Local Cosmetic Makers Move to Block European Rivals' Leeway
Jakarta. Local cosmetic producers have urged the government to revise a rule allowing unverified cosmetic imports, arguing that it would create a loophole for illegal imports and stymie local producers.
The Trade Ministry verification processes determine the country of origin and compliance with national standards, as well as other factors products must have to be eligible for sale in Indonesia. The new ministerial regulation, to come in to effect Nov. 1, requires verification of herbal medicine, electronics, food and beverages, toys, textiles and footwear.
Cosmetics have been left out of the verification process, as part of a trade deal struck with European trade chambers.
"The regulation is not for national industry," Putri Wardani, chairwoman of Indonesian Cosmetics Producers Association (PPAKI), said on Monday. Putri is also president director of Mustika Ratu, a publicly traded traditional cosmetics company.
"If the cosmetics are exempted from the verification, there will be a lot of illegal products finding their way into circulation in Indonesia," she said.
PPAK estimated about 20 percent of cosmetics in Indonesia today are comprised of illegal imports, Putri said.
"The national industry may die with this regulation," she said.
Karyanto Suprih, the director general of foreign trade at Ministry said the ministry would consider the businesses concerns and would follow it up with policy discussion.
"Most likely the regulation will be delayed in its implementation," Karyanto said.
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