Indonesia eases import rules ahead of US tariff deadline
[JAKARTA] Indonesia has eased import restrictions on a range of commodities, including raw materials, officials said, presenting the move as a strategic response to ongoing trade negotiations with the US.
Trade Minister Budi Santoso said on Monday (Jun 30) that the government plans to ease import restrictions on 10 commodities, including forestry products, plastics, fuels and fertilisers, as part of a broader push to cut through the red tape and give businesses a clearer path forward by scrapping overlapping regulations.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the recent move to cut import regulations is part of a broader deregulation effort in response to ongoing global trade agreements, including negotiations with the US.
Hartarto added that Indonesia is currently undergoing the procedural steps required to join the Organisation for Economic Co-operation and Development, a move that underscores the country's commitment to reform as improving the ease of doing business remains one of the core criteria for membership.
'In line with President Prabowo Subianto's directive to navigate global trade uncertainty and growing competition, the government is committed to streamlining regulations for businesses and fostering a more supportive ecosystem,' Hartarto said in a press conference. 'Labour-intensive sectors will remain a key focus in efforts to attract investment.'
The easing of import requirements and restrictions will be a breath of fresh air for industry players who have long been calling for a smoother path to bring in raw materials, Indonesia's Deputy Industry Minister Faisol Reza said at a press conference.
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Indonesia was previously hit with a 32 per cent tariff hike under US President Donald Trump. In the months since, both countries have worked to rebuild momentum through ongoing negotiations, including a high-level visit by Indonesian officials to Washington in April.
The United States Trade Representative previously flagged Indonesia's complex import regulations as a non-tariff barrier, citing how the rules hinder the entry of capital goods into the country. In 2024, the US posted a trade deficit of US$17.9 billion with Indonesia, underscoring the significant imbalance in bilateral trade between the two countries.
Ahead of the negotiation deadline on Jul 9, Hartarto said Indonesia has agreed to the requests made by the US including those related to tariffs and other trade barriers.
He said last week that he held a virtual meeting with US Secretary of the Treasury Scott Bessent, who confirmed that the US is not seeking any new proposals. Hartarto indicated that the negotiation package submitted by Indonesia is sufficient to represent the US government's interests.
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