Jakarta – In a press conference held at the Office of the Coordinating Ministry for Economic Affairs, the Coordinating Minister for Economic Affairs, Airlangga Hartarto stated that deregulation is very important to increase Indonesia’s competitiveness amidst tight global competition.
“Complex and overlapping regulations have been an obstacle to import activities, especially for industrial raw materials. With this simplification, business actors can run business activities more efficiently,” he said.
This deregulation step is carried out through the revocation of Permendag No. 36 of 2023 in conjunction with Permendag No. 8 of 2024, and replaced by nine new ministerial regulations of trade (Permendag) based on certain commodity classifications. The nine regulations cover the textile, agriculture, chemicals, consumer goods, electronics, to non-new goods and non-B3 waste sectors.
The government also specifically relaxed import provisions for 10 types of commodities, including forestry products, subsidized fertilizers, plastic raw materials, certain chemicals, and other consumer goods. These commodities were previously subject to bans or restrictions (lartas) which were considered to slow down the industrial logistics process.
In addition to the relaxation of main commodities, the government ensures that the monitoring system continues to run through the CEISA system at the Directorate General of Customs and Excise. This mechanism allows related agencies to provide a quick response to potential negative impacts from imported goods, with a maximum processing time of 14 working days.
Airlangga explained that this deregulation maintains a balance between the smooth flow of goods and the protection of domestic industries. He added that import duty rates have not changed, so they have no impact on state revenues.
This step was also welcomed positively by the business world. The General Chairperson of the Indonesian Employers Association (Apindo), Shinta Widjaja Kamdani, stated that the deregulation carried out by the government was a breath of fresh air for business actors.
“This package is very positive because it not only simplifies procedures, but also cuts logistics and operational costs, thus supporting increased investment and job creation,” he explained.
As part of the broader reforms, the government also launched three special task forces, namely the Export Task Force, the Licensing Acceleration Task Force, and the Job Opportunity Expansion Task Force. The task forces are tasked with ensuring that policy implementation is effective in the field and overseeing the national structural reform agenda.
In the domestic trade sector, the Ministry of Trade also issued Permendag No. 25 of 2025 which simplifies the franchise business licensing process, where permits are considered valid a maximum of five days after registration. In addition, Permendag No. 26 of 2025 revokes four regulations that are considered to overlap with the latest government regulations.
This import deregulation policy is also considered important in the context of Indonesia’s negotiations with the Organization for Economic Co-operation and Development (OECD) and the restructuring of its trade partnership with the United States. Through this policy, Indonesia is expected to improve its position in the global supply chain and increase foreign investor confidence.
With this deregulation, the government confirms its commitment to creating a more open, transparent, and highly competitive business climate. Further evaluation of this policy will continue to be carried out periodically to ensure effectiveness and anticipate potential risks to the domestic industry.
