Indonesia reconsiders export regulations after business group raise concerns

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Indonesia is reviewing regulations aimed at limiting imports of over 3,000 products, according to a senior trade ministry official. The move comes after industry concerns that the rules could disrupt the domestic supply chain and impact exports.

The regulations, implemented late last year, tightened monitoring on a wide range of imported goods, from food ingredients to hand tools to chemicals, in response to complaints from business associations about the influx of imported goods affecting local markets.

Despite efforts to address concerns, including easing restrictions on certain products like aircraft spare parts and raw materials for the plastic industry, business groups are calling for further relaxation of the rules. The Indonesian Association of Food and Beverage Entrepreneurs (GAPMMI) has voiced concerns about restrictions on food ingredient imports, such as fortification mix, which is essential for meeting national standards and is used in processed foods to boost nutritional content.

However, ongoing evaluation and coordination with relevant ministries and institutions are underway to address these concerns and strike a balance between protecting domestic industries and maintaining a smooth supply chain.

Source: Reuters

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