Indonesia cracks down on illegal imports, seizes Rp 100 billion in goods in three operations

On August 19, Indonesia's Trade Minister told the media that the Special Task Force for the Rectification of Illegal Imports had for the third time seized illegal imports worth a total of Rp 20.2 billion, or about Rp 10 million. Illegal goods seized included electric drills, angle grinders, cell phones and tablets, electric pressure cookers, car wash machines, cables, tires, downstream plastic products, textiles, and alcohol. None of the seized goods had complete import documents such as inspection reports (LS), product registration numbers (NPB), and the Indonesian national standard (SNI), as well as after-sales services. The Task Force used heavy equipment to destroy the illegal goods on-site.

Since July 18th, the task force has carried out three major investigations and seizures of goods with a total value of more than Rp 100 billion, equivalent to about 50 million yuan.

The first of these was on July 26th at Kamal Muara Warehouse Area in North Jakarta, where merchandise worth Rp 40 billion was seized, including electronics, clothing, toys, and more.

The second was on Aug. 6 at the port area in Cikarang, east of Jakarta, where the goods seized were valued at about Rp 46 billion, including electronics, textiles, footwear and other items.

Indonesia's trade minister said the three inspections have terrorized illegal importers in Tanah Abang, Mangga Dua in Jakarta, Surabaya in East Java, and Medan in Sumatra. In order to escape the wind and leave Indonesia, many warehouses are closed for business, and even some cargo ships are afraid to dock. The Indonesian government wants to investigate the illegal imports to the end, and resolutely deter illegal importers and protect the local industry. The task force is commissioning relevant professional organizations to investigate the extent of penetration of illegal commodities in the Indonesian market in order to carry out its work in greater depth.

The trade minister also said that the rectification of illegal imports is crucial for the next government to achieve the economic growth target of 7-8% because illegal imports affect the national tax revenue. The government must address this issue because the underground economy accounts for about 30%-40%, and if we can address this issue, national revenues will increase in favor of economic growth.

The operation of the Working Group on Rectification of Illegal Imports, which started on July 18, 2024 and lasts until the end of the year, consists of 11 ministries and agencies of the Indonesian government department, targeting importers and distributors' warehouses to conduct inspections. According to this situation, in order to protect the local industry as well as local employment, the Indonesian government to rectify illegal imports will become the new normal, so in the second half of the Indonesian market, landing on the ground, compliance and local production will be the general trend.