Indonesia Finalizes Import Rule Overhaul, Aligning with Prabowo’s Push to Remove Quotas

---

JAKARTA, investortrust.id — Indonesia has finalized the substance of its revised import regulation, in line with President Prabowo Subianto’s sweeping directive to eliminate import quotas and open the economy to fairer competition. Trade Minister Budi Santoso announced on Wednesday, June 4, 2025, that the amendment to Ministerial Regulation No. 8 of 2024 has been completed in substance, with only administrative processing remaining.

The revision supports the President’s April 8 declaration that quotas on essential goods must be scrapped to boost economic resilience amid growing global trade uncertainty. Speaking at an economic roundtable at Mandiri Tower, Jakarta, Prabowo called on ministries to remove selective import licensing and allow market mechanisms to determine supply.

“I have already instructed the removal of all import quotas, especially for goods essential to the lives of many,” the President said. “Anyone who wants to import, go ahead. No more selective licensing. Let the market decide.”

Trade Minister Budi confirmed that the regulatory adjustments reflect this mandate. “Permendag 8 is actually ready. The substance is already finalized,” he said at the Ministry of Trade office. “It’s just a matter of finalizing the administrative process. But all parties have agreed on the changes.”

Budi, who formerly served as Secretary General at the ministry, underscored that the revised regulation aims to streamline import flows without compromising national interests.

Manufacturing Still a Priority

While the new policy removes quotas, Industry Minister Agus Gumiwang Kartasasmita emphasized that Indonesia must continue to support its manufacturing base. He welcomed the revision and noted that inter-ministerial consensus reflects a shared understanding of the strategic role of domestic industry.

“The government is fully aware that manufacturing is the backbone of our economy,” Agus said at a public event in early May. “This is not about protectionism — it’s about ensuring we protect workers and productivity. That’s a shared awareness across ministries.”

Agus warned that failing to protect domestic manufacturing could lead to a drop in output and job losses, underscoring the importance of balancing liberalization with targeted support.

The revised regulation is expected to ease supply bottlenecks, reduce compliance friction, and send a positive signal to importers and business stakeholders.