Indonesia’s industrial salt shortage, which led to factory closures and layoffs, is nearing resolution as the government finalizes revisions to the import ban. The updated policy will ease supply constraints and prevent further economic fallout.
Import Ban Revision to Restore Supply
Following industry pressure, including from the Indonesian Food and Beverage Producers Association (GAPMMI), the government is revising restrictions on salt imports. The new regulation will allow importers to use the remaining 47,000 tons of 2024 stock and permit additional imports through 2025 if domestic supply falls short.
Shortages Still Disrupting Industry
Despite reassurances, manufacturers warn that salt stocks may only last until March 2025. The ongoing shortage threatens food production, including seasoning, noodles, and snacks, putting jobs and GDP at risk. GAPMMI has urged the government to act swiftly to prevent further disruptions.
Government’s Next Steps
The Ministry of Industry assures that current stocks are sufficient for existing contracts, but uncertainty looms beyond April. Officials urge the swift implementation of the revised regulation to stabilize the industry.
Will the Crisis End?
The government expects stability by June, aligning with the domestic salt harvest. However, as local salt often fails to meet industry purity standards, reliance on imports will likely continue. Timely policy enforcement remains crucial to preventing further disruptions.
