President Prabowo Subianto has instructed the Red and White Cabinet to eliminate import quotas to support businesses, particularly those with global partnerships.
“I have given an instruction to eliminate import quotas, especially for goods that are related to the livelihoods of many people,” he said during the National Economic Forum in Jakarta on Tuesday.
The President’s directive aims to address complaints from businesses partnered with global companies, especially those from the US.
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.
Sudaryono said that the quota system that has been in effect so far is considered inefficient because it actually creates a long bureaucratic chain. The elimination of import quotas aims to simplify the business process and avoid practices that are considered unfair in determining quotas, he added.
Earlier, the Indonesian National Importers’ Association (GINSI) had urged the government to approach this policy with caution. They emphasized the need for a comprehensive and data-driven analysis, warning that the uncontrolled influx of imported goods could undermine domestic industries and weaken local products’ competitiveness.
The Indonesian Logistics and Forwarders Association (ALFI), on the other hand, has responded positively to the government’s recent policy shift that eliminates import quotas and relaxes Domestic Component Level (TKDN) requirements.
According to ALFI Chairperson M. Akbar Djohan, this policy could stimulate growth in the national logistics sector, while also presenting certain challenges that must be addressed proactively. He emphasized that the relaxation of TKDN regulations could ease the importation of components that are currently difficult to source domestically.
The government’s move to eliminate import quotas is part of a broader economic strategy introduced by President Prabowo Subianto.
During the “Economic Discussion with the President of the Republic of Indonesia” event at Menara Mandiri in Jakarta on Tuesday (April 08, 2025), Prabowo argued that import quotas have often led to inequality and limited access for many business players within the national supply 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.
Also see this related article: Indonesia’s Need for Food Imports
Here at Jalak Kargo Logistik we are experts in customs clearance, including quotas and duty calculations. Call us for further information on how the changes will affect your imports.
