Indonesia to facilitate import limitations before the US invoice deadline

Indonesia will facilitate the limitations and rules of imports for many goods and raw materials in an effort to facilitate business in the country, officials said Monday, before the July 9 duties on duties on duties set by the United States.

While Indonesia is the largest economy in Southeast Asia, traders have historically protested excessive bureaucracy. The issue was also highlighted in a recent report by the US Commercial Representative about foreign trade obstacles.

Relaxation involves removing the entry licensing requirements for certain goods and excluding certain industrial raw materials – including plastic and chemicals – from the list of import restrictions, presentation by Indonesian officials at a press conference.

Speaking to the event, Coordinating Minister of Finance Airlangga Hartarto said at the event that policy would affect 10 groups of goods and will be in place in two months.

Officials did not specifically stated that the action was linked to tariff negotiations with Washington.

“The President (Prabowo Subianto) ordered all ministerial bodies to ensure that the business licensing process is not interfered with by a long bureaucratic process,” said Satya Bhakti Parikesit, an employee at the Indonesian State Secretariat.

Commerce Minister Budi Santoso said restrictions would be reduced to products, including those categories of fertilizers, forestry and plastic. He said that the new policy would create more confidence in businesses by eliminating the overlapping rules.

Relaxing the requirements and limitations of imports will also help industry players demand an easier way to import raw materials, Deputy Minister of Industry Faisol Reza said.

The US trade deficit with Indonesia was $ 17.9 billion in 2024, according to a US spokesman.

Speaking separately to reporters, Airlangga said Indonesia has offered the United States the opportunity to invest together in a critical mineral plan as part of the duty negotiations with Washington.

The dominant Danantara Indonesia fund will participate in the project, he added.

“What we offer is the investment in the Electric Vehicle ecosystem, which is related to nickel and other materials,” Airlangga said, refused to determine due to a non -disclosure agreement.