By Admin 
Indonesia has recently ramped up its efforts to monitor and regulate the import of goods into the country, particularly focusing on the prevention of illegal imports. A special task force has been established, comprising members from various government bodies, including the Attorney General’s Office, the police, the Ministry of Trade, the Ministry of Industry, and 19 other agencies. The task force’s primary target includes seven categories of goods, such as textiles, clothing, ceramics, electronics, footwear, cosmetics, and other finished textile products.
This move is part of a broader strategy to protect and promote domestic manufacturing, which is a significant contributor to Indonesia’s economic development. In the first quarter of 2024, Indonesia recorded a stark discrepancy between its textile import and export figures, with a potential gap of $2.5 billion attributed to illegal imports. This has prompted the government to take stricter measures, including considering safeguard tariffs of 100% to 200% on certain imported goods like footwear and cosmetics, although these measures are not yet formally implemented.
As Southeast Asia’s largest e-commerce market, Indonesia’s changing policies will inevitably impact its trade relationships, particularly with China. The region’s booming e-commerce market, with Indonesia leading the way, presents both challenges and opportunities for global sellers.
Indonesia’s e-commerce market is projected to continue its rapid growth, driven by a young and increasingly internet-savvy population. However, the Indonesian government’s protectionist measures, aimed at fostering local manufacturing, are tightening the rules for cross-border sellers. New regulations include stricter customs controls, mandatory certifications for imported goods, and restrictions on foreign sellers in local e-commerce platforms like Shopee and Lazada.
These developments signal a shift towards favoring local sellers and manufacturers. Platforms like Shopee have already started to restrict cross-border sellers, requiring them to establish local production capabilities to continue operating in the market. This trend is pushing international sellers to consider localizing their supply chains to meet regulatory requirements and capitalize on the growing Indonesian market.
As the landscape evolves, companies that adapt by investing in local manufacturing and aligning with Indonesia’s industrial goals are likely to thrive. For cross-border e-commerce businesses, building local supply chains and ensuring compliance with Indonesian regulations will be key to sustaining and growing their presence in this lucrative market.