Logistics industry leaders support stronger import oversight but warn that efficient supply chains, streamlined licensing, and uninterrupted access to industrial inputs remain critical for Indonesia’s competitiveness
Indonesia’s latest import regulation is a positive step toward improving legal certainty and strengthening compliance, but policymakers must ensure tighter oversight does not disrupt supply chains that underpin industrial competitiveness, logistics industry representatives said.
Trade Minister’s Regulation No. 18 of 2026, which took effect on June 4, revises Indonesia’s import policies by strengthening data validation requirements and clarifying procedures related to import approvals and surveyor reports.
The regulation is intended to improve governance and licensing effectiveness, but logistics and supply chain operators say its success will depend on whether it can balance oversight with the smooth flow of goods needed by domestic industries.
Yukki Nugrahawan Hanafi, chairman of the advisory board of the ASEAN Federation of Forwarders’ Associations (AFFA) and a board adviser to the Chartered Institute of Logistics and Transport (CILT), said the business community broadly supports the government’s efforts to improve import governance.
“In principle, the business community supports government initiatives to strengthen import governance and improve compliance,” Yukki said. “However, implementation must maintain a balance between supervision and the uninterrupted supply of raw materials and capital goods required by national industries.”
He said import policies should ultimately strengthen industrial competitiveness, support exports and create efficient supply chains rather than focus solely on restricting the flow of imported goods.
“The ultimate objective is to enhance the competitiveness of national industries, increase exports and establish efficient and sustainable supply chains,” Yukki said. “Regulations should protect the domestic market without undermining the competitiveness of production and export-oriented sectors.”
Indonesia’s import structure remains heavily concentrated on industrial production needs. According to data from Statistics Indonesia (BPS), the country’s imports reached $241.86 billion in 2025.
Raw and auxiliary materials accounted for around 70% of total imports, equivalent to $169.30 billion, while capital goods contributed about 20%, or $50.13 billion. Together, the two categories represented nearly 90% of Indonesia’s imports, highlighting the sector’s reliance on overseas production inputs.
Against a backdrop of global economic uncertainty, Yukki warned that additional administrative requirements could create bottlenecks and increase logistics costs if not implemented efficiently.
“A smooth supply chain is a critical factor in Indonesia’s competitiveness,” he said. “Additional administrative requirements should not create obstacles that ultimately raise logistics and production costs.”
To minimize disruptions, Yukki called for stronger coordination and system integration among government agencies, including the Ministry of Trade, Customs and Excise, the Indonesia National Single Window (INSW), the Online Single Submission (OSS) platform and relevant technical ministries.
“Businesses need procedural certainty and harmonized systems to avoid duplication of processes and differing interpretations in the field,” he said.
He added that import controls should focus on protecting domestic industries while ensuring that raw materials, supporting materials and capital goods can continue entering the country efficiently.
Those imports, he said, are essential for maintaining factory operations, preserving employment and supporting export performance.
Yukki also urged businesses to make full use of the regulation’s socialization and transition periods to adapt their procedures and avoid disruptions to trade activities.
“The success of import governance should not be measured by how much we restrict imports,” he said. “It should be measured by how effectively we balance oversight with the smooth flow of goods, logistics efficiency and industrial strengthening. That is where Indonesia’s future competitiveness lies.”