Jakarta (TDI): Indonesia announced plans on Monday to ease import restrictions and streamline regulations on a wide range of goods and raw materials, a move aimed at improving the country’s business environment ahead of an approaching deadline for tariff talks with the United States.
The changes, which were unveiled at a press briefing in Jakarta, include eliminating import licensing requirements for certain goods and removing some industrial inputs such as plastic and chemical products from the restricted list. The new rules are expected to take effect within two months and will cover 10 broad commodity groups.
Although officials stopped short of explicitly linking the reforms to ongoing trade discussions with Washington, the timing aligns with a July 9 deadline for tariff negotiations set by the US.
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Indonesia, Southeast Asia’s largest economy, has long faced criticism from traders and international partners over cumbersome bureaucracy and overlapping regulations. A recent report from the Office of the United States Trade Representative highlighted these barriers as obstacles to market access.
Airlangga Hartarto, the Coordinating Minister for Economic Affairs, said the policy overhaul is part of a broader effort to reduce red tape. “The president has instructed all ministries to ensure that business licensing is no longer bogged down by a lengthy bureaucratic process,” said Satya Bhakti Parikesit, an official from the state secretariat.
Trade Minister Budi Santoso said the reform would provide greater regulatory certainty for businesses and impact key sectors including fertilizers, forestry, and plastics. “These changes will simplify the process and remove duplicate regulations that create confusion,” he noted.
Deputy Industry Minister Faisol Reza added that the policy shift would make it easier for domestic industries to access essential raw materials, supporting production and competitiveness.
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The United States reported a trade deficit of $17.9 billion with Indonesia in 2024, a figure that continues to fuel trade friction between the two countries.
Speaking separately to reporters, Minister Airlangga revealed that Indonesia had extended an offer to the United States to co-invest in a strategic minerals project as part of the ongoing tariff talks.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
