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Indonesia abolishes import quotas on PP block copolymer, nine other commodities in sweeping deregulation driveUnder the old framework, importers were required to obtain fixed-quantity approvals from the government, often resulting in disruptions in procurement cycles |
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In a decisive policy overhaul, the Indonesian government has scrapped import quotas on PP block copolymer and nine other commodity groups, signalling a clear shift towards trade liberalisation and regulatory streamlining. The move is aimed at enhancing economic competitiveness and easing bottlenecks that have long hindered industrial procurement.
Announced at a Monday morning press conference, the deregulation package was unveiled by Coordinating Minister for Economic Affairs Airlangga Hartarto, who positioned the measure as a strategic response to ongoing global trade volatility.
“This policy package is designed to create a more conducive business environment, foster competitiveness, and drive job creation,” Hartarto said. “By easing regulatory bottlenecks, particularly in import licensing, we aim to attract new investments and sustain existing ones—especially in labour-intensive sectors.”
At the centre of the shift is a revision of the Ministry of Trade regulations—Permendag No. 36/2023 and No. 8/2024—which had previously imposed annual import quotas on various products. Under the old framework, importers were required to obtain fixed-quantity approvals from the government, often resulting in disruptions in procurement cycles and uncertainty in supply chains, particularly near the expiry of permits..
PP block copolymer is a key feedstock for manufacturers of packaging, automotive components, and household goods. The timing of the deregulation is especially notable, as the product is currently the subject of anti-dumping investigations targeting imports from South Korea, Vietnam, the UAE, Malaysia, and Singapore. While provisional duties have been proposed, final rulings from the Ministry of Finance are still pending.
Industry participants welcomed the deregulation, describing it as a long-awaited step toward improving supply chain fluidity. However, some cautioned that the impact of this policy could be tempered if anti-dumping duties are imposed on PP block copolymer imports, potentially offsetting the benefits of the lifted quota.
The scope of the deregulation extends beyond petrochemicals, covering a total of 10 commodity groups and hundreds of HS codes that previously required import permits. The revised policy removes quota-based approvals for products ranging from forestry goods and fertilisers to footwear and bicycles.
List of Commodities Benefited from the Deregulation:
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