ENGLISH PAPER ASSIGNMENT

THE IMPACT OF IMPORT

ARRANGED BY : YASINTA KHUSNA AMALIA SANI

NIM : 18313307
CLASS :F

DEPARTMENT OF ECONOMICS
FACULTY OF ECONOMICS
ISLAMIC UNIVERSITY OF INDONESIA
2018/2019
 Import is the inflow of a number of goods and services to a market
country, both for consumption purposes or for capital goods or for domestic
production raw materials (Katijah, 2016). Imports generally require interference
from customs in sending and receiving countries. Imports are carried out to meet
people's needs. Imported products are goods that cannot be produced or countries
that can already be produced, but cannot be sufficient people's needs (Benny, 2013).
Imports are an important part of trading international. Imports are a reflection of
sovereignty the economy of a country, whether goods and domestic-made services
are still the master in their own country (Atmadji, 2004). Import activities will take
place! If the material to be supplied to the country is more foreign. Como type
import density concerns bags of raw materials and auxiliary materials for supporting
domestic industries (Yuliadi, 2008). (Tim Analisis, 2015) Argue:

The Minister of Trade of the Republic of Indonesia issued a new

regulation through Permendag No. 73 / M-DAG / PER / 10/2014 which has 3
policies substances regulated in certain product import provisions, wich are: imports
made by Registered Importers (IT), imports carried out through certain sea ports
and ports international air, and for imported goods technical verification is carried
out at the port of origin of the goods (p. 2).

Regarding to import activities, there are 3 trade policies that can be applied, which
are: the imposition of import tariffs (customsentry), import quota determination,
and giving import monopoly rights or restrictions on number of importers (Abidin,
2015). This thesis statement paper will explain the impact of import.

In Krismonika (2017)’s opinion there are 2 effects of imports, which are positive
and negative impacts.
The first positive impact of imports is to improve consumer welfare. With
the import of consumer goods, Indonesians commonly use goods that cannot be
produced domestically. Secondly, improve domestic industry. With the import, this
country can get the opportunity to import capital goods, both in the form of
industrial machinery and raw materials that enable it to develop an industry.
Thirdly, it is technology transfer. With the impotence, it is possible to change
technology. Gradually, our country is trying to develop modern technology to
reduce our lagging with developed nations (p. Np)
However, the first negative impact of imports is to create unemployment.
Because Indonesia always importing goods from abroad, Indonesia does not have
the opportunity to produce these goods. Thus Indonesia has lost the opportunity to
be created by the production process of these goods. The second, Creating
competition for domestic industries. Besides getting the opportunity to develop the
domestic industry through the import of capital goods, but it can happen otherwise,
our industry does not develop because competitors faces abroad.
Third, Consumerism. The consumerism of consumption of imported goods which
causes the country's foreign exchange to continue to decrease. Therefore, to
minimize the negative impact, restrictions on imports are carried out by protecting
producers in the country (Claudia).

In conclusion, import policy as a short-term policy certainly has an

economic and social impact on a country. The positive and negative impacts of
imports are positive: obtaining raw materials, acquiring goods and services that
cannot be obtained by themselves, acquiring modern technology, increasing income
or state income, negative: increasing unemployment, creating competition for
domestic industries, and consumerism. And the advice is: the government must
suppress import growth, for example by reducing imports of products branded and
imported raw materials which will later be used for export purposes. To support
supervision towards the trade system of imported goods, the Government can
consider changes to the rice code import based on quality level. There needs to be
population control and quality improvement human resources so that it can increase
income for the community. The government should be able to maintain economic
stability in the country and increasing domestic production activities so as to reduce
dependence on imports from abroad.
Bibliography
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