Leonard AL Cahyoputra, Jakarta – Indonesia has one of the lowest counts of non-tariff barriers (NTBs) and non-tariff measures (NTMs) in the world – a reality the Industry Ministry sees as a key obstacle to boosting the competitiveness of local industries.
While NTBs and NTMs are widely used by developed economies to shield their domestic industries from foreign imports, Indonesia has yet to fully adopt such protective policies.
Industry Ministry spokesperson Febri Hendri Antoni Arief said Indonesia currently imposes only around 370 NTBs. In contrast, China has more than 2,800 such policies, India over 2,500, and the European Union around 2,300. "Even Malaysia and Thailand each have more than 1,000 NTBs and NTMs," Febri said in a statement on Thursday.
This imbalance in protective instruments, Febri explained, leaves Indonesian manufacturers struggling to compete both at home and abroad. Indonesian exporters often face numerous non-tariff requirements from their destination countries – such as quality standards, testing, and recommendations – which their products must fulfill before entering those markets.
To address this, the ministry is pushing for stronger industrial safeguards through regulations that comply with World Trade Organization (WTO) rules. "We must make optimal use of non-tariff measures to help local industries grow and compete fairly," he said.
The government is currently reviewing strategic sectors that may require stronger non-tariff protections, including textiles, chemicals, steel, electronics, and automotive industries. "Our goal is not just to serve as a market for foreign goods, but to reinforce and deepen our own industrial base," said Febri.
He also called for stronger inter-ministerial cooperation and support from the private sector to defend national interests amid growing global challenges. "With strong collaboration and coordination among stakeholders, we're optimistic that the industrial sector can recover and thrive," Febri said.
As the country faces ongoing labor market pressures, the government will prioritize safeguarding the domestic industry – especially from the surge of low-cost imports. "Protecting local industry means protecting our workforce as well," he added.
Questioning trade ranking transparency
Febri also responded to a recent survey by the Tholos Foundation, which ranked Indonesia 122nd in its 2025 International Trade Barriers Index. He criticized the ranking, alleging that the organization lacked transparency in its data and methodology.
"It's similar to those questionable polling agencies that release survey results just before elections," he said.
According to Febri, credible international benchmarks such as those from the WTO show that Indonesia's NTB count remains significantly lower than those of many developed and neighboring countries.
He suggested that certain interests may prefer to see Indonesia struggle in its pursuit of becoming an advanced economy. However, he emphasized that Indonesia has significant potential – from its natural resources and large domestic market to its demographic dividend.
"These are assets we must maximize, particularly in strengthening the industrial sector, which is key to achieving the vision of a Golden Indonesia by 2045," Febri said.