The Ministry of Industry (Kemenperin) highlights the textile and textile product (TPT) industry which is showing weakness. This was not only triggered by the flood of imported goods into the domestic market, but also because of regulations regarding bonded zones. The regulation at issue is Minister of Finance Regulation (PMK) Number 131/PMK.04/2018 concerning Bonded Zones. Spokesperson for the Ministry of Industry, Febri Hendri Antoni Arif, said that there are many imported products in bonded areas that are oriented towards the export market, but instead enter and flood the domestic market.
"There is a Minister of Finance Regulation which states that export products that are not absorbed by the domestic market can be sold in the domestic market," said Febri at the September 2023 IKI Release event, quoted on Sunday (1/10/2023).
So, according to Febri, this could trigger the resilience of the national textile industry, which is currently starting to contract due to the large number of imported products flooding the domestic market. "We see that as a problem. So there are industrial products in bonded zones that are export-oriented but instead enter the domestic market," he said.
Referring to Article 31 of the regulation, the release of production results to other places within the customs area is carried out in a maximum amount of 50 percent of the total value of realized exports and sales to various other economic areas.
Responding to this, Special Staff to the Minister of Finance for Strategic Communications, Yustinus Prastowo, confirmed that entrepreneurs in bonded zones are export-oriented entrepreneurs because they are part of global demand and supply.
"In certain situations, especially when global demand decreases as happened during the pandemic, domestic delivery facilities can be provided after coordinating with agencies in charge of the industrial sector," said Yustinus, Sunday (1/10/2023).
Prastowo said, to maintain fairness with non-bonded area business actors, the delivery of goods from bonded areas to other customs areas (NKRI territory) is treated as imports and must fulfill the obligation to pay import duties and taxes in the context of imports. For this reason, domestic industrial competitiveness will remain maintained.
According to him, the bonded zone policy is a form of government support to strengthen domestic industry. Not only that, bonded zones are also an effort to support domestic industry in seeking to absorb raw materials, absorb labor, improve supply chains, and encourage exports which generate foreign exchange for the economy.
"As a result, there has been an increase in TKDN, employment, and foreign exchange from exports," he said.
Nevertheless, the Ministry of Finance, in this case the Directorate General of Customs and Excise (DJBC), will always coordinate, communicate and cooperate with other agencies including the Ministry of Industry and bonded zone business associations.
"So that supervision so far has been effective and can maintain fairness for all business actors," added Prastowo. Previously, the Director General of Customs and Excise at the Ministry of Finance, Askolani, said that his party had carried out an in-depth study of the data received from external parties regarding illegal imports in the textile industry. Then, only then did they match it with the data obtained by the customs and excise authorities.
"From there we saw the potential for under invoicing to occur, then the potential for undeclared (hidden) imports from the reported volume and tonnage, and what commonly occurs is the HS Code transfer aspect," said Asolani at our APBN Press Conference, recently.
However, Askolani ensured that the Ministry of Finance's DJBC would continue to carry out supervision in the field as a step to prevent the entry of illegal TPT by synergizing with law enforcement officials and business actors.
"We have coordinated with law enforcement officials, including business actors, so that we can understand and follow up on the data," he said.