Import Substitution Problem
As reported in the media, the Industry Ministry is drafting an import substitution policy and road map.
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Container loading and unloading activity at Operation Terminal 3, Tanjung Priok Port, Jakarta, on Thursday (20/2/2020). The Central Statistics Agency noted that the value of non-oil and gas exports and imports to and from China had decreased in January 2020.
As reported in the media, the Industry Ministry is drafting an import substitution policy and road map.
In a press release dated 29 July 2020, the ministry announced a plan to reduce imports and replace up to 35 percent with domestic products in a number of industrial sectors by 2022. It planned to do this in part by increasing import tariffs and non-tariff barriers for a number of strategic commodities. According to the findings of some economic studies, the import substitution plan is not the right concept or policy to strengthen Indonesian industry and the economy.