• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

July 13, 2026

Tributes Pour in for New Zealand Actor Sam Neill, a Look at His Life and Career

July 13, 2026

Iran Ceasefire is Over, But Talks to Continue

July 13, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Monday, July 13
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Texas Hispanics swung hard to Trump. A new poll shows they’re furious at his deportations.

    July 12, 2026

    The high-stakes, battleground Senate race that no one is talking about

    July 12, 2026

    Lindsey Graham’s Passing Is Another Stage In The Death Of Trumpism

    July 12, 2026

    How ICE melted from view at the World Cup

    July 12, 2026

    The secret to becoming a sporting superpower

    July 12, 2026
  • Health

    Lindsey Graham Cause Of Death, Aortic Dissection. An ER Doc Explains

    July 13, 2026

    Supporting Science Is An Act Of Patriotism

    July 13, 2026

    AAIC 2026: Researchers focus on tau, target blood-brain barrier

    July 12, 2026

    Lindsey Graham’s Sudden Death Sparks Questions About Cardiac Arrest

    July 12, 2026

    July 13 Is Deadline To Comment On New Trump OMB Rule That Shifts Power

    July 12, 2026
  • World

    Iran Ceasefire is Over, But Talks to Continue

    July 13, 2026

    Texas Man Gets 40 Years for Leading Violent Online Child Exploitation Ring

    July 13, 2026

    Colombia’s Incoming Conservative Admin to Close Its Embassy in Cuba

    July 13, 2026

    Iran Reports New Attacks On Military Targets On Its Largest Island Near The Strait Of Hormuz

    July 13, 2026

    Factory Fire in ‘Shoe Capital’ City Kills at Least 28

    July 13, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

    July 13, 2026

    Mark Cuban has strong words on AI companies and job losses

    July 13, 2026

    Spectrum makes significant decision as customer losses mount

    July 13, 2026

    Costco and Walmart capture grocery-store crowns

    July 13, 2026

    Leading energy company files for bankruptcy

    July 13, 2026
  • Tech

    LAPD Cuts Ties with License-Plate Camera Vendor over ‘Who Owns the Data’

    July 12, 2026

    Apple Lawsuit Accuses OpenAI of Stealing Trade Secrets in Massive Scheme

    July 11, 2026

    Bloomberg Claims Startup Co-Founded by Bill Gates’ Daughter Cheats on Sales Credit

    July 11, 2026

    Nobel Prize-Winning Chemist Leaves U.S. to Join Chinese AI Project

    July 11, 2026

    European Commission Finds Meta Violated Digital Services Act with Addictive Design Features

    July 11, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Relocating Indonesia’s Import Gates: A Shortcut to Help Local Industries Compete
Finance

Relocating Indonesia’s Import Gates: A Shortcut to Help Local Industries Compete

September 4, 2024No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Relocating Indonesia’s Import Gates: A Shortcut to Help Local Industries Compete
Share
Facebook Twitter LinkedIn Pinterest Email

Indonesian policymakers are considering relocating import entry ports for seven commodities – textiles, garments, ceramics, footwear, apparel, cosmetics, and electronics – to eastern ports in Sorong West Papua, Bitung North Sulawesi, and Tenau Kupang East Nusa Tenggara. The relocation is planned after the relaxation of import licensing on the seven commodities under Trade Minister Regulation 48/2024, which, among others, waives technical considerations as a requirement for obtaining import license.

If implemented, the relocation would be a policy shortcut to reduce imports and help domestic industries compete. Shifting imports to more distant ports increases logistics costs and retail prices, thereby giving local products a competitive price edge. However, it potentially violates multilateral rules under the General Agreement on Tariffs and Trade (GATT) 1994.

Currently, 75 percent of Indonesia’s non-oil and gas imports are handled in Java Island in the western part of the country, through the major ports of Tanjung Priok (Jakarta), Tanjung Emas (Semarang, Central Java), and Tanjung Perak (Surabaya, East Java). Java, home to 156.9 million people – 55 percent of Indonesia’s population – hosts the majority of consumers and distribution centers for imported goods. The remaining 45 percent is spread across other islands in the western, central, and eastern regions. 

As it stands, Tanjung Priok is the largest port for importing the seven commodities in question. For example, in 2023, the port handled footwear imports worth $616.4 million, or 64 percent of the country’s total footwear imports of $968.8 million. 

In contrast, import activities in West Papua, North Sulawesi, and East Nusa Tenggara are trivial, accounting for 0.02 percent, 0.05 percent, and 0.02 percent of Indonesian imports, respectively. Sorong, Bitung, and Tenau Kupang ports do not handle any imports of the seven commodities flagged in the new policy.

See also  Price bubble in AI stocks will wreck rally: economist David Rosenberg

Importers will bear higher costs if they must transport goods from the countries of origin to ports in the east and then to Java. The sea distance from Sorong to Jakarta, for instance, is 3,935 kilometers, and vessels transit through Makassar in Sulawesi and Surabaya. The relocation of entry ports thus creates a barrier for imports and will boost the price competitiveness of local products.

Indeed, imports of seven commodities have surged and are drowning local industries. The most disruptive imports are goods sold at below-normal prices from China, while imported goods from other countries are generally traded at standard market prices.

Moreover, illegal imports have been out of control, worsening the injuries suffered by local industries. Back in October 2015, President Joko Widodo declared that he had ordered the customs service to investigate illegal imports. He announced that the order had been properly executed, and illegal import activities had been curbed. 

Yet nine years later, in July 2024, an inter-ministerial and agency task force was established to address the widespread cheap and illegal imported goods. The task force has flexed its muscles by closing warehouses, confiscating and destroying these illegal goods. 

Now Indonesia is considering a new approach. The relocation of entry ports would have the effect of raising prices and reducing the supply of goods from all countries, giving a leg up to local manufacturers. The change would, however, also limit consumer choices and force them to buy local products that may not always match their preferences.

Port relocation is a trade measure, and thus its conformity with multilateral rules should be considered. GATT 1994 Article XI:1 (General Elimination of Quantitative Restrictions) prohibits “prohibitions or restrictions other than duties, taxes or other charges, whether made effective through quotas, import or export licences or other measures.” Panels in relevant World Trade Organization dispute settlements have interpreted “other measures” to include a “broad residual category” affecting the competitiveness of goods.

See also  Riley Gaines Is Trying to 'Get Likes and Get Clicks' and Sporting Bodies Should Decide How Trans Athletes Compete

The forced port relocation implies restriction on the number of ports available for imports. The Colombia-Panama case in the WTO dispute settlement mechanism (DS366) during 2007-2009 serves as a reference for determining whether such a measure constitutes an import restriction.

In that case, Colombia prohibited imports of textiles, footwear, and apparel from Panama or the Colon Free Zone (CFZ), except for imports sent to Bogota airport and Barranquilla seaport. Panama argued that the port restriction imposed a limiting condition because there were only two ports of entry, out of 11 total, available. Panama said it limited competition by forcing importers to incur higher shipping costs to reach key markets outside Bogota and Barranquilla, discouraging exports and creating uncertainty, making the restriction in violation of GATT Article XI:1.

On May 20, 2009, the WTO Dispute Settlement Body adopted the panel’s report, which inter alia judged that Colombia’s port restriction was a prohibited restriction on importation. The port restriction, though not a quota or import license, could be considered one of the “other measures” outlawed by Article XI:1.

Although Colombia’s port prohibition was applied discriminatively to imports only from Panama or the CFZ, the panel judged that the measure, whether discriminatory or not, breached Article XI:1. This could set a precedent if Indonesia adopts port restrictions, even if not aimed at a particular country, and the measure is challenged at the WTO.

Indonesian policymakers need to cautiously weigh the economic benefits of supporting local industries against the costs of limiting consumer choices and the risks of non-compliance with multilateral trade rules.

See also  Why Indonesia’s Waskita Karya Can’t Pay Its Debts
Compete Gates import Indonesias Industries Local Relocating Shortcut
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

July 13, 2026

Mark Cuban has strong words on AI companies and job losses

July 13, 2026

Spectrum makes significant decision as customer losses mount

July 13, 2026

Costco and Walmart capture grocery-store crowns

July 13, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Oil could be headed as high as $150 unless the US boosts its output, says major exploration firm

September 27, 2023

Oil to drift lower as slower growth offsets OPEC+ cuts: Reuters poll

July 31, 2023

Expecting Agreement To Solve Ethnic Conflict By Year-End: Lanka President

May 1, 2023

15-year-old wanted in brazen murder attempt on school bus allegedly killed sister of one of his accomplices 2 days later

May 26, 2023
Don't Miss

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

Finance July 13, 2026

wirestock/Envato Some workers have been mandated back to the office after settling into work-from-home life,…

Tributes Pour in for New Zealand Actor Sam Neill, a Look at His Life and Career

July 13, 2026

Iran Ceasefire is Over, But Talks to Continue

July 13, 2026

Donald Trump Was Target Of ‘Very Specific’ Iranian Assassination Plot

July 13, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,399)
  • Entertainment (5,644)
  • Finance (4,166)
  • Health (2,460)
  • Lifestyle (1,897)
  • Politics (3,861)
  • Sports (4,852)
  • Tech (2,371)
  • Uncategorized (4)
  • World (5,620)
Our Picks

‘Murderers Shouldn’t Get U.S. Visas’

September 21, 2023

South Korea Seeks to Fill China’s ‘Belt and Road’ Void in Italy

August 4, 2023

BJC Healthcare Eyes $10 Billion Union With Saint Luke’s Health System

June 19, 2023
Popular Posts

He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

July 13, 2026

Tributes Pour in for New Zealand Actor Sam Neill, a Look at His Life and Career

July 13, 2026

Iran Ceasefire is Over, But Talks to Continue

July 13, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.