The Mystery of 26,000 Containers: Challenges for the Ministry of Industry and Customs Data Transparency

Jakarta, INTI - The Ministry of Finance has not yet been transparent about the contents of 26,415 containers that were previously detained and then released from the port in May 2024. The Ministry of Industry (Kemenperin) needs detailed information to mitigate the impact of these container releases on the industry. Despite a decline in the performance of the domestic manufacturing industry in July 2024, as indicated by the Industrial Confidence Index (IKI) and contraction according to the S&P Global Manufacturing Purchasing Manager’s Index (PMI), Kemenperin has been unable to formulate policies or anticipatory measures due to a lack of data from the Ministry of Finance.

The Minister of Industry received a response letter from the Minister of Finance, delivered and signed by the Director General of Customs and Excise, on August 2, 2024, two weeks after the letter was signed on July 17, 2024. However, according to Kemenperin spokesperson Febri Hendri Antoni Arif, the data in the letter is too macro, lacks detail, and is only partial. "It seems as if some data on the contents of these tens of thousands of containers is being 'hidden,'" Febri stated in Jakarta on Monday (5/8).

Controversy Chronology

On June 27, 2024, the Minister of Industry sent a letter requesting data on the contents of 26,415 containers detained at the port to the Minister of Finance. However, the data received by Kemenperin on August 2, 2024, indicated that 21,166 containers contained raw materials and auxiliary materials (80.13%), 3,356 containers contained consumer goods (12.7%), and 1,893 containers contained capital goods (7.17%). This data was grouped based on the Board Economic Category (BEC) and further detailed the top ten types of goods in each category.

Kemenperin's Response

1. Need for Detailed Data: The Kemenperin spokesperson questions the urgency of issuing Minister of Trade Regulation No. 8 of 2024, which relaxes imports for finished goods/consumer goods, given that the majority of containers contain raw materials (80.13%).
2. Data Shortage: The contents of 13,421 out of 26,415 containers are not explained in detail. This is strange, considering all containers have been released from the port.
3. HS Code Discrepancy: The information provided is based on a 2-digit HS Code, whereas Kemenperin requires data based on an 8-digit HS Code to determine the exact imported goods.
4. Impact on Domestic Industry: Detailed data is needed to anticipate the impact of imported products that can be produced domestically.
5. Data Validity: Kemenperin requests valid and detailed data to formulate appropriate policies to curb imported products.
6. Destruction of Goods: Information regarding the destruction of some goods from the 26,415 containers needs further clarification, including when, where, and what type of goods were destroyed.

Policy Implications

The delay in sending the response letter by the Directorate General of Customs and Excise raises concerns about the existing administrative system. "Kemenperin needs valid, reliable, and quickly available data to anticipate the current decline in the performance of the domestic manufacturing industry," concluded the Kemenperin spokesperson.

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