Overview

• The measures will eliminate import licensing requirements for select goods and remove various industrial raw materials, including plastics and chemicals, from restriction lists across ten commodity groups.
• Reforms targeting fertilizers, forestry products, plastics and chemicals are designed to remove overlapping rules that have long frustrated traders.
• Implementation over the next two months aims to reduce a $17.9 billion U.S. trade deficit for 2024 and avert a 32% tariff set to take effect after July 9.
• Coordinating Minister Airlangga Hartarto and Trade Minister Budi Santoso announced the policy package at a June 30 press briefing in Jakarta.
• Jakarta has also offered the U.S. a joint critical minerals investment in the electric vehicle supply chain, with sovereign fund Danantara Indonesia slated to lead the project.