Indonesia Eases Import, Franchise Rules Boosting Market Access

Indonesia has implemented significant deregulation measures to ease import restrictions and streamline business operations, particularly affecting 10 key commodity groups including forestry products, fertilizers, plastics, chemicals, pearls, and food trays. These changes, announced by Trade Minister Budi Santoso and Coordinating Minister Airlangga Hartarto, aim to boost national competitiveness, reduce bureaucratic delays, and support domestic industries, while maintaining controls on strategic and sensitive goods like textiles. The reforms remove certain import approvals, replacing them with simplified declarations, and address concerns raised in US trade negotiations, with Indonesia offering the US joint investment opportunities in critical minerals projects related to electric vehicle materials. President Prabowo Subianto has directed ministries to ensure licensing processes are expedited to promote ease of doing business. These deregulations are part of a broader economic reform package designed to reduce costs and stimulate growth, while protecting local manufacturers through targeted restrictions. The policy changes reflect Indonesia's response to global trade dynamics and its strategic effort to enhance economic resilience and international partnerships.