The Maze of Indonesia's Electronics Import Restrictions

Like two sides of a coin, import restrictions on electronic goods can have contrasting effects. On one side, these regulations make it more challenging for manufacturing industry players by limiting the entry of components and raw materials. On the other hand, they offer opportunities for local players to grow.

However, Fahmi Wibawa, an economist at the Institute for Research, Education and Information on Economy and Social Affairs (LP3ES), sees the positive side of Ministerial Regulation No. 6/2024 on the Procedures for Issuing Technical Consideration for Importing Electronic Products, which follows Ministerial Regulation No. 36/2023 on import policies and regulation.

He believes that if domestic manufacturing players properly utilize these rules, it could create opportunities for local electronic products to dominate the domestic market. "With this regulation, if importers of foreign-branded electronic goods fail to respond promptly by setting up factories in Indonesia, their products will likely be more expensive," he said on Apr. 28.