The proposed new entry point for imports could help advance the economy through the creation of economic activity centers and spur the growth of the domestic shipping industry, Industry Minister Agus Gumiwang Kartasasmita has said.
Together with Trade Minister Zulkifli Hasan, Kartasasmita will propose potential entry routes for imported goods in the eastern region of Indonesia.
“The possible entry point is Sorong or Belitung, outside Java Island. We both see it as a positive value, to open a new center for economic activity,” he informed in Jakarta on Friday.
According to him, the shipping sector in Indonesia could also benefit from the establishment of a new import route due to the cabotage principle, which requires the use of domestic shipping companies in the distribution process.
“Our shipping industry will grow and hopefully, it will help the growth and development of the shipping industry in Indonesia. The multiplier effect could be felt,” Kartasasmita said.
The proposed new route for imported products is aimed at seven commodities — textiles, ceramics, footwear, apparel, cosmetics, electronics, and other apparel.
Earlier, Minister Hasan proposed relocating the entry route for imported goods outside Java to block the circulation of the seven imported commodities that are flooding Indonesian markets.
Currently, most imported goods enter through ports in Java Island, he noted.
Moving the port outside Java could increase logistics costs and affect the selling price of imported goods for consumers, Hasan said.
“If those seven commodities are flooding in Java, it should be relocated to ports outside Java, we have a lot of them,” he added.
The two ministries will also cooperate with the Minister of Finance, the National Police chief, and the Attorney General to monitor the program.
Source from ANTARA
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