Safeguarding Local Brand

VIVAnews - The Department of Trade should issue a safeguard-like instrument to prevent inexpensive products from circulating in the short run following recent sale offered by a famous shoe brand Crocs in one of its outlets, last week, in Jakarta.

Director General of Metal, Machinery, Textile and Multifarious Industries, Anshari Bukhari, said on Monday, April 27, that such a sale offer may be carried out "deliberately to fight against the government's campaign." As reported earlier, the Indonesian government is currently running a campaign to popularize Indonesian brands.

Furthermore, he explained that famous brands that cut prices can still gain profit.

A reason for this is that discounted products are possible because there is rejected order. "For example, an order from a country may be cancelled because of the decreased demand despite the 30 percent down-payment," he said. Having been paid by 30 percent, a producer can freely market the products to other countries.

"Moreover, the 17 percent tax rebate from the government of China has [enabled a producer] to gain earn 47 percent," he concluded.

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Translated by: Ariyantri E. Tarman