Indonesia to ease import restrictions ahead of US tariff deadline
Trade Minister Budi Santoso said the new policy would create more certainty for businesses by eliminating overlapping rules. PHOTO: REUTERS
Indonesia to ease import restrictions ahead of US tariff deadline
JAKARTA - Indonesia will ease import restrictions and rules on many goods and raw materials in a bid to make it easier to do business in the country, officials said on June 30, ahead of the July 9 deadline for tariff negotiations set by the United States.
While Indonesia is South-east Asia's largest economy, traders have historically complained about excessive red tape.
The matter was also highlighted in a recent report by the US Trade Representative on foreign trade barriers.
The easing includes the removal of import licensing requirements for certain goods and the exclusion of some industrial raw materials - including plastic and chemical products - from the imports restriction list, a presentation by Indonesian officials at a press conference showed.
Coordinating Minister for Economic Affairs Airlangga Hartarto, speaking at the event, said the policy actions would affect 10 groups of commodities and would come into effect in two months.
Officials did not specifically say the action was linked to tariff negotiations with Washington.
'President (Prabowo Subianto) instructed all ministerial bodies to ensure the process of business licensing is not hindered by a long bureaucratic process,' said Mr Satya Bhakti Parikesit, an official at Indonesia's state secretariat ministry.
Trade Minister Budi Santoso said restrictions would be eased on products including those in the categories of fertilisers, forestry and plastics.
He said the new policy would create more certainty for businesses by eliminating overlapping rules.
The easing of import requirements and restrictions will also help industry players asking for an easier way to import raw materials, Deputy Industry Minister Faisol Reza said.
The US goods trade deficit with Indonesia was US$17.9 billion (S$22.8 billion) in 2024, according to the US Trade Representative.
Speaking separately to reporters, Mr Airlangga said Indonesia has offered the United States the opportunity to jointly invest in a critical minerals project as part of tariff negotiations with Washington.
Sovereign fund Danantara Indonesia will be involved in the project, he added.
'What we offer is investment in the EV (electric vehicle) ecosystem, related to nickel and other (materials),' Mr Airlangga said, declining to specify due a non-disclosure agreement. REUTERS
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