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Jakarta, CNBC Indonesia – Bicycle manufacturers responded to the Regulation of the Ministry of Commerce (Permendag) Number 68 of 2020 regarding the provisions on the importation of footwear, electronic products and two-wheel bicycles and tricycles.
One of the most interesting is the need for a special permit to import Brompton and other applicable bikes. August 28, 2020. However, it is feared that this policy will affect the supply of imported bicycles, thus affecting the price. On the other hand, it will hold back importers.
The Regulation of the Ministry of Commerce Number 68 of 2020 regulates that commercial actors must have an Import Approval (IP) and LS to comply with the import requirements of these basic products. In addition, the monitoring mechanism that is being implemented has also undergone changes, which was originally carried out outside the customs area (border post) and is now carried out in the customs area (border). This means that the process is more difficult than before the new rules.
The president of the Indonesian Bicycle Industry Association (AIPI), Rudiyono, hopes that the national bicycle industry can be more motivated. Demands that have been satisfied with imported products can now pass to Indonesian producers.
“It is good that importers are orderly, many are carelessly importing without paying attention to SNI (Indonesian National Standard),” he told CNBC Indonesia, Monday (8/31).
However, he remembered not to let any game play or take advantage of the recently approved regulations. This can happen if the implementation of these regulations is indeed weak in the field.
“Almost in all policies there is a gap point, people can go in there. It can be a bit difficult to identify if it has just been approved, but in the future it can be seen here,” he said.
The regulation regulates at least some HS for two- and three-wheel bicycles. Namely, tariff publication / HS 8712.00.10 (Two-wheeled racing bicycles), 8712.00.20 (Two-wheeled bicycles designed to be driven by children, 8712.00.30 (other two-wheeled bicycles) and 8712.00.90 ( including Brompton).
Prices can fly
The general secretary of the Indonesian Bicycle Business Association (Apsindo), Eko Wibowo, believes that the new regulations will limit the supply of bicycles, especially imported ones.
“Yes, it is not necessary to have limited Brompton first, the count is tens of hundreds at most. Below that, the price of Rp. 10 million, Rp. 5 million cannot be supplied, because with this quota limit it is It needs processing time. At least a month delay is the condition. Now. Even though the merchandise is ready in the country of origin, “he said.
He estimates that the hampered supply will cause imported bicycles to rise in price. “Also, the average price increase can be up to 40-50 percent. For example, Brompton’s distributor price is around Rs 30 crore, to Rs 32 crore. Average sale is over Rs 40 million rupees, “he said.
According to him, the limited supply will cause an increase in prices at dealers.
“Yes (above 50 million rupees). That is not another bicycle brand. Local bikes are due to shortage supply The price is already Rp 7 million, the difference is Rp 5 million, the difference is Rp 2 million, “he said.
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