Trade Minister Zulhas Says Jokowi Agrees That Trade and Import Minister Will Not Be Re-elected

JAKARTA – Trade Minister (Mendag) Zulkifli Hasan says President Joko Widodo (Jokowi) has agreed not to revise the Trade Minister's Regulation (Permendag) Number 8 of 2024 regarding import policy and regulation.

The man familiarly known as Zulhas said that initially, the import rules were contained in Rider Number 36 of 2023 concerning the policy and regulation of imports. The regulation was amended by Permendag Number 7 of 2024.

Zulhas explained that Permendag No. 7 of 2024 imposed import licensing requirements in the form of technical considerations or pertek. Over time, a number of obstacles have been found in the process of issuing import licenses.

As a result, Zulhas continued, a build-up of containers occurred at several major ports, such as Tanjung Priok Port and Tanjung Perak Port.

“I was in Peru again, at 2 am I received a call from the Deputy Minister (Deputy Minister), the President was angry, then a limited meeting at the Palace. Permendag 7 must be changed tonight because the goods in Priok are piled up, cannot go out,” Zulhas said at a working meeting with Commission VI DPR, Jakarta, Monday, July 8.

“I signed it from Peru. The technology was removed, so it's Permendag 8,” he continued.

However, Zulhas continued, Permendag number 8 of 2024 has been challenged again. This regulation is considered the cause of the bankruptcy of the country's textile industry.

He also denied these allegations. Zulhas stressed that the regulation still contains the pertek for textiles and textile products (TPT).

“Permendag 8 removes the new Pertek-pertek, while the old ones do not. The TPT is not (removed). So if the textiles say that we went bankrupt because of Permendag 8, it is not true. Because (the pertek) is not removed,” he explained.

Zulhas said that after returning from a working visit to Peru, a restricted meeting was held again. During the meeting, Industry Minister Agus Gumiwang suggested changing the situation by reinstating Pertek.

However, Zulhas continued, he rejected the proposal of Industry Minister Agus Gumiwang. He admitted that he opposed the Permendag being revised again.

“I came back from there (Peru), another meeting was chaired by the president, the proposal of the Minister of Industry to import again and the Permendag was changed again. I said I opposed it. If so, make your own regulations, don't keep the Permendag, I'm the bad guy, how come I'm the bad guy kicking the container? I don't understand this,” he said.

But it did not stop there, Zulhaskeh said, the government held another meeting. During the meeting, Zulhaskeh did not want to revise Regulation No. 8 of 2024 of the Minister of Commerce.

“I keep meeting, I survive, I say there is another solution. Technology will not necessarily solve the problem, that's why I gave up and the president agreed to stop making candy,” he said.

Zulhas said that as an alternative solution, the government would impose anti-dumping import duties (BMAD) and safeguard import duties (BMTP) on seven products.

The seven imported products are textiles, electronics, ceramics, footwear, finished garments, finished textile products and commercial products.

The determination of the BMTP, he continued, will be calculated based on the monitoring of the Indonesian Trade Safety Committee (KPPI) regarding the large number of imported products that have entered in the past three months. Meanwhile, the BMAD will be determined based on the results of the monitoring of the Indonesian Anti-Dumping Committee (KADI).

“They (KPPI and KADI) will see, looking at it in three years how important our data is, if indeed imports of these seven products increase, then they can impose a tariff. It could be 10, 20, it could be 200 percent. It is up to them to decide, it is not up to me,” he said.

“KPPI output is a duty to enter security measures, there is another KADI, the output will be BMAD. They will see the BPS data, what are the import data call associations, whether they are skyrocketing or not, then they will hear later, there will be a decision,” he continued.

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