Indonesian National Importers’ Association (GINSI) calls for a comprehensive analysis before the government eliminates import quotas in a bid to maintain economic balance while safeguarding the sustainability of national industries.
As the reports have said, the Indonesian government is moving toward a significant shift in trade policy, aiming to open the import market broadly across various commodities.
President Prabowo Subianto has even instructed the removal of import quotas and the elimination of technical recommendations (pertek), which have long been considered obstacles by importers.
In response, GINSI has urged the government to approach this policy with caution. They emphasized the need for a comprehensive and data-driven analysis, warning that the uncontrolled influx of imported goods could undermine domestic industries and weaken local products’ competitiveness.
Erwin Taufan, Deputy Chairman of the GINSI Executive Board stated that without careful studies and well-prepared supporting strategies, this policy could endanger Indonesia’s industrial sector—including micro, small, and medium enterprises (MSMEs). The nation, he warned, could become overly dependent on imported goods, especially for basic consumption.
“We are not opposed to the government’s plan,” Taufan said in an official statement on Thursday (April 10, 2025). “But has it gone through a proper and comprehensive review? As importers, GINSI remains committed to maintaining economic balance while safeguarding the sustainability of our national industry. If all import restrictions are lifted and pertek is no longer required, it could result in an import surge that overwhelms local products.”
Taufan reiterated that GINSI has consistently supported government initiatives that seek to improve the national economy. However, he stressed that policy changes must also consider the long-term health of domestic industries.
“We support positive change, but it should not come at the expense of our local industry’s sustainability. At the very least, industrial imports—especially raw materials required for production—should align with actual production needs. Imports for purely commercial purposes, however, still require regulation. We can’t just open the market without rules,” he said.
Taufan also emphasized that imports by producers or manufacturers that are essential for production, export-oriented activities, or fulfilling national consumption should not be restricted by quotas. He warned that setting quotas too low—well below actual demand—could disrupt industrial operations.
“Industries that have made significant investments in Indonesia, such as Krakatau Steel, rely on imported raw materials. Limiting access to these materials could impair their ability to meet domestic demand,” he added.
In addition, Taufan highlighted the need to maximize the use of bonded logistics center (PLB) facilities to boost national investment and industrial performance.
President Prabowo previously expressed his stance during an Economic Discussion at Menara Mandiri, Central Jakarta, on Tuesday (April 8, 2025). He urged key ministers—including the Ministers of Agriculture and Trade—to eliminate regulations on import quotas.
“There should be no quotas—especially not for specific companies,” Prabowo stated. “Let’s stop those practices. We’ve been Indonesians for a long time. Anyone who wants to import meat, go ahead! Whatever you want to import—go for it! Just open the import tap. Our people are smart.”