Jakarta: Trade Minister Budi Santoso said on Friday that the government is open to reviewing Regulation of the Minister of Trade (Permendag) Number 16 of 2025 if it is found to harm local industries, reports Tempo.
“The regulation can be revised if needed, but first it must be evaluated,” Budi told reporters at the Jakarta International Convention Center on August 29. The regulation, which sets new import policies, will take effect on Saturday, August 30.
Budi explained that the government will not rush to reconsider the rule before it is enforced. “We will monitor its implementation first. Evaluation should be based on what is already in effect,” he said.
His remarks came after the Smallholder Sugarcane Farmers Association (APTRI) raised concerns that the policy could undermine the domestic sugar sector.
APTRI chairperson Soemitro Samadikoen argued that Permendag 16/2025 poses a risk to national sugar production because it allows ethanol imports without approval or conditions from the Ministry of Industry.
He pointed to Article 93(c) of the regulation, which lifts approval requirements for importing fuel, fuel mixtures, and other energy products through importer identification numbers (API-P and API-U). These approvals are declared invalid electronically through the INATrade system.
Soemitro stressed that ethanol, a byproduct of sugarcane, plays an important role in several industries such as pharmaceuticals, cosmetics and alcoholic beverages.
“If imports are freely opened, domestic industries will prefer cheaper foreign products,” he warned. He added that some local producers had already reported declining sales even before the regulation was enforced. “Other countries see this as an opportunity to enter our market,” Soemitro said.
