Prabowo Orders End to Import Quotas, Demands Streamlined Trade Rules
Main Takeaways
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JAKARTA, investortrust.id – President Prabowo Subianto has called for the removal of import quotas on essential goods, instructing his ministers to dismantle trade barriers that restrict open competition. Speaking before Indonesia’s business leaders and economists, the President said that such measures were crucial for strengthening the country’s economic resilience amid rising global trade tensions.
In a speech delivered during the Economic Roundtable with the President of the Republic of Indonesia, held at the Mandiri Tower in Jakarta on Tuesday, April 8, 2025, President Prabowo ordered ministries to eliminate the quota system, particularly for commodities critical to public welfare. These instructions, he said, had been directly conveyed to the Coordinating Minister for Economic Affairs, the Finance Minister, Bank Indonesia Governor, and the Head of the National Energy Council.
“I have already instructed the removal of all import quotas, especially for goods essential to the lives of many,” said the President. “Anyone who wants to import, go ahead. No more selective licensing. Let the market decide.”
Deregulation for Economic Growth
President Prabowo emphasized that the policy was part of a broader strategy to simplify bureaucracy and foster a business-friendly environment. He acknowledged the private sector’s vital role in job creation and urged businesses to meet their tax obligations as a contribution to national development.
During the event, he specifically highlighted beef as an example of an essential commodity that should be open to import competition. He directed the Minister of Agriculture and the Minister of Trade to grant import permissions without limiting them to specific companies.
“Let anyone import. Our people are smart,” he said. “The current quota system benefits only a few companies. That is unfair.”
Customs Reform and Anti-Smuggling Measures
In addition to calling for quota elimination, President Prabowo raised concerns over inefficiencies and illicit practices in Indonesia’s customs system. He urged business participants to report irregularities directly to the government and pledged swift action against violators.
“If there are implementation issues, report them immediately. We will act. Customs must be clean. No more unnecessary procedures that slow things down. Smuggling must stop. It threatens our industries and jobs,” he asserted.
Flexibility in Local Content Regulation
The President also took aim at Indonesia’s Domestic Component Level regulation, known as TKDN, stating that it should be made more flexible and realistic to enhance global competitiveness. He called for the regulation to be replaced with a system of incentives rather than strict mandates.
“I’m one of the most nationalistic people you know,” he said. “But we must be realistic. If TKDN is forced, we become less competitive. Let's replace it with incentives.”
Prabowo explained that issues around local content go beyond regulation and touch on broader challenges in education, science, and technological capability.
“Let’s revise TKDN to make it practical. Domestic capability is a complex issue—it’s not solved by raising quotas,” he said.
Technical Rules Must Have Presidential Approval
In a firm warning to ministers and bureaucrats, Prabowo ordered the removal of ministerial technical regulations, or Pertek, unless they have direct presidential approval. He noted that these regulations often override presidential decrees and complicate business processes.
“No more unnecessary technical rules. If a regulation is issued by a ministry, it must be approved by the President. Make it simple,” he declared.
A Call for Bureaucratic Introspection
President Prabowo concluded by urging his administration to reflect on existing regulations, especially those related to imports, and remove any that hurt the public or enable corruption. He demanded firm action against public officials involved in smuggling and regulatory abuse.
“Our people are still struggling. Do not engage in practices that harm them. I am warning all institutions—clean up and reform,” he said.
The President’s remarks were met with applause from the audience, and he welcomed further feedback from the business community to ensure effective policy implementation on the ground.