National Conference PPA Cosmetics

akarta, 1 June 2016 – Companies and Entrepreneurs Association of Cosmetics Indonesia or commonly abbreviated as PPA Cosmetics Indonesia is a place where firms and associations gather together in the field of Indonesian cosmetics. Today (1/6) at Sasono Wiwoho Ki Mangunsarkoro No. 69, PPA Cosmetics held a National Conference (National Conference) II with the theme “Unite step in facing Challenges and Opportunities in MEA Era”. Present as speakers, the Chairman of PPA Cosmetics, Putri K. Wardani, Head of POM RI, Dr. Roy Alexander Sparringa, Minister of Health, Prof. Dr. Nila F. Djuwita Moeloek and Minister of Industry, Saleh Hussein.

In her speech, Chairman of PPA Cosmetics Putri K. Wardani said that, “ASEAN Economic Community, known as the ASEAN Economic Community (AEC is an ASEAN Economic Integration in the ASEAN Regional free trade deal). All ASEAN countries have agreed on this agreement. The main objective is to make the ASEAN Economic Community ASEAN as a single market and production base where the flow of goods, services, investment and skilled labor as well as the free capital flows more freely. Indonesia has become one important part of the ASEAN Economic Community”.

Putri continues stated that, the impact and consequences of MEA of free flow of goods and services from ASEAN countries, the impact of the free flow of services, the impact of free flow of investment, the impact of free flow skilled labor as well as the impact of the free flow of capital. But not only the impact, but there are some barriers to Indonesia in the face of MEA:

  • First, the quality of labor education is still low.
  • Second, the availability and quality of infrastructure is still lacking thus affecting the flow of goods and services.
  • Third, the industrial flow is still fragile due to dependence on imports of raw materials and semi-finish materials.
  • Fourth, the limitation of energy supply.
  • Fifth, the weakness of Indonesia onslaught of imports.

Therefore, to face MEA and Global Market is expected the government made strategic moves in the labor sector, infrastructure and industrial sectors.

In addition there are substantial and important issues to escort together especially for the cosmetics industry in Indonesia, among others:

1. National competitiveness to solve the problems of supply and high cost of energy, regulations are not in favor of the domestics industry, the high cost of raw materials and investment financing in the country and others.

2. Protection of the domestic market such as setting national standards with priority on products that compete directly with imported products. Protection against illegal goods by applying the system of supervision and control of imports by POM, Customs, police and others.

3. Enterprises and domestics industry also requires export support in the form of an increase

products that compete directly with imported products. Protection against illegal goods by applying the system of supervision and control of imports by POM, customs, police and others.
3. Enterprises and domestic industry also requires export support in the form of an increase in the role of trade and increasing the role of an Indonesian Export Financing Agency (LPEI).
4. In order to maintain the balance between the three (3) businesses: Modern Retail, Traditional Retail, National Industry in order to grow and develop together the PPA-Cosmetics still supervise the implementation of the Regulation No. 56 / M-DAG / PER / 9/2014 on guidelines for Planning and Development of Traditional Markets, Shopping Centers and Modern Stores among others require modern retail selling 80% of Indonesian products that domestic products get the channels to sell their products and creativity.
5. To maintain the resilience of Domestic Industry and Domestic Products of the invasion of imported products, especially cosmetics. PPA Cosmetics Indonesia has expressed objections to the issuance of Regulation No. 87 in 2015 on Imports of Certain Products in chapter 9: “The provisions of technical import verification or inspection as referred to in Article 6 (paragraph 1) does not apply to Import Cosmetics). Or Exclude “Cosmetics Sector” from “Mandatory Verification” in ports of origin.

PPA Cosmetics Indonesia has already made to the Ministry of Trade to keep re-enter the “Sector Cosmetics Compulsory Verification at the Port of Origin Country Imports” together with seven (7) Sector Other industries (which include: Food & Beverage, Traditional Medicine & Food Supplements, Garment & Textile, Cosmetics, Footwear, Electronics and Toys). As has been outlined in the Regulation No. 61 of 2013.
regarding with the issuance of Trade Minister Regulation number 22 in 2016 on the General Provisions of Goods Distribution.

PPA Cosmetics Indonesia has submitted feedback and suggestions on the Regulation of the Ministry of Trade RI remember there are some policies that adversely impact the industry players in the country, especially in the chapter. Article 6: 20 where “Importers that also acts as a distributor can sell goods directly to retailers’ deals with it according to PPA Cosmetics Indonesia proposes in Article 20 of the Regulation to be removed for the following reasons:
1.Because adverse Industry Producers and Actors who have done Domestic Capital Investments
Domestic Industry felt treated unfairly because the industry of the Interior or producer is set to distribute more goods while Importers given discretion in licensing and distribution.