House Issues Warning on Risks of Lifting Import Quotas

1 week ago 6

April 10, 2025 | 11:36 am

TEMPO.CO, Jakarta - Chairperson of the Indonesian House Commission VI, Anggia Erma Rini, urged the government to be cautious in removing import quotas. She warned about the potential flood of imported products from advanced countries, including the United States. "It could threaten domestic industries if not properly anticipated," she said in a written statement on Wednesday, April 9, 2025.

Anggia also highlighted the risk factors that the government needs to be aware of, ranging from rupiah dynamics, global economic pressures, and slowing global economic growth. "There must be risk mitigation, especially against the threat of mass layoffs if domestic production is disrupted," she said.

Anggia claimed President Prabowo's instruction to remove import quotas aims to protect domestic industries and the people. According to her, this policy is not just about opening the floodgates of imports. "It is part of a larger strategy to strengthen the national industry, so that it can compete globally," she said.

The National Awakening Party (PKB) politician requested that Indonesia be more creative in seeking alternative export markets amidst global uncertainty. She mentioned that Indonesia's partner countries, such as Japan, Australia, and Pakistan, could be potential export destinations.

In line with this, the strengthening of domestic consumption is also considered one of the short-term strategies to maintain national economic stability. Anggia emphasized the importance of creating a conducive business climate so industry players can adapt quickly. "With caution, mature risk mitigation strategies, and cross-sector collaboration, this policy (removal of import quotas) has the potential to become a momentum for the resurgence of the Indonesian industry," said Anggia.

Previously, Prabowo instructed the government agencies to remove import quotas, especially for goods essential to the public. This is because import quotas are seen as hindering smooth trade.

Prabowo stated that the instruction had been conveyed to the Coordinating Minister, the Finance Minister, the Bank Indonesia Governor, and the Chairperson of the National Economic Council. According to him, removing import quotas is part of the government's efforts to facilitate business actors and streamline bureaucracy.

One of the commodities highlighted by Prabowo is meat. He also asked the Minister of Agriculture and the Minister of Trade to open up import opportunities for anyone.

Alfitria Nefi Pratiwi contributed to the writing of this article.

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