Indonesia ends import quotas, vows protection for local industries

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Deputy Minister of Agriculture Sudaryono has emphasized that the policy of eliminating import quotas would not harm domestic industries and ensured that the government would continue to prioritize protection of local production, especially in the food and energy sectors.
This policy is a follow-up to the direction of President Prabowo Subianto who requested the elimination of import quotas in order to create a healthier and more efficient business climate. The president’s statement was made upon hearing complaints from entrepreneurs who partnered with global companies, especially from the U.S., during a recent Economic Symposium in Jakarta.
Entrepreneurs complained that import regulations in Indonesia often create uncertainty in the business negotiation process, which is considered to be able to hinder smooth cooperation and even delay business realization.
Therefore, in order to ensure certainty in the import mechanism, Prabowo considered that the elimination of quotas needs to be implemented as part of deregulation efforts to maintain a healthy business competition climate in Indonesia.
“(It's) Free (to import important commodities). We no longer point out that only this is allowed, (or) that is not allowed. That is one of our efforts to streamline and facilitate the business climate,” Prabowo said on Tuesday, April 8, 2025.
Sudaryono said that the elimination of import quotas aims to simplify the business process and avoid practices that are considered unfair in determining quotas.
“For example, if you need to import frozen meat for industry, then just let the industry import. There is no need for a particular party to be given a quota, then he is the one who regulates the amount. According to the President, that is unfair,” Sudaryono said on Thursday, April 10, 2025.
Sudaryono said that the quota system that has been in effect so far is considered inefficient because it actually creates a long bureaucratic chain.
In the future, business actors will be given the freedom to apply for import permits directly to the Ministry of Agriculture or the Ministry of Trade, without having to go through a rigid quota system.
"We protect what is within the country, that's for sure. It doesn't mean that it is opened as widely as possible and then the domestic industry dies. Not like that," he said.
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