Jakarta. Indonesian retailers are calling on the government to ease import licensing, warning that rising raw material costs are already feeding into supplier prices and could soon push up retail prices if supply constraints persist.

Chairman of the Indonesian Retailers and Tenants Association (HIPPINDO), Budiharjo Iduansjah, said retailers have started to receive price increases from suppliers in recent weeks, particularly for plastic-based products.

“We have already received price hikes from suppliers. Over the past two weeks, those increases have come in, and we are still negotiating to maintain previous prices. But if that is not possible, then we will have to adjust prices gradually,” Budiharjo said at SMESCO Indonesia, on Thursday.

He noted that while some retailers are trying to absorb costs through negotiations, upward pressure is beginning to filter through to consumer prices.

At the same time, retailers are facing difficulties importing finished goods that are not produced domestically, adding to the strain on supply and pricing.

“With current raw material pressures, import permits for finished goods not produced in Indonesia should be made easier and faster by the relevant ministries,” he said.

Budiharjo argued that easing such imports would help maintain product availability, especially for niche segments like branded textiles that do not directly compete with local micro, small, and medium enterprises.

“For example, branded textiles or premium goods sold in malls will not disrupt MSMEs. If these products are scarce, middle- and upper-income consumers will simply shop abroad, such as in Malaysia, instead of spending in Indonesia,” he said.

He added that facilitating imports could help retain domestic consumption and even attract foreign shoppers.

“Airfares are rising, so it is better to keep spending in Indonesia. Imports should be simplified, accelerated, and even expanded if necessary, so people do not shop overseas and potentially encourage foreigners to shop here,” Budiharjo said.

Retailers Pledge Tax Compliance
Despite pushing for looser import rules, retailers said they remain committed to fulfilling tax obligations, ensuring that the government still benefits from increased cross-border trade.

“People are willing to pay taxes, and we do pay taxes. Just provide the ease, and we will contribute to state revenue,” he said.

Retailers also urged the government to avoid introducing new regulations that could further burden businesses, particularly as geopolitical tensions continue to create economic uncertainty.

“Do not make things more complicated or introduce new permits for now. Focus on providing ease of doing business first,” Budiharjo said.

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