Thu, 16 Oct 2008
Jakarta (ANTARA News) - The Indonesian government decided to limit the import of raw materials for producing consumer goods, particularly those already locally produced.

Edy Putra Irawady, deputy for trade and industry of the office of the coordinating minister for the economy, said here on Wednesday the decision would revive domestic industries of raw materials and capital goods especially now that spendings on buying raw materials had been huge.

Citing an example he said that purchase of capital goods in the mining sector in 2008 reached US$4 billion consisting of domestic purchase totalling US$1.3 billion and imports worth US$2.7 billion.

He said it was found that most of the items put in the import list had been produced at home such as trucks, brakelining and canned foods.

Edy Putra said that the government also would limit importers to only producers meaning only importers who have factories in the country could conduct import.

Based upon the decision all import products could only be imported by sole agents (ATPM) like in the automotive sector where only import product manufacturers or factories in the country were allowed to conduct imports of the goods.

If importers do not have factories the permit would be given to a registered importer determined by the government, he said.

He said in general the right to import was given to registered importers or import product producers that distibuted similar products.

He said the government would also give time for example six months or two years to producers of import products to set up a factory in the country. If they fail to do it they will lose their market here, he said.

He said his office would first focus on formulating a regulation on the right to import consumer goods.

Eddy said all the decisions on import limitations were currently being coordinated between the trade and industry ministries, adding that the decree on the matter would be issued by one of the ministries.(*)



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