JAKARTA (Antara) – The proposed new entry point for imports will help boost the economy by creating centers of economic activity and promote the development of the domestic shipping industry, said Industry Minister Agus Kumiwang Kartasasmita.
Together with Trade Minister Zulkifli Hassan, Kartasasmitha will propose possible entry routes for imported goods in the eastern part 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 hub for economic activity,” he said in Jakarta on Friday.
According to him, the shipping industry in Indonesia could benefit from the establishment of a new import route due to the cabotage policy, which requires the use of domestic shipping companies in the distribution process.
„Our shipping industry will grow and hopefully, this will help the growth and development of the shipping industry in Indonesia. The multiplier effect can be felt,” Kardasasmita said.
The proposed new route for imported goods targets seven items – textiles, ceramics, footwear, apparel, cosmetics, electronics and other apparel.
Earlier, Minister Hassan proposed changing the entry route for goods imported outside Java to prevent the circulation of seven imported goods that flood Indonesian markets.
He noted that currently, most imported goods enter through ports on the island of Java.
Hasan said moving the port outside of Java could increase logistics costs and affect the selling price of imported goods to consumers.
„If those seven items flood Java, it should be transferred to ports outside Java, and we have a lot of them,” he added.
The two ministries will collaborate with the Finance Minister, the National Police Chief and the Attorney General to monitor the programme.
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