Indonesian Government Guarantees Import Deregulation Remains Measured

JAKARTA, KOMPAS – The Indonesian government ensures that the deregulation of imports concerning essential commodities remains well-measured. It is impossible for the government to carelessly deregulate import policies without considering domestic producers and industries, let alone sacrificing food self-sufficiency.

This was stated separately by Minister of Agriculture Andi Amran Sulaiman, Head of the National Food Agency Arief Prasetyo Adi, and Deputy Minister of Agriculture Sudaryono on Thursday (10/4/2025). The statement was a response to the discourse on opening import channels and removing import quotas for commodities essential to public welfare, as proposed by President Prabowo Subianto on April 8, 2025.

Amran stated that the President's remarks regarding the relaxation of imports cannot be viewed in isolation. All this time, the President has prioritized the interests of the community, particularly his alignment with the underprivileged.

"Imports are a technical matter. If the people need it, it will be carried out. If the people do not need it, it will not be carried out. The key is to side with the people. We at the Ministry of Agriculture always stand by the farmers," he stated during the Bugis-Makassar Entrepreneurs Gathering in Makassar, South Sulawesi.

Amran also did not deny the impact of the U.S. reciprocal tariffs on Indonesia's exports. However, the Indonesian government will be able to address these impacts, so there is no need for excessive concern.

He exemplified that Indonesia has been exporting palm oil and biodiesel to the United States at approximately 1.7 million tons. If these exports decrease due to the impact of U.S. tariffs, Indonesia could utilize them for the domestic market, including for the B40 and B50 programs.

Indonesia can also redirect palm oil exports to other countries. In addition, if the United States demands a trade balance, Indonesia can increase imports of commodities not available domestically, such as wheat.

Elsewhere, Arief and Sudaryono also responded to the discourse on import deregulation raised by the President. They addressed questions from journalists after attending a press conference on the follow-up to Presidential Instruction Number 9 of 2025 regarding the Acceleration of the Establishment of Village/Subdistrict Cooperatives in Jakarta.

Arief said that the opening of the import tap referred to by the President does not mean opening imports as widely as possible so that it has the potential to kill domestic food producers and industries. In the context of food, the opening of imports remains only for commodities that cannot be produced domestically or when commodities whose production is lacking domestically.

The determination of the import quota also still refers to the commodity balance, so that food self-sufficiency continues. This is important considering that Indonesia also needs to meet food needs independently and protect farmers and ranchers.

"The only problem is who will import. Imports are opened as widely as possible, meaning not limited to 1-2 companies or those companies. Import quotas have been determined based on the commodity balance, only the importers who have so far also been a combination of state and private companies," he said.

In the context of food, the opening of imports remains only for commodities that cannot be produced domestically or when domestic production of commodities is lacking.

In addition, Arief also emphasized that opening imports for the sake of the US trade balance does not mean opening the tap for all food commodities. Only commodities that are lacking or cannot be produced domestically will be imported, such as meat, soybeans, and wheat.

Sudaryono also revealed something similar. Indonesia's main priority in the era of President Prawobo remains food self-sufficiency. Imports only apply to commodities that cannot be produced domestically or when Indonesia has a deficit of certain food commodities.

What the President wants is to open up imports for industries that really need imported raw materials. There is no need for other unrelated parties to be given import quotas.

"For example, if you need to import frozen meat, which requires industry, then just let the industry import. There is no need for a particular party to be given a quota. The chain can be longer, because the one who is given a special quota also regulates it," said Sudaryono.

Need to be careful

Meanwhile, the Indonesian government is asked to remain careful in deregulating import policies in order to protect domestic producers and industry players. On the other hand, the policy is also needed by business people or investors from the United States.

This emerged in the seminar "Regonal Response to Trump 2.0" held by the Center for Strategic and International Studies (CSIS) Indonesia in a hybrid manner in Jakarta, Thursday (10/4/2025). The two speakers at the seminar were professor of international economics at the Faculty of Economics and Business, University of Indonesia and Deputy Chair of the National Economic Council Mari Elka Pangestu, and Managing Director of the American Chamber Indonesia Donna Priadi.

Let's say, President Prabowo has at least mentioned a number of key steps taken by Indonesia to face US reciprocal tariffs. Some of them are negotiating with the US, diversifying export destinations, and deregulating import policies.

Import deregulation is indeed necessary because the US questions a number of RI's non-tariff policies that are considered detrimental to the US. However, the deregulation still needs to consider Indonesia's interests and the sectors that will be affected.

"The electronic equipment, textile and textile products, footwear, shrimp, and wood products (furniture and crafts) industries will be significantly impacted by US tariffs. Don't let these sectors be further disrupted during the tariff adjustment and import policy deregulation process," he said.

In the same forum, Donna stated that US businesspeople in Indonesia appreciated the Indonesian government's move to choose diplomacy rather than retaliation. This move helped reduce the impact of the US reciprocal tariffs on US businesspeople and their business partners or vendors in the US.

US businessmen in Indonesia also support the Indonesian government's move to strengthen bilateral, multilateral, and regional trade cooperation, including with ASEAN. To that end, US businessmen in Indonesia will try to help increase business cooperation and partnerships with US or other country businessmen in countries or regions targeted by Indonesia.

"On the other hand, we also emphasize the importance of the Indonesian Government reforming a number of its regulations as stated by President Prabowo. The regulatory reform is not merely a response to the US reciprocal tariffs, but more so for the sake of ease of doing business and investment in Indonesia," said Donna.

We also emphasize the importance of the Indonesian Government reforming a number of its regulations as stated by President Prabowo. The regulatory reform is not merely a response to US reciprocal tariffs, but more so for the sake of ease of doing business and investment in Indonesia,

He explained that US businessmen in Indonesia support the import procedures in Indonesia to remain a mainstay of domestic industrial growth. However, the procedures are also expected to be less complicated and costly for investors and businessmen from other countries.

US businessmen in Indonesia also support the domestic content level (TKDN) policy to protect and develop domestic industries. However, US businessmen in Indonesia also hope that TKDN can be more flexible and open to the development of other values.

"We want the TKDN space to be wider, not only in the form of physical or components and construction of manufacturing facilities. We want TKDN to be more flexible, such as the development of innovation, research, and human resources," said Donna.