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Indonesian Government Abolishes Import Quota System for Agricultural Commodities

The Indonesian government recently announced a significant policy change by abolishing the import quota system for several agricultural commodities. This move is part of a broader effort to create a fairer, more efficient, and transparent national food supply chain, while still protecting local farmers and domestic businesses.

Commitment to Protecting Farmers and Domestic Industry

Deputy Minister of Agriculture, Sudaryono, emphasized that removing import quotas does not mean Indonesia will open the floodgates to unlimited imports. The government remains strongly committed to safeguarding domestic production, especially in the food, technology, and apparel sectors. Achieving national food and energy self-sufficiency remains a top priority. Therefore, the domestic agricultural industry will continue to be encouraged to strengthen its competitiveness and food security.

Eliminating Monopoly and Encouraging Healthy Competition

One of the main reasons behind abolishing the import quota system is to eliminate monopolistic practices that have occurred in the past. The previous quota system often granted import rights to only a handful of groups or individuals, leading to unfair distribution and management of imports. Under the new system, industries that require certain commodities, such as frozen meat, can import directly according to their needs without going through intermediaries or monopolistic quota holders.

Sudaryono stated, “The volume set by the government based on commodity balances can be imported, and that volume can be imported by anyone, no longer monopolized by certain individuals. This is to ensure fairness and put an end to monopolistic practices through quota allocations.”

Positive Impact for Society

This policy is expected to have a positive impact on the wider public. With a more open import system, the prices of food commodities such as meat are likely to become more affordable. If the import purchase price is lower, the selling price in the domestic market will also decrease, making these commodities more accessible to the general population.

Conclusion

The abolition of the import quota system for agricultural commodities is a strategic move by the government to create a fairer, more efficient, and sustainable national food system. By continuing to protect the interests of local farmers and domestic industries, this policy is expected to strengthen food security while delivering tangible benefits to the people of Indonesia.

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