Government Evaluates Ethanol Import Policy

Regulation of the Minister of Trade  (“ Permendag ”) No. 16 of 2025 on Import Policies and Provisions (“ Permendag 16/2025 ”) is considered a response to the influx of imported ethanol products. Ethanol and other fuels are among several priority groups whose import policies and provisions have been relaxed under said regulation.

The Acting Director General of Foreign Trade at the Ministry of Trade, Isy Karim, expressed openness to evaluating the Permendag.

“Feedback and proposals must go through the proper stages before being finalized in the Permendag,” said Isy. Kemendag is currently gathering input from affected business actors.

According to Priyo Tri Atmojo, a Mid-Level Trade Analyst at the Ministry of Trade, the evaluation will focus particularly on the potential reinstatement of the Prohibition and/or Restriction (Larangan dan/atau Pembatasan–“ lartas ”) on ethanol imports. If the lartas is reinstated, the policy will be regulated through a specific permendag.

“Kemendag is focusing solely on the evaluation of lartas on ethanol products from abroad,” he said to Hukumonline.