Indonesia's SME Ministry, Teten Masduki, wants Indonessia to stop importing hoes when it can be produced domestically. (Image via Indowarta)

SME Minister: No more hoe imports!

Indonesia’s Minister of Cooperatives and Small & Medium Enterprises (SMEs), Teten Masduki, promised to ensure that Indonesia will no longer import hoes by next year. It is under the command of the President of Indonesia, Joko Widodo, generally known as Jokowi.

Much to his shock, Jokowi stated his regret that hoes should not be imported since it can be produced domestically. Judging from Indonesia’s already advanced industries, Jokowi regretted that Indonesia has to import hoes.

Moreover, the President also said that the action is unwise, judging that Indonesia is facing the current account and trade balance deficits.

Speaking at Lapangan Banteng, Saturday, Teten pointed out that to fulfill the demand, domestic industries will be encouraged. State-Owned Enterprises (SOEs) will also cooperate with domestic metal craftsmen.

The SOEs involved are PT Krakatau Steel (Persero) Tbk., acting as steel supplier for the craftsmen; and, PT Bank Rakyat Indonesia (Persero) Tbk., responsible for the capital lending.

The SMEs Minister revealed that annually, Indonesia’s demand for hoes reached at least 10 million units. From the astronomical number, the domestic industries could only fulfill at least 3 million, and the rest is imported.

Moreover, Teten stated that metal craftsmanship in Indonesia is not weak. About 4 million hoes can be produced in West Java, and Central Java & East Java can produce 3 million. Previously, the raw material was the issue. But, now, Krakatau Steel can provide it in just a day.

Jokowi blamed the cheap price of imported hoes that pampered the Indonesian people. He encouraged the Indonesian people to support domestic hoes in spite of its price.

Meanwhile, Indonesia’s Ministry of Trade found out that most of these cheap hoes were illegally imported from China, sneaking to Surabaya, East Java, and Banten. It was the result of the investigation where the Trade Ministry found imported, final hoes inside a warehouse in Surabaya and Tangerang.

According to the Regulation of the Trade Ministry No. 30 of 2018 regarding provisions on the import of hand tools, these hoes are supposed to be intermediate.