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Ministry of Industry will focus on 35% import substitution by 2022

26 October 2020 09:46

JAKARTA - The Ministry of Industry (Kemenperin) continues to focus on efforts to reduce the impact of the Covid-19 pandemic on the industrial sector and the national economy. The conditions of the Covid-19 pandemic provide valuable lessons on the need to immediately deepen the national industrial structure to overcome dependence on imports.

For this reason, the Ministry of Industry initiated an import substitution program of 35% in 2022. This step will be carried out simultaneously with efforts to increase product utilization in all sectors of the manufacturing industry. "This is in accordance with the mandate of Law Number 3 of 2014 concerning Industry to realize the depth of an independent and competitive industrial structure," said the Head of the Industrial Research and Development Agency (BPPI) of the Ministry of Industry, Doddy Rahadi in Jakarta, Saturday (24/10).

Previously, President Joko Widodo stated that the economies of all countries were currently stuck or hanging, therefore restarting and rebooting were required. "All countries, including Indonesia, have the opportunity to restructure all their industries," said Doddy. Departing from this, the government is ready to implement several policies related to reducing imports. One of them is by increasing the most favorable nation (MFN) import duty rates for strategic commodities. In addition, the government will implement non-tariff policies such as the application of technical barriers to trade (TBT) by increasing the number of compulsory Indonesian National Standards (SNI).

In a recent webinar with the Association of Indonesian Metal and Machine Working Companies (GAMMA), Doddy also said that currently there are only 22 compulsory SNIs in the metal industry sector. Furthermore, there are four compulsory SNIs in the machinery sector. (LM)

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