Jakarta – The government on Monday has unveiled a series of new import regulation that would ease access to specific goods and raw materials as well as eliminate overlapping rules that industry groups have long criticized as burdensome, ahead of July 9 deadline of ongoing bilateral tariff negotiations with the United States.
Coordinating Economic Minister Airlangga Hartarto said at the press conference that deregulation, through the easing of import licensing and the reduction of non-tariff barriers, is part of Jakarta's efforts to placate Washington.
"[Deregulation] will be conducted in stages. There are measures we've already implemented, and others will depend on the outcome of the tariff negotiations," Airlangga told reporters.
The previous Trade Minister regulations No.?36/2023 and 8/2024, which set conditions and quotas on many types of imports, would be nullified and replaced by "a more flexible" framework outlined in Trade Minister Regulation 16/2025 and its eight accompanying regulations tailored to specific sectors.
The updated rules would take effect 60 days after the upcoming issuance.
Five commodities prioritized for deregulation include forestry products, subsidized fertilizers, raw materials for plastic, other fuel types and food trays used in President Prabowo Subianto's flagship free nutritious meals program. These goods will no longer be subject to import restrictions, marking a shift away from the various limitations previously imposed on their importation.
Meanwhile, imports for products belonging to the other five groups, like saccharin, cyclamate, alcohol-based fragrance preparations, certain chemicals, pearls, footwear and two- and three-wheeled bicycles, would only require verification by state-appointed surveyor agencies, as opposed to import approval from related ministries currently mandated.
"So, we have grouped the trade regulations by sector to make it easier to adjust if needed, since these rules are dynamic and we need to stay responsive to future changes," Trade Minister Budi Santoso told a press briefing in his office.
Budi noted the new policy would create more certainty for businesses by eliminating overlapping rules.
Deputy Industry Minister Faisol Riza added the easing of import requirements and restrictions would also help industry players who have been asking for an easier way to import raw materials.
Business groups, especially the Indonesian Textile Association (API), have raised concerns that previous ministerial regulations actually opened the floodgates for imported goods, leading to a surge of foreign textiles in the market. This influx, they warned, is threatening the survival of local manufacturers.
The government said it would retain tight import controls on textiles sectors and related goods under the new trade rules, with added layers of oversight and safeguards for finished clothing products, the Trade Minister said.
All imported textiles products, including garments, finished apparel and accessories, would no longer require data verification to obtain the Trade Ministry's import approval, but will still need technical approval (Pertek) from the Industry Ministry, in addition to existing import permits and surveyor reports.
Extra safeguards would also be applied at the border to protect domestic producers.
Source: https://asianews.network/indonesia-to-relax-import-rules-as-us-tariff-deadline-nears