Prabowo may revoke Trade Ministerial Regulation No. 8 of 2024

Prabowo signals openness to cancel unpopular import regulation following input from labor unions.

President Prabowo Subianto delivers a briefing during the Joint Economic Discussion with the President of the Republic of Indonesia at Menara Mandiri, Senayan, Jakarta, on April 8, 2025. Photo by Aditya Pradana Putra/Antara

By Anna Fadiah and Hayu Andini

President Prabowo Subianto may revoke Trade Ministerial Regulation No. 8 of 2024 if it is found to be unprofitable and harmful to the national economy. This decision is currently under review and is expected to be addressed more seriously once the president concludes his ongoing diplomatic tour across five countries this week. The regulation, which has stirred concerns among workers and industry groups, particularly regarding imports in the textile and apparel sectors, is now at the center of national economic discussion.

The possible revocation of the policy was brought into public focus during the Economic Gathering with the President of the Republic of Indonesia: Strengthening National Economic Resilience held on Tuesday, April 8. Speaking before an audience of economists, industry leaders, and union representatives, Prabowo made it clear that his administration would not hesitate to cancel regulations that do not serve Indonesia’s best interests.

“I ask what the problems are in Trade Ministerial Regulation No. 8 of 2024. Immediately report to me regarding this matter. If it is not profitable, we will revoke it immediately,” said the president. His statement reflects a leadership style marked by responsiveness and direct engagement with grassroots economic concerns—something Prabowo has emphasized since taking office.

The regulation in question governs Indonesia’s import policy and has been criticized for its perceived lack of protection for local industries, particularly in the textile and textile products (TPT) sector. The Confederation of Indonesian Trade Unions (KSPI) has been vocal in urging the government to reconsider the regulation. According to union leaders, the importation of ready-made garments under the current rules has put undue pressure on domestic manufacturers and has the potential to trigger widespread layoffs.

Following these concerns, President Prabowo Subianto may revoke Trade Ministerial Regulation No. 8 of 2024 if further evaluation supports the unions’ claims. However, the president also emphasized that decisions would be based on thorough analysis. “We want to study the policy carefully before taking action. We will not act on assumptions but on facts,” Prabowo stated during the forum.

Meanwhile, Minister of Trade Budi Santoso echoed the president’s cautious approach. He confirmed that while the Ministry of Trade has proposed revisions, it will wait for direct instructions from the president before making any drastic changes. “We will first explain the full scope of the policy to the president, including its intended economic impacts, and then follow his direction,” Budi said.

Santoso also noted that revisions to the regulation are already underway, particularly concerning the import of ready-made clothing. “We will complete the revision related to imports of finished clothing products first, as this area has been most controversial,” he explained at a press briefing in Jakarta.

Industry Minister Agus Gumiwang Kartasasmita has also weighed in on the matter, signaling his support for the revision of the regulation. He emphasized the need for import policies that protect domestic industries without isolating Indonesia from global trade. According to Agus, adjustments to Permendag 8 must take into account not only trade balances but also employment and industrial competitiveness.

At its core, the issue surrounding Trade Ministerial Regulation No. 8 of 2024 lies in balancing free trade with economic sovereignty. While Indonesia is committed to participating in international trade, there is growing awareness that unregulated imports can jeopardize local businesses, particularly small- and medium-sized enterprises that cannot compete with the scale and pricing of imported goods.

This is why President Prabowo Subianto may revoke Trade Ministerial Regulation No. 8 of 2024, especially if it’s proven that the policy weakens the manufacturing base or leads to job losses. The president’s willingness to take decisive action based on stakeholder input sets a precedent for adaptive governance in his administration.

Labor unions are cautiously optimistic. Said Iqbal, President of the Confederation of Indonesian Trade Unions, stated that Prabowo’s willingness to consider policy revocation reflects a leader who listens. “This is what we’ve asked for—a government that listens to its people and is not afraid to admit when a policy does not work,” he said.

For many observers, this unfolding story marks an important test of Prabowo’s economic philosophy. While his background in defense and military strategy has earned him a reputation for discipline and command, this issue reveals a different side—one that values consultation, economic pragmatism, and national resilience.

The business community has been more reserved, preferring to wait until the final decision is made. Some importers have expressed concern that abrupt regulatory changes could disrupt supply chains, while domestic producers see this moment as an opportunity to restore competitiveness in local industries.

Economists, too, have chimed in. Several have noted that a blanket revocation may not be the ideal solution. Instead, they suggest a more targeted revision, focusing on high-risk sectors while keeping the spirit of trade openness intact. “Revoking an entire regulation should be a last resort. What we need is smarter regulation—not more or fewer laws, but better ones,” said Dr. Lina Mahendra, an economic policy analyst at Universitas Indonesia.

As the week progresses and President Prabowo returns from his international visits, all eyes will be on the State Palace. The decision regarding the fate of Trade Ministerial Regulation No. 8 of 2024 will send a strong message—not only to domestic stakeholders but also to international partners—about how the Prabowo administration will navigate the complex world of global economics and local interests.

One thing is clear: President Prabowo Subianto may revoke Trade Ministerial Regulation No. 8 of 2024, but only after a thorough and inclusive review. In doing so, he may set the tone for a presidency that is not just reactive, but also deeply attuned to the socioeconomic realities of everyday Indonesians.

In a time when public trust in institutions is critical, Prabowo’s measured approach to this policy controversy could prove to be a defining moment in his leadership—one where political decisiveness meets economic compassion.