Minister of Industry Calls for Stronger Protection for Local Industries Amid Rising Consumer Goods Imports

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, is calling for enhanced protection policies for the nation's domestic industries, with a specific focus on strengthening support for raw material providers. This initiative aims to bolster the national industrial capacity to meet domestic market demands and decrease reliance on imports.

The minister's request comes in the wake of a significant 27.15% year-on-year rise in consumer goods imports during the second quarter of 2026. While this surge reflects robust consumer purchasing power, it also highlights existing limitations within the national industry's ability to supply certain raw materials and components.

"The growth of consumer spending is a positive signal for the industrial world because it shows that domestic demand remains strong," Agus stated. "However, we must also use the increase in imported consumer goods as a momentum to accelerate the strengthening of the national industrial structure."

Agus believes that reinforcing protectionist policies will encourage greater fulfillment of domestic market needs through locally produced goods and materials. This, in turn, is expected to deepen the national industrial structure, enhance competitiveness, and gradually reduce import dependency. Despite a negative contribution of 0.78% from net exports to economic growth in Q2 2026, the non-oil and gas processing industry showed positive performance, growing 5.32% and contributing significantly to the GDP.

“

The growth of consumer spending is a positive signal for the industrial world because it shows that domestic demand remains strong. However, we must also use the increase in imported consumer goods as a momentum to accelerate the strengthening of the national industrial structure.