An Overview of Indonesian Trade Policy

This presentation outlines Indonesia’s evolving trade policy, from early protectionism under Soekarno to liberalisation under Soeharto, followed by reforms after the 1997 Asian financial crisis and commitments to AFTA, APEC, and the WTO. Despite these efforts, Indonesia remains hindered by weak institutions, corruption, and heavy reliance on commodity exports. The economy faces infrastructure and regulatory challenges, with rising Non-Tariff Measures such as licensing, SPS, and TBT requirements. Trade policymaking is fragmented across ministries, while future goals include deregulation, digital transformation, service sector growth, and a shift toward value-added exports.

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