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Government Pushes for Import Deregulation to Strengthen National Industry

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Jakarta — The government’s import deregulation policy continues to garner positive responses from business players and the legislature. This measure is seen as part of an effort to strengthen the competitiveness of the national industry, accelerate the production process, and create a more conducive business ecosystem.

Adhi S. Lukman, Head of the Manufacturing Industry Division of the Indonesian Employers’ Association (Apindo), stated that import deregulation is a concrete step by the government to facilitate the manufacturing industry’s access to raw materials.

“We appreciate this as the right step. The government has carefully considered this policy to ensure that it strengthens the national industry and maintains a balance of interests,” said Adhi.

Adhi added that the classification of protected and unprotected industrial clusters is crucial to ensuring the appropriate flow of raw materials. He noted that many investors, including foreign investors, have high hopes for this regulatory improvement.

“We’ve received a lot of input from investors, including foreign investors, who are eagerly anticipating regulatory improvements. This is a positive sign. We hope they will be more confident in investing and producing in Indonesia, as well as creating added value domestically,” he said.

The government has officially deregulated the import of 10 commodities, including forestry products, subsidized fertilizers, plastic raw materials, and product groups such as saccharin, salamimat, alcohol-containing odorants, and other fuels. Five other commodities prioritized for deregulation include certain chemicals, pearls, food trays, footwear, and two- and three-wheeled bicycles.

This measure also received support from Kaisar Abu Hanifah, a member of Commission VII of the Indonesian House of Representatives (DPR RI), who believes that the deregulation will facilitate business operations, boost industrial competitiveness, and create jobs.

“I support the import deregulation and ease of doing business policies to provide convenience for businesses, boost the competitiveness of domestic industry, and create an ecosystem that supports job creation,” said Kaisar.

To optimize this policy, Kaisar encourages careful and comprehensive mapping of industrial sectors.

“Careful and thorough mapping of the raw material needs of relaxed industries must be carried out so that domestic industry can be protected,” he said.

He also encouraged the government to involve local industry players, academics, and industry associations in its implementation to ensure this policy truly supports the growth and competitiveness of national industry.

The government implemented this deregulation through the revocation of Minister of Trade Regulation No. 8 of 2024 and the issuance of nine new Minister of Trade Regulations based on commodity clusters. The business world, particularly in the labor-intensive manufacturing sector, welcomed this policy as a strong signal that the government is serious about responding to business aspirations.

Adhi S Lukman is also optimistic that this ease of doing business can strengthen the foundation of the Indonesian economy.

“I remain optimistic that this facility will reduce production costs. If costs decrease, our products will become more competitive. We are optimistic that this policy will significantly increase national exports and strengthen Indonesia’s trade balance,” he concluded. –

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