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Chairman of Apindo Semarang Warns Against Flood of Cheap Chinese Goods, Poses a Threat to Local MSMEs

Chairman of Apindo Semarang Warns Against Flood of Cheap Chinese Goods, Poses a Threat to Local MSMEs

SEMARANG – The surge of products from China has become a growing challenge for local entrepreneurs and small and medium enterprises (MSMEs) in Central Java.

 

Chairman of the Indonesian Employers Association (Apindo) Semarang, Deddy Mulyadi, stated that the influx of Chinese goods into Indonesia — including Central Java — is a phenomenon that needs close attention.

 

According to him, the massive flow of consumer and industrial goods from the world’s second-largest economy could exert significant pressure on domestic MSMEs.

 

“Since China’s products are restricted from entering the U.S., they now have large stocks to offload — and Indonesia has become one of their target markets,” said Deddy on Sunday (Nov 9, 2025).

 

He further explained that this situation has led many Chinese entrepreneurs to establish businesses and factories in Indonesia, including in Central Java. For instance, in recent years, the number of Chinese-owned restaurants and factories has been steadily increasing.

 

“If we look around, there are now many Chinese-style eateries or shops opening up along the streets,” he added.

 

Deddy revealed that the influx of cheap consumer goods from China — such as textiles, ready-made clothing, and household products — presents a serious challenge to local industries.

 

“If Chinese products are cheaper and more efficient, of course consumers will choose them. That’s where our local MSMEs may suffer, as they can’t compete on price,” he warned.

 

He emphasized that this situation must be anticipated, as it could suppress domestic production, particularly for MSMEs that face higher production costs.

To maintain a healthy business climate, Deddy urged the government to strengthen import control and enforce tighter regulations.

 

He praised the government’s recent steps to intensify supervision through the Directorate General of Customs and Excise.

 

“The government is becoming stricter now, focusing on customs control. Imports must be tightly monitored so that illegal goods don’t enter our domestic markets freely,” he said.

Source: jateng.tribunnews.com

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