Uncontrolled import flows could be a major obstacle to realizing the Prabowo Subianto government's ambitious target of driving Indonesia's economic growth to reach 8%.
Chairperson of the Chemical Vocational Agency of the Indonesian Engineers Association (BKK-PII) Sripeni Inten Cahyani expects the government to be more serious in protecting and reviving the national industry, especially in strategic sectors such as the chemical and petrochemical industries. According to Sripeni, high economic growth cannot be separated from the contribution of strong and independent upstream and downstream industrial sectors, especially the chemical industry and the public's consumption capacity.
Currently, short-term policies are needed to protect existing industries so that they can survive and grow, thus avoiding employee layoffs which will have an impact on decreasing public consumption capacity.
"Government support is expected so that existing industries are able to upgrade more efficient and environmentally friendly technology so as to increase their global production competitiveness and increase their production capacity," said Sripeni in her statement, Sunday (1/6/2025).
In fact, it is not uncommon for industries that are already running to be shut down. According to her, this often happens in the textile industry, even though Indonesia is one of the countries with a complete ecosystem besides India and China.
Sripeni highlighted the latent danger of import practices that are left uncontrolled. The entry of imported goods, especially those originating from unofficial channels or at dumping prices, is a serious threat to the sustainability of the domestic industry.
According to her, the government's plan to increase the Anti-Dumping Import Duty (BMAD) for partially oriented yarn-drawn textured yarn (POY-DTY) products is the right step. She proposed that this policy be implemented immediately.
"Mr. Prabowo has a noble ideal to achieve 8% economic growth and national self-sufficiency. But that will not be achieved if the industry is not alive. Don't let the ones that are already alive be killed, while the new ones are given the red carpet," said Sripeni.
According to her, imports must be controlled so that local industries can continue to survive. Danger lurks for the Indonesian economy if the industry is allowed to die due to the onslaught of imported products.
"If imports continue to be left unchecked, local industry will die. And if this industry dies, the community, especially the lower middle class, will have no choice. They lose their source of livelihood. On the other hand, highly educated people will also lose job prospects," Sripeni explained.
Strong local production will encourage industrial projects such as petrochemical plants and refineries to move up in status from the planning or initial exploration (prometer) stage to commercial. Once it reaches this stage, the project will begin to have a real impact on the economy through job creation, increased exports, and reduced trade balance deficits.