KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin: Domestic Industry Protection Must Be Strengthened

Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) believes that protection for domestic industries needs to be strengthened, but should be implemented in a measured, selective, and data-driven manner. Protection should focus on products that can already be produced and supplied by domestic industries, both in terms of quality and quantity, so that such policies do not disrupt the needs of industries that still rely on imports.

This view was expressed by Kadin Indonesia Deputy Chairman for Industry, Saleh Husin, on Sunday (October 4, 2026).

Saleh Husin said protection is necessary because imported products can put pressure on national industries when they enter segments where products can already be adequately supplied by domestic manufacturers.

“Therefore, import regulations need to be continuously evaluated and, where necessary, selectively strengthened, particularly to prevent unfair competition without hampering imports of raw materials, capital goods, and products that cannot yet be adequately supplied domestically,” said the former Minister of Industry.

In this context, Saleh said the most urgent priority is to establish an integrated protection policy based on the needs of the industry. Instruments may include import controls, increased Domestic Component Level (TKDN) requirements, safeguards, and incentives, but their implementation must be tailored to the characteristics of each product.

“The main principle is to protect products that are already competitive and can be supplied by domestic industries, rather than simply restricting imports,” he stressed.

Furthermore, Saleh Husin emphasized that Kadin Indonesia believes restrictions may be considered for products that can already be adequately produced domestically in terms of quality, capacity, and continuity of supply.

“In this way, domestic demand can serve as a market for national industries while simultaneously encouraging investment, capacity expansion, and greater industrial competitiveness,” Saleh Husin concluded.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry