Tension in Indonesia's Industry as Stringent Imports Imposed

The Indonesian government has issued Minister of Trade Regulation No. 3/2024, which amends Minister of Trade Regulation No. 36/2023 concerning Import Policies and Regulations, set to come into effect on Mar. 10. This revised regulation excludes several commodities that were previously designated on the list of restricted or prohibited imports (Lartas), also known as goods with restricted or prohibited importation. The commodities removed from the Lartas list include monoethylene glycol (MEG), plastic raw materials (11 tariff lines), and aircraft spare parts.

"Policy changes are necessary because domestic industries have not been able to fully meet domestic needs," Arif Sulistiyo, the Trade Ministry’s Director of Imports, said. According to him, the regulation was issued after the Trade Ministry received input from the Indonesian Chamber of Commerce and Industry (Kadin Indonesia), the Indonesia Fiber & Filament Yarn Producer Association (APSyFI), the Indonesian Downstream Plastics Producers Association (APHINDO), Rotokemas Indonesia, the Indonesian Biaxially Oriented Films Association (ABOFI), and the Indonesian Importers Association (GINSI). He stated that these associations conveyed that import regulations would impact the sustainability of domestic industries using raw materials. "We follow up on these inputs through coordination with relevant ministries and institutions."