Retailers in Indonesia say new government import restrictions will reduce their efficiency and push up fresh produce prices.
Under the new regulation retailers are prohibited from directly sourcing fresh produce from abraod and must rely solely on local distributors.
Indonesian Retailers Association (Aprindo) deputy secretary-general Satria Hamid said retailers would suffer as a result of the regulations.
“The new rule makes the distribution chains longer because we must source `horticulture products` through distributors and this will surely push up costs,” he said during a press briefing in Jakarta.
According to the Jakarta Post, the country’s director general for foreign trade Deddy Saleh said the move would target retailers buying fruits and vegetables rejected by other countries and selling them at discounted prices.
Retailers say the regulation would impose additional costs on top of those anticipated when the government enacts fresh produce import bans at a number of ports – including the main seaport in Jakarta.
Aprindo executive director Tutum Rahanta the regulation would also affect products imported in small volumes.
“The market share of the horticulture products imported directly by retailers is usually small, and therefore, local distributors are not willing to import them,” he said, adding that local retailers would not be able to obtain specific products to diversify their offer.
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