The Indonesian Refrigeration Company Association (Perprindo) finds itself in disarray following the enforcement of import bans and restrictions on electronic goods, including crucial raw materials for domestic production. Technical considerations (Pertek) mandated as a prerequisite for import endorsements under Minister of Industry Regulation No. 6/2024, stemming from Minister of Trade Regulation 3/2024, have triggered apprehension among industry players due to perceived inadequacies in its mechanisms. Darmadi Durianto, Chairman of Perprindo’s Board of Trustees, lamented that the Pertek application process, supposed to take merely 5 working days, has left many entrepreneurs without approval. This bottleneck impedes the acquisition of vital components like air conditioner (AC) compressors, which are not yet domestically manufactured. Perprindo deems the Pertek framework disorderly and in need of reassessment. “It’s counterproductive for the government to curtail AC imports to bolster the domestic industry when said industry isn’t adequately prepared,” remarked Darmadi on Wednesday (17/4/2024). Darmadi underscored Indonesia’s current lack of compressor plants, necessitating AC manufacturers to import compressors for local production. He argued that import restrictions would deter investment inflows due to domestic raw material scarcity compounded by protracted import licensing procedures. “We propose that for Minister of Industry Regulation 6/2024 to be effective, the government must support the establishment of ancillary AC production industries like compressor plants in Indonesia,” he urged. Presently, Darmadi implored the government to back manufacturers who have invested in local AC factories such as DAIKIN, SHARP, AQUA HAIER, as well as other foreign electronics manufacturers like MIDEA, HISENSE, and GREE, which have relocated their operations to Indonesia and partnered with local facilities. “They’ve shifted their production to Indonesia in collaboration with domestic plants, yet they still face hurdles in Pertek applications, with approvals pending despite Minister of Industry Regulation 6/2024 mandating a 5-day approval timeline,” he revealed. However, while acknowledging Minister of Industry Regulation 6/2024’s noble objectives to bolster the domestic industry, he urged the government to carefully gauge the domestic industry’s readiness to meet production demands. Darmadi expressed apprehension that Minister of Industry Regulation 6/2024’s faulty implementation could strain the domestic AC market due to supply shortages. Moreover, the disorderly enforcement of import restrictions and Pertek could prompt numerous foreign investors to withdraw investments due to legal uncertainties. “Perprindo hopes that Minister of Industry Regulation 6/2024’s implementation can proceed smoothly, with Pertek approvals issued within 5 working days,” he concluded.
