The latest trade policy regarding imports contained in the Minister of Trade Regulation No. 20/2021 is considered by business actors to be able to disrupt the domestic business climate. This is because the new licensing provisions negate a number of technical requirements. Head II of Indonesian Garlic and Tuber Vegetable Business Actors (Pusbarindo) Valentino said the regulation did not explicitly mention the recommendation for horticultural product import (RIPH) in the documents submitted for the issuance of import approvals (PI).

Valentino said differences in regulations regarding imports could divide garlic entrepreneurs and have an impact on business competition. Companies that hold PI according to the regulations of the Ministry of Trade can sell garlic cheaper because they don't have to carry out mandatory planting obligations.

On the other hand, companies that seek RIPH will incur more costs because they carry out mandatory planting.

“There can be unhealthy competition. One can sell at a lower price than the other,” he said.

Permits that are not yet clear, he said, also pose a risk of disrupting the shipping process. Valentino said importers are still struggling with continuing global logistical constraints.

"We are also chasing stock at the beginning of the year, especially at the beginning of the year close to the Lunar New Year and Ramadan Eid," he said.

Secretary General of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) Redma Gita Wiraswasta said that uncontrolled PI issuance without technical recommendations from the relevant ministries could have a negative impact.

"Import control is very important for us in the textile sector from upstream to downstream, so that the domestic market becomes a market guarantee for domestic products in the context of recovery," he said.

He said import activity currently tends to be restrained because China is still facing an energy crisis and shipping costs are still relatively high. When the situation starts to recover, Redma said import control will depend on Minister of Trade Regulation No. 20/2021.

"Indeed, technical recommendations are not a requirement. But in the regulations there are provisions regarding verification," he said.