By: Hafidz Rindrahutama )*
The Indonesian government has once again demonstrated its commitment to boosting national economic growth through its recently issued import deregulation policy. This measure is a breath of fresh air for businesses and the domestic industrial sector, which have been hampered by cumbersome licensing and regulatory processes. By simplifying procedures and eliminating various administrative barriers, industrial players can now access raw materials and supporting goods more quickly and efficiently. This policy is expected to increase the competitiveness of the domestic industry, especially amidst increasingly complex global challenges.
A member of Commission VII of the Indonesian House of Representatives, Kaisar Abu Hanifah, explained that the government’s move to deregulate import policies will facilitate doing business. He explained that he supports the policy as long as it facilitates business actors, boosts the competitiveness of the domestic industry, and creates an ecosystem that supports job creation. This is crucial for the implementation of this policy to have a positive impact on industrial players, particularly in meeting the raw material needs of the domestic industry.
Previously, industry players often complained about the time-consuming and expensive import process due to the numerous technical and non-technical requirements that must be met. This impacted the smooth flow of production and price adjustments in the domestic market. With the implementation of the deregulation policy, import permits for various commodities, especially industrial raw materials, no longer require multi-layered licensing processes. The government also facilitated accelerated customs clearance at ports, which had long been a weak point in the national distribution chain.
Minister of Industry, Agus Gumiwang Kartasasmita, explained that his office, along with the Ministry of Trade, had compiled a list of goods that fall under the deregulated category. This includes chemical products, textiles, electronics, and machine components, which are essential to support production activities in various manufacturing sectors. Through this policy, the government aims to create a more conducive and efficient business ecosystem and reduce reliance on bureaucracy, which has hampered logistics flows. Regulatory adjustments were also made with reference to international standards to ensure product safety and suitability.
This deregulation measure not only provides convenience for large businesses but also significantly helps the MSME sector, which has previously experienced difficulties in gaining access to imported raw materials. With lower logistics and licensing costs, small and medium-sized businesses can expand their operations and improve product quality to compete in the global market. The government also ensures strict supervision through digital systems and regular audits to prevent misuse of import facilities.
Import deregulation is also part of the government’s broader strategy to encourage the downstreaming of the national industry. Easier access to raw materials is expected to accelerate the production process and diversify final products. This will have a positive impact on increasing the added value of Indonesian commodities and opening up greater export opportunities. This policy is also considered strategic for attracting investment, both domestic and foreign, as it demonstrates a more welcoming and efficient business climate.
However, this deregulation policy continues to raise concerns from some parties, particularly regarding the potential influx of imported goods that could threaten the sustainability of local industries. Piter Abdullah, an economist and Policy and Program Director at the Prasasti Center for Policy Studies (Prasasti), suggested that the import deregulation policy must be accompanied by legal strengthening to prevent the entry of illegal imports. Strengthening the on-the-ground monitoring system is paramount to prevent misuse of the relaxation. Because creating a healthy and competitive business climate must also be accompanied by eradicating smuggling and improving a transparent licensing system.
In its implementation, synergy between government agencies is key to the success of this policy. The roles of Customs, the Ministry of Industry, and the Ministry of Trade are crucial in ensuring that this policy is implemented effectively without causing market distortions. Furthermore, the involvement of the business community in providing input and feedback on the implementation of this deregulation policy is crucial to ensure that the policies truly align with real needs on the ground. The government has also provided online consultation services to facilitate business actors in understanding the new regulations.
ThroughThe government hopes that its import deregulation policy, which targets efficiency and ease of doing business, will strengthen the foundation of the national industry in facing global challenges. The business community has responded positively to this policy, believing it will stimulate growth, accelerate post-pandemic economic recovery, and enhance the resilience of the domestic industry. With a more transparent, expeditious, and integrated system, Indonesia is further strengthening its position as a competitive investment destination and regional production hub.
)* Postgraduate Student in Renewable Energy Engineering, Darma Persada University
