By: Riady Putra )*
President Prabowo Subianto’s move to remove import quotas on a number of strategic commodities is a strong signal that the government is committed to building a more just and efficient national economic system. This policy not only reflects the courage to overhaul trade governance that has been full of the interests of certain groups, but also confirms a new direction for economic development that favors the wider community.
For years, the import quota system has been an instrument prone to abuse. The mechanism of limited appointment of certain importers has given rise to rent-seeking practices and inequality, because only a handful of parties have access to large market needs. In practice, this policy has also triggered a long and inefficient distribution chain, so that the cost burden must ultimately be borne by the end consumer. This situation creates price distortion and injustice, especially for low-income communities who are very sensitive to price fluctuations for basic necessities such as meat, sugar, or other strategic food ingredients.
By revoking the import quota system, the President is trying to create healthier and more open competition in the trade sector. Every business actor is given the same opportunity to access the market, without having to submit to bureaucratic procedures that have so far been a loophole for power games. This approach is certainly in line with the spirit of deregulation carried by the government, namely to facilitate the national business climate and accelerate inclusive economic growth.
However, it is important to note that the elimination of quotas does not mean free and uncontrolled import liberalization. The government is aware that the existence of domestic producers such as farmers, ranchers, and small industry players must remain a priority in national trade policy. Therefore, the elimination of quotas needs to be accompanied by policies to safeguard and strengthen the domestic production sector so that it can continue to compete healthily.
Deputy Minister of Agriculture Sudaryono emphasized that the government’s main focus remains on achieving food self-sufficiency. He explained that the quota system actually creates inefficiencies because the distribution chain is too long. In many cases, the recipients of the quota are not the final industry players, but intermediaries who then resell their import rights to the real business players. This causes the price of goods to increase when they reach consumers. Therefore, with the elimination of quotas, business players can directly apply for import permits to the relevant agencies without going through third parties, so that the process becomes more transparent and efficient.
Sudaryono also emphasized that the priority on domestic production remains the main foundation of this policy. The government continues to protect the national industry and ensures that import policies are complementary, not substitutive. This means that imports are only carried out to meet supply shortages that cannot be optimally met domestically, not to replace local production.
The realistic approach taken by the government also received support from the legislature. Deputy Chairman of Commission XI of the Indonesian House of Representatives M. Hanif Dhakiri assessed the President’s decision as a progressive and strategic step in reforming the national economic structure. For him, the quota system has so far created a closed and unfair trading ecosystem, because certain groups can control the market through political or bureaucratic proximity. With the elimination of quotas, opportunities for small and medium businesses to grow become more open, while simultaneously encouraging efficiency in prices and distribution of goods.
Hanif reminded that market openness must be accompanied by protection for domestic producers. The state has a responsibility to create fairness in competition, so that local business actors are not eliminated by cheaper imported products because they are supported by large subsidies from the country of origin. Therefore, the quota elimination policy needs to be complemented by strengthening the import substitution industry, namely strategic sectors that can produce substitute goods independently domestically.
Hanif also assessed that this policy also has strategic value in the context of international trade relations. The government’s approach to expanding import access from partner countries such as the United States can be an effective diplomatic instrument. However, this step must still be directed selectively and reciprocally. If Indonesia opens the market for other countries’ products, then trading partners must also provide fair export access for Indonesian products. This principle of balance is important to maintain national economic resilience while strengthening Indonesia’s position in the global economic arena.
In its implementation, the government is also encouraged to ensure that every policy instrument replacing quotas must be transparent, accountable, and fair. This is important so that no new loopholes are created that allow monopolistic or cartel practices that harm consumers and producers at the same time. The government is required to improve the licensing system, accelerate the distribution process, and guarantee legal certainty for business actors, so that the benefits of this policy can be felt by all levels of society.
With a firm policy direction and support from various parties, the policy of eliminating import quotas is not only a technical step in trade, but also part of a larger economic transformation. The government places justice and efficiency as the main pillars of economic development, by ensuring that every citizen can feel the benefits of the policies implemented.
President Prabowo Subianto’s move represents a leadership that is not only brave, but also on the side of the people. By eliminating the system that has created inequality and uncertainty, the government confirms its commitment to creating a healthy, fair, and inclusive market. This is not just about quotas or import figures, but about how the state is present to create true economic justice.
)* Foreign Trade Observer