Import Down until 60%, But GINSI Lauds Customs Service and Import Easiness Policies

The coronavirus (covid-19) outbreak has caused a drop in import by up to 60% during March-May, according to Indonesia Importers’ Association (GINSI). However, GINSI appreciates the Directorate General of Customs for its high performed service during the pandemic and lauds some policies and regulations for import easiness.

“As importers we are satisfying with customs service during this pandemic, thanks to Directorate General of Customs for its high performed service,” GINSI Vice Chairman for Logistics and Transportation Erwin Taufan told reporters this morning (Wednesday, May 13).

“Customs offices, both at the seaports and airports, can keep their high performance during this pandemic,” he added.

Taufan is even so grateful for some customs policies and regulation during the pandemic of that give easiness and faster process in releasing import cargoes from the seaport and airports.

Taufan affirmed that the customs authority is now having high responsibility as it has been tasked to make sure some regulations from other departments and ministries running as expected.

“There are so many interests involved. The customs’ task is so hard and complex. Our country is so big with wider cross-border are to be kept. But, during this pandemic the customs can tackle it well, importers are satisfying,” said Taufan, expecting for a future tighter partnership between GINSI and Directorate General of Customs.

GINSI predicts the import drop due to covid-19 will continue until the end of this year. But, importers have given a positive response to the steps of Ministry of Finance, thanks to the issuance of Ministry Regulation PMK No 34/PMK.04/2020.

The regulation released on April 17, 2020, provides customs and tax facilities of easiness to import goods for covid-19 prevention and treatment.

Taufan affirmed that import of most commodities, except for goods for covid-19 treatment, have significantly dropped due to some factors. According to Taufan, the drop of import was due to the stop operation of non-consumer goods industries, while most of their raw material are imported.

“This also due to move of the industry to decrease production due to lower market demand. Consumers purchasing power is lower, so the production is less absorbed by both domestic and international market. Since industry is decreasing their production, demand to import raw material is also decreasing,” he said.

In the first quarter (Q1) 2020, the import of raw material and capital goods tended to decrease, while the consumer goods increased, according to Central Bureau of Statistics (BPS). BPS said that this situation will affect the performance of industry, trade, and investment.

According to BPS data, in Q12020, import of consumers goods increased 7.11%. The import of raw material and capital goods during the period, meanwhile, dropped by 2.8% and 13.07%, respectively.

BPS also said that in March import value reached US$13.35 billion, up 15.6% from previous month, but down 0.75% from March last year.

 

 

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