• Indonesia is set to relax import restrictions on various goods and raw materials.
• The new regulations aim to ease business operations in anticipation of US tariff negotiations.
• Specific products such as fertilizers, plastics, and forestry materials will see eased regulations.
• The changes will help eliminate bureaucratic hurdles historically faced by traders.
• These regulatory changes come ahead of the July 9 deadline for negotiations with the US.

Indonesia has announced plans to ease import restrictions and rules on various goods and raw materials, aimed at simplifying business operations in the country ahead of the July 9 deadline for tariff negotiations with the United States. Coordinating Minister for Economic Affairs Airlangga Hartarto indicated that the easing involves removing import licensing for certain products and excluding specific industrial raw materials, such as plastic and chemical products, from import restrictions. This strategy comes in response to long-standing complaints from traders about excessive bureaucracy, highlighted in a recent report by the US Trade Representative regarding foreign trade barriers, according to Channel News Asia, The Jakarta Post, and Bangkok Post.

The government's new framework, which replaces previous Trade Minister regulations, offers a more flexible approach and aims to eliminate overlapping rules that have historically burdened industry groups. Minister Hartarto noted that the regulatory changes would take effect within two months and would encompass ten different commodities, including fertilizers, forestry products, and plastics, among others. “Deregulation will be conducted in stages,” he mentioned, underlining that feedback from the US's tariff negotiations may influence the timing of future measures, according to The Jakarta Post, Channel News Asia, and Bangkok Post.

Furthermore, Deputy Industry Minister Faisol Reza emphasized that these changes are crucial for industry players seeking easier access to essential raw materials, enhancing certainty for businesses engaged in import activities. The US goods trade deficit with Indonesia was reported at $17.9 billion in 2024, a significant factor influencing Jakarta's decision to modify its import regulations. This proactive approach could potentially pave the way for improved trade relations as negotiations with Washington approach, according to Channel News Asia, The Jakarta Post, and Bangkok Post.