Illegal imports worth Rp 40 billion seized

On July 26, Indonesia's Trade Minister led a special task force to rectify illegal imports and seized a warehouse in Jakarta's North District, where the value of products suspected of being illegally imported amounted to Rp 40 billion, equivalent to about 20 million yuan. The products included are as follows:

Cell phones and tablets Rp 2.7 billion, equivalent to about 1.35 million yuan

Clothing and readymade garments Rp 20 billion, equivalent to about Rp 10 million

Electronics Rp 12.3 billion, or about 6.15 million yuan.

Children's toys 5 billion rupiah. Equivalent to about 2.5 million rupiah

Indonesia's Trade Minister Hassan said that the importers of this warehouse are foreigners who rent warehouses, pack the goods and then sell them online. Such an approach not only affects the country's tax revenue, but also harms Indonesia's local industry. The task force has received many reports that there are said to be 30-40 such large warehouses for e-commerce in each province. Warehouse owners should also be careful not to rent out their warehouses to businesses doing illegal trading.

The Minister of Trade of Indonesia requested the Task Force on Illegal Imports to conduct in-depth investigations and take decisive action to destroy not just samples, but all of them, in order to serve as a deterrent.

In the meantime, the Indonesian Trade Minister will report the final findings to President Joko, and together with the Attorney General, the National Police Chief and the Minister of Finance, we will discuss what the problem is with imported goods and seek practical solutions.

The Indonesian government, in conjunction with 11 ministries and agencies, set up a task force on July 19 to rectify illegal imports, and is expected to conduct a six-month joint inspection of importers and distributors of textiles, electronics, footwear, garments, ceramics and cosmetics, and will check on operators' licenses, product certifications and tax payments.

It seems that this action of the Indonesian government is really serious, for the Indonesian e-commerce and trade practitioners have a huge impact, a lot of related enterprises in order to avoid the inspection storm, choose to suspend business. At the same time, it also allows practitioners to rethink and reposition the business strategy in the Indonesian market, get rid of the past dumping and low price competition model, adhere to long-termism, adhere to legal compliance, build a local supply chain, and jointly maintain the market order, is the long-term solution.