Prabowo Pushes Deregulation to Safeguard Economy, Bolster Indonesia’s Trade Stance with U.S.
Main Takeaways
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JAKARTA, Investortrust.id — President Prabowo Subianto has proposed a series of tactical steps to shield Indonesia’s domestic economy and strengthen its position in ongoing tariff negotiations with the United States.
The initiatives were discussed during a closed-door meeting with key ministers at the Merdeka Palace on Friday, June 27, 2025, following President Prabowo’s bilateral meeting with Malaysian Prime Minister Anwar Ibrahim.
According to Cabinet Secretary Teddy Indra Wijaya, the high-level meeting focused on Indonesia’s response to mounting global economic challenges, the status of tariff talks with the U.S., and efforts to revitalize regional cooperation in Southeast Asia.
“One of our key responses to current economic headwinds is deregulating the real sector by simplifying Trade Ministry Regulation No. 8/2024 into sectoral arrangements to ensure greater flexibility,” Teddy said in a statement on Saturday, June 28.
Revamping Import Rules
Trade Ministry Regulation No. 8/2024 governs Indonesia’s 2024 import policy framework. The government now seeks to streamline it to cut red tape and encourage a more business-friendly environment.
President Prabowo reportedly underscored the urgency of fostering a competitive business ecosystem by removing burdensome licensing requirements that have hampered investment and productivity.
“He has instructed that deregulation in the real sector must enhance competitiveness by eliminating excessive bureaucracy, thus helping sustain economic growth,” Teddy added.
Advancing U.S.-Indonesia Trade Talks
The meeting also reviewed recent developments in tariff negotiations between Jakarta and Washington. Officials noted that both countries have strategic interests in forging a mutually beneficial trade relationship.
“Both sides are committed to a win-win solution, recognizing the strategic nature of bilateral economic ties. Negotiators are now intensely reviewing each side’s offers and demands,” Teddy said.
He further revealed that Indonesia had received strong support from top U.S. economic officials, including U.S. Secretary of the Treasury Scott Bessent and United States Trade Representative Jamieson Greer.
“Their response to Indonesia’s initiative to deepen economic cooperation with the U.S. has been overwhelmingly positive,” Teddy said.
Friday’s limited cabinet meeting was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of State Secretariat Prasetyo Hadi, alongside Cabinet Secretary Teddy.