Bapanas Explains Prabowo's Move to Scrap Import Quotas

April 12, 2025 | 09:26 pm

TEMPO.CO, Jakarta - The Head of the National Food Agency (Bapanas), Arief Prasetyo Adi, has revealed the reasons behind President Prabowo Subianto's directive to eliminate import quotas on essential commodities. According to him, this instruction is intended to ensure fair and stable prices for the public.

"So that the prices are fair for the public. I said that when it comes to this matter, the President is very concerned about ensuring fair prices. Prices are fair when there is fairness," Arief told Tempo on Saturday, April 12, 2025.

Arief stated that the President often compares the prices of basic commodities in Indonesia with those in neighboring countries, such as Malaysia. He cited an example where the price of a particular commodity in Malaysia might be only US$4 to 5, while in Indonesia, the same commodity could be more expensive.

He added that the removal of import quotas does not signify that the Indonesian government will completely open its borders to the unrestricted import of all commodities. He explained that this policy change will only affect specific commodities for which Indonesia has not yet achieved self-sufficiency, such as meat and garlic.

"For example, with meat, the opportunity to import should not be limited to just one or two importers. The same principle applies to garlic," said Arief.

He also refuted the suggestion that the plan to remove import quotas was solely a response to the import tariff policies of United States President Donald Trump. He emphasized that the primary objective of eliminating import quotas is not solely to balance trade with the U.S.

"No, no. Trade balances are a separate issue. Actually, the issue that concerns us most is to ensure fair prices," he asserted.

Arief explained that the authority to remove import quotas primarily rests with the Ministry of Trade and the Ministry of Agriculture. This is why President Prabowo specifically mentioned these two government institutions when conveying his instruction to eliminate the quota system.

The plan to abolish import quotas was initially announced by President Prabowo during an Economic Forum held at Menara Mandiri in Jakarta on Tuesday, April 8, 2025. He instructed the Minister of Agriculture and the Minister of Trade to remove import quotas for basic commodities crucial to the livelihoods of many Indonesians, such as meat.

Prabowo also suggested against those practices. However, he stopped short of detailing what practices he was referring to. 

Tempo has previously reported on instances where import quotas for garlic were allegedly granted to specific groups with suspected political influence. Simultaneously, established importers and businesses with decades of experience in the garlic trade reportedly did not receive quotas in the preceding 2-3 years.

In the case of buffalo meat, Tempo has also reported allegations of distribution monopolies leading to inflated prices. Similar racketeering practices have been alleged in the fish commodity sector, with reports suggesting that importers were charged unofficial fees for the issuance of import approval letters (SPI).

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