.
“Therefore, the government along with all stakeholders continue to work in synergy to encourage the national industry's resilience," he added.
While voicing the same sentiment, the ministry's director general for regional resilience and international industry access (KPAII), Dody Widodo, said industry operators in the country are facing eight challenges on account of the COVID-19 pandemic.
The first challenge has been the postponement of contracts and payments. "Some sectors could not divert production like what has been done by the garment industry, which shifted to PPE (personal protective equipment) production," he pointed out.
The increased prices of raw and supportive materials have also affected supply and demand.
"The problem is that the price is uncontrollable because supplier countries are also facing the same problem," he explained.
Other challenges faced by the industry include currency rate fluctuation, declining production utility due to stringent implementation of health protocols, mass lay-offs, difficulties in logistics transportation, increased shipping fees, and limitations on operating hours as stipulated in local regulations.
“We are still formulating various stimulus for the industry, which is expected to boost productivity and utility,” Dody said. (INE)
Related news: Ministry moves to restrict garment import to protect domestic industry
Related news: Industry Minister urges people to buy domestic products
EDITED BY INE