What To Know
- Indonesia’s sweeping move to ban the import of 12 product categories from January 1, 2026, is sending ripples across Southeast Asian trade lanes, with Thailand watching closely as sugar and rice emerge as the most exposed exports.
- Only state-owned enterprises such as Bulog, Sarinah, and RNI will be permitted to import rice for consumption, and only in exceptional circumstances tied to market stability or national food security.
Medical News: Indonesia’s sweeping move to ban the import of 12 product categories from January 1, 2026, is sending ripples across Southeast Asian trade lanes, with Thailand watching closely as sugar and rice emerge as the most exposed exports.
Image Credit: Bangkok Business News
The regulation, formally issued by Indonesia’s Ministry of Trade under Ministerial Regulation No. 47/2025, was announced late December and took effect immediately at the start of the new year. Authorities in Jakarta say the policy is designed to protect domestic farmers, stabilize local industries, and strengthen long-term food security.
Thai officials tracking the changes say the biggest concern lies with sugar. This Bangkok Business News report notes that sugar classified under HS Code 1701, including raw and certain refined forms, has been placed on the prohibited import list. Thailand is one of Indonesia’s major sugar suppliers, exporting about US$725 million worth of sugar to the country between January and November 2025 alone.
Sugar Still Faces Narrow Import Window
Despite the ban, Indonesian demand has not disappeared. Domestic sugar production remains insufficient, and the government may still allow limited imports based on quotas approved in previous years. Imports can continue under Ministerial Regulation No. 31/2025, which allows sugar to enter Indonesia for processing purposes if importers secure prior approval. Crucially, the new regulation does not revoke or amend this earlier framework.
Rice Controls Tighten as Stocks Remain High
Rice imports face even tighter scrutiny. Restrictions now apply to multiple rice types under HS Code 1006, including jasmine, sticky, and basmati rice. Approval will depend not on variety, but on intended use and importer status. With Indonesia holding an estimated 3.5 million tons of rice in reserve, authorities are expected to continue limiting imports for direct consumption.
Only state-owned enterprises such as Bulog, Sarinah, and RNI will be permitted to import rice for consumption, and only in exceptional circumstances tied to market stability or national food security. However, Regulation No. 31/2025 still allows rice imports for industrial use by approved Importer Producers, provided the rice is used strictly as production input.
Minimal Impact on Industrial Goods
The regulation also bans imports of air conditioning and refrigeration products containing prohibited refrigerants like CFCs and HCFCs. Thai industry groups say this will have little impact, as such substances are already banned in Thailand. Other restricted items include used clothing, hazardous materials, mercury-based medical devices, and certain agricultural tools, none of which are significant Thai exports.
Trade Outlook Remains Cautiously Stable
While the new rules introduce fresh hurdles, Thai trade officials stress that the overall impact is limited. Sugar remains the primary pressure point, but existing regulatory channels offer room for continued trade under strict conditions. Businesses are now urged to monitor approvals closely and adapt strategies accordingly.
For the latest on Thailand’s imports and exports, keep on logging to Bangkok Business News.