GINSI pushes for strengthening importers amid global turmoil

Surabaya, East Java - The National Importers Association of All Indonesia (GINSI) is pushing for the strengthening of importers’ roles in the economy amid global turmoil and pressures. “The impact of the war in the Middle East is significantly affecting international trade activities. Indonesia remains a country that imports various staple goods from abroad,” said GINSI General Chairman Subandi in Surabaya, East Java, on Thursday. Subandi stated that the majority of industries in Indonesia still rely on imports to meet production raw material needs. On the other hand, the war in the Middle East is beginning to influence raw material prices, such as plastic prices, which have risen by 40 to 50 percent. This is due to the increase in global oil prices, as well as rising freight costs or the cost of transporting goods from abroad, alongside the rupiah’s continued pressure against the US dollar. According to him, if these challenges persist, there is potential for a decline in import activities, which would impact the supply of raw materials to industries. “The cost of bringing in goods is a concern for import business players. If this is felt to be very detrimental, there could be a decline in import activities, meaning disruptions in the supply of raw materials to industries,” he said. Therefore, Subandi wants the government to address the challenges faced by importers, such as stabilising the rupiah exchange rate, providing incentives or tax relaxations, and easing permitting. “So, does the government have sufficient foreign exchange reserves, can it stabilise the rupiah exchange rate, and can it provide incentives, relaxations, or whatever it’s called,” he said. Meanwhile, East Java GINSI Chair Hana Belladina emphasised that all members must remain optimistic amid global uncertainty. “We must not lose optimism. This is precisely when our resilience is tested. We must dare to take steps, innovate, and build trust,” said Bella. She explained that business success is not solely determined by conducive conditions but by the ability to keep moving in difficult situations. Moreover, around 79 to 80 percent of industrial raw materials in East Java still depend on imports, making the smooth flow of goods a determining factor for production stability. “This means that the continuity of industries, production stability, and national export competitiveness are greatly determined by the smooth flow of imports that we manage,” she said.