Jakarta, June 20, 2026 – The strengthening of Indonesia’s import governance through Minister of Trade Regulation (Permendag) No. 18 of 2026 on Import Policies and Regulations has been welcomed as a positive step toward enhancing legal certainty and improving the effectiveness of import licensing services.
However, logistics and supply chain stakeholders emphasize that the success of import policy should ultimately be measured not by the number of restrictions imposed, but by its ability to strike the right balance between effective oversight, the smooth flow of goods, logistics efficiency, and the competitiveness of Indonesia’s manufacturing sector.
Effective since June 4, 2026, Permendag No. 18/2026 constitutes the second amendment to Minister of Trade Regulation No. 16 of 2025 on Import Policies and Regulations. Among its key provisions are allowing Surveyor Reports (LS) to be issued after the expiration of an Import Approval (PI), as well as strengthening data validation between import licensing documents and the Customs Import Declaration (PIB)—two administrative issues that have frequently created bottlenecks in practice.
Yukki Nugrahawan Hanafi, Chairman of the Advisory Board of the ASEAN Federation of Forwarders Associations (AFFA) and Advisory Council Member of the Chartered Institute of Logistics and Transport (CILT), said the spirit of the regulatory refinement is broadly aligned with the needs of the business community.
“In principle, the business sector supports the government’s efforts to strengthen import governance and improve regulatory compliance. However, implementation must maintain a balance between effective supervision and ensuring the uninterrupted supply of raw materials and capital goods required by domestic industries,” Yukki said.
He stressed that the ultimate objective of import policy should extend beyond controlling incoming goods.
“The end goal is to strengthen the competitiveness of Indonesia’s manufacturing sector, boost exports, and build efficient and sustainable supply chains. Sound regulations should be capable of protecting the domestic market without undermining the competitiveness of production and export-oriented industries,” he said.
According to data from Statistics Indonesia (BPS), Indonesia’s import structure remains overwhelmingly driven by production needs. In 2025, the country’s total imports reached US$241.86 billion, of which raw materials and intermediate goods accounted for approximately 70 percent, or US$169.30 billion, while capital goods contributed around 20 percent, or US$50.13 billion. In other words, nearly 90 percent of Indonesia’s imports serve as production inputs for domestic industries.
Against this backdrop, Yukki cautioned that additional administrative requirements should not evolve into new barriers for businesses.
“Amid today’s global uncertainty, supply chain reliability has become a critical determinant of Indonesia’s competitiveness. Additional administrative requirements must not create bottlenecks that ultimately increase logistics costs and manufacturing expenses,” he said.
To sustain recent gains in logistics efficiency, Yukki also called for greater harmonization across government agencies.
“Businesses need regulatory certainty and seamless system integration among the Ministry of Trade, Customs and Excise, the Indonesia National Single Window (INSW), the Online Single Submission (OSS) system, and other relevant technical ministries to avoid duplicated processes and inconsistent interpretations in implementation,” he said.
He further urged policymakers to give particular attention to the flow of raw materials, intermediate goods, and capital equipment. In his view, import controls should primarily focus on safeguarding domestic industries without impeding the inflow of production inputs that keep factories operating, preserve employment, and support Indonesia’s export performance.
Yukki added that the readiness of businesses will be a decisive factor in ensuring the successful implementation of the regulation. He encouraged companies to make full use of the socialization and transition periods to adapt to the new requirements without disrupting trade activities.
Ultimately, he said, an effective import policy is one that places national competitiveness at its core.
“The success of import governance should not be measured by how many restrictions we impose, but by how effectively we balance regulatory oversight with the smooth flow of goods, logistics efficiency, and industrial development. That is where Indonesia’s future competitiveness will be determined,” Yukki concluded.
—
The original article can be accessed here
