By: Ranti Swari )*
President Prabowo Subianto’s decision to abolish the import quota system is an important marker in the national economic reform agenda. This policy is not only a response to global dynamics, but also a strategic step to build a more open, transparent, and efficient trade ecosystem. In the context of increasingly tight global competition and the dominance of rent-seeking practices in trade so far, the President’s decision to end the quota system is a reflection of political courage and real support for a healthy business climate.
The elimination of import quotas is not merely an opening of the floodgates for goods from abroad. This step is intended to dismantle discriminatory practices in the import distribution mechanism that has so far only benefited a handful of parties. Quota provisions often create barriers for new business actors to enter the market, because permits are only given to certain parties who have received exclusive access. As a result, market competition is distorted, prices become inefficient, and consumers lose product alternatives.
In this context, support from various groups for the President’s steps seems quite solid. Member of Commission VI of the Indonesian House of Representatives, Rivqy Abdul Halim, for example, sees the plan to eliminate quotas as a form of the President’s commitment to building a fairer and more open national trade ecosystem. He believes that this approach can minimize the rent-seeking practices that have been inherent in the import process and at the same time encourage overall economic efficiency.
According to Rivqy, serious mitigation is needed against the potential flood of foreign products and the possibility of pressure on local business actors. Therefore, the government has prepared a balancing scheme through tax relaxation, simplification of business regulations, and a review of regulations such as Permendag Number 8 of 2024 which are considered to burden business actors in several sectors. This policy will be a concrete instrument in maintaining the competitiveness of the national industry amidst market liberalization.
The Ministry of Finance also views this step as a much-needed structural improvement. Minister of Finance Sri Mulyani emphasized that the quota system so far has not only failed to provide fiscal contributions to the country, but has also complicated international trade governance. On the other hand, the policy often lengthens the distribution chain and opens up uncertainty for business actors, which ultimately reduces national logistics efficiency.
The government, through the Ministry of Finance and other technical ministries, is currently preparing a more modern and information technology-based import licensing system. The digitalization of the import process is intended to reduce bureaucracy, speed up the flow of goods, and reduce the room for manipulation in the permit application process. This step is part of a national digital transformation that not only targets the economic aspect, but also strengthens the accountability of state governance.
In terms of strengthening the spirit of entrepreneurship and market openness, the General Chairperson of DPP AMPI, Jerry Sambuaga, assessed that the President’s move to open up import opportunities as widely as possible for business actors has a long-term positive impact. With more equitable access, entrepreneurs, especially those just starting out, can participate directly in international trade without having to rely on third parties. This will strengthen the spirit of healthy competition, lower product prices, and add alternative choices for consumers.
Jerry also ensured that this policy is not directed at products alone, but at business actors. By providing equal opportunities, the government is forming a more inclusive market structure. At the same time, the government continues to pay attention to strategic commodities that can be developed as superior export products, in line with the increasing global demand trend.
The global geopolitical context is also an important background for this decision. With the United States’ tariff policy on imported products from various countries, including Indonesia, the government views that eliminating quotas can be a balancing tool in dealing with external pressures. Although the tariff policy was eventually postponed, the government does not want to be in a purely reactive position. The long-term strategy remains focused on diversifying trading partners and strengthening Indonesia’s position in various international trade agreements.
So far, Indonesia’s trade performance has shown positive performance. The trade balance surplus for 56 consecutive months is proof that Indonesia is not only resilient in facing global challenges, but also has high competitiveness in the world market. The completion of more than 30 trade agreements on five continents also provides a strong foundation in facing the transformation of future trade policies.
One of the main pillars that is being strengthened is the MSME sector. Although the contribution of MSME exports is still low, this sector contributes around 61% to Gross Domestic Product and is the backbone of national employment. Therefore, the quota elimination policy is not designed to weaken MSMEs, but rather to expand their access to raw materials, technology, and global markets.
The overall direction of this policy shows President Prabowo’s courage in restructuring the foundation of national trade. By placing transparency, efficiency, and openness as basic principles, the government is not only responding to short-term problems, but is also building a sustainable trade ecosystem that is resilient to global shocks. In this vision, siding with national business actors, protecting consumers, and creating a healthy business climate go hand in hand in one large framework of Indonesia’s economic reform.
)* Observer of Foreign Trade & Economic Issues