Heaptalk, Jakarta — Economists at the Institute for Development of Economics and Finance (Indef) warn that President Prabowo Subianto’s plan to abolish the import quota must be paired with strict regulations to avoid economic destabilization.
“This move risks accelerating national economic damage without super-tight regulatory oversight. If Prabowo’s statement translates into a fully open policy without controls, it would effectively invite a flood of foreign products into our fragile domestic market,” said Andry Satrio Nugroho, Head of the Center for Industry, Trade, and Investment at Indef, in an official statement on Tuesday (04/08).
Andry highlighted labor-intensive industries, such as textiles, footwear, and light electronics, already grappling with massive layoffs. He cautioned that unrestricted imports could further cripple these sectors, making large-scale job losses inevitable. Hence, he reminded the government to consider strict regulations accompanying this measure.
The economist also warned of repercussions for the investment climate. Andry argued that should cheap imports saturate the domestic market, investors may lose incentive to establish factories in Indonesia.
At an Economic Forum held in Jakarta’s Mandiri Tower (04/08), President Prabowo called to scrap import quota, particularly for essential commodities like beef, and liberalize import access: “Whoever has the capability and willingness to import may do so freely. No more handpicking who’s allowed or not.” He further framed the policy as a business-friendly reform to spur job creation and national economic growth.
