Jakarta. As the Indonesian government finalizes a revised trade regulation aimed at streamlining the import process, economic analysts and industry players are calling for firm safeguards to protect the domestic market from a potential flood of imported goods.

The amendment to Ministry of Trade Regulation No. 8/2024 on Import Policies and Management is expected to be issued in the coming days. It seeks to ease import procedures, reduce container backlogs at ports, and provide much-needed regulatory relief for importers.

However, concerns are mounting over the risk of market oversaturation and the impact on local manufacturers.

“The government should ease the import of raw materials, but make it harder to import finished goods so that domestic products can dominate their own market,” said Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (INDEF), as quoted by Investor Daily on Monday.

Esther explained that while regulatory relaxation is necessary to improve efficiency, it must be designed carefully to avoid undermining national industry.

Erwin Taufan, Deputy Chairman of the Indonesian Importers Association (GINSI), echoed the sentiment, describing the revision as a timely move amid declining global trade activity following the recent announcement of reciprocal tariffs by the United States.

According to Taufan, GINSI has long advocated for an updated import policy that aligns with current economic conditions and helps secure the supply of industrial raw materials within Indonesia.

During a public hearing on May 9, the Ministry of Trade proposed that certain product categories remain excluded from the deregulation. These include:

• Strategic commodities under HS Code 454, such as rice, sugar, salt, fishery products, corn, garlic, crude oil, natural gas, livestock, and animal products.
• Goods affecting national security, public safety, health, the environment, or posing moral hazard (HS Code 326), including uncut diamonds, explosives, nitrocellulose, ozone-depleting substances, and alcoholic beverages.
• Strategic goods and labor-intensive industry products (HS Code 1,715), such as textiles and garments, tires, and iron or steel products.

“The core objective of this revision is to provide business certainty for importers while helping the government clamp down on the circulation of illegal imported goods,” Taufan said.

Separately, Trade Minister Budi Santoso confirmed that the regulation is in its final stages and should be issued by next week.

He stressed that the deregulation package will not lead to an unchecked influx of imports, particularly in sectors critical to food security, strategic industries, and labor-intensive manufacturing.

“There are clear criteria for which restrictions can be relaxed. If a domestic sector is ready to compete, we’ll gradually open imports in that area,” said the minister.