The Ministry of Industry once again criticized trade regulatory regulations for hitting Indonesia's manufacturing sector, with the October 2024 manufacturing PMI contracting to 49.2, marking four consecutive months of contraction. The Ministry of Industry questioned the regulation's claim to protect domestic industries, as it removed relevant requirements for finished goods imports, opening the door wide for imports. Of the 518 commodity groups, 88.42% are finished goods that can be produced domestically. The Ministry of Industry stated that the regulation has led to the market being flooded with imported goods, which is one of the reasons for the manufacturing downturn, and policies from other ministries also affect manufacturing. The Ministry of Industry hopes for coordination among parties, such as implementing safeguard import duties on garments, but related proposals have been rejected. The survival of the manufacturing sector urgently requires concrete action.
The Ministry of Industry once again criticized trade regulatory regulations for hitting Indonesia's manufacturing sector, with the October 2024 manufacturing PMI contracting to 49.2, marking four consecutive months of contraction. The Ministry of Industry questioned the regulation's claim to protect domestic industries, as it removed relevant requirements for finished goods imports, opening the door wide for imports. Of the 518 commodity groups, 88.42% are finished goods that can be produced domestically. The Ministry of Industry stated that the regulation has led to the market being flooded with imported goods, which is one of the reasons for the manufacturing downturn, and policies from other ministries also affect manufacturing. The Ministry of Industry hopes for coordination among parties, such as implementing safeguard import duties on garments, but related proposals have been rejected. The survival of the manufacturing sector urgently requires concrete action.