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Government Synergizes Import Deregulation and Local Industry Protection

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Jakarta – The government continues to strengthen synergy in aligning import deregulation policies with protection of domestic industries. Through cross-ministerial collaboration, especially the Coordinating Ministry for Economic Affairs, the Ministry of Trade, and related ministries and institutions, this deregulation step is certain to not only encourage ease of doing business, but also maintain the competitiveness and sustainability of the national industry.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, emphasized that deregulation of import policies is part of a strategic effort to strengthen the business ecosystem in Indonesia, while also responding to global challenges full of uncertainty.

“Deregulation (import policy) is a necessity requested by the President so that we are competitive, competition is getting stronger, and several countries are increasingly competitive amidst the current uncertainty,” said Airlangga.

Airlangga explained that this policy is also a proactive step to increase positive perceptions of Indonesia’s trading system in the eyes of global partners, as reflected in the Trade Barriers 2025 report by USTR.

“We know that there is room for improvement from the results of the review, and the government responded quickly through deregulation as proof of its commitment to continuous improvement,” he explained.

According to him, the current deregulation is the first stage of a series of import policy reforms that the government will launch.

“This deregulation is just the first package, so there are still several other things that we will do,” said Airlangga.

Responding to the move, Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Sarman Simanjorang, welcomed the deregulation but reminded that this policy must continue to provide protection for domestic industries, especially labor-intensive sectors such as textiles and garments.

“With optimal supervision, this policy will actually strengthen labor-intensive industries by increasing productivity and efficiency,” said Sarman.

He appreciated the supervision efforts in the field and considered the revision of the Minister of Trade Regulation as an opportunity to strengthen the certainty of supply of strategic raw materials amidst global challenges.

“The drafted Ministerial Regulation is expected to be able to protect domestic industry and ensure the smooth supply of important raw materials,” he said.

The deregulation includes simplifying licensing for 482 types of goods and 10 main commodities, including plastic raw materials, fertilizers, and food additives such as saccharin and cyclamate. Sarman also encouraged the involvement of business actors so that the policies formulated are more responsive to industry needs.

“I think this needs to be involved because there will be more input from business actors,” he concluded.

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