Dilemma of Imported vs Local Products in Indonesia: Rachmat Gobel's Perspective
Indonesia has lost a major figure in the economic and political sectors, as Rachmat Gobel passed away on Friday (10/7/2026). Rachmat Gobel breathed his last at Brawijaya Tebet Hospital, South Jakarta, at 03.20 WIB. His work in building the national industry made him a benchmark of success for Indonesian entrepreneurs. Before his death, Rachmat Gobel had shared his views on the competitiveness of local products versus imported goods in Indonesia.
A decade ago, Rachmat Gobel explained the reasons imported products could be cheaper than domestic ones. The entrepreneur stated that tariff harmonisation is necessary so that production costs are not too high, thereby keeping selling prices affordable. “For example, if we make domestic components, it is better to import components than to make them domestically. Tariff harmonisation is needed,” Rachmat Gobel said in a BeritaSatu YouTube broadcast.
Secondly, to advance national industry, regulatory harmonisation is required so that policies in Indonesia can support each other. This step is particularly crucial amidst the dominance of Chinese products in the domestic market. Rachmat Gobel believed local products have great potential to win the competition through three main strategies: product innovation, satisfactory after-sales service, and consistent market network strengthening.
The former Minister of Trade reminded that industries based on domestic investment are fully committed to building the national market. Unlike imported products that merely engage in buy-and-sell transactions, local products bear a moral responsibility to maintain long-term consumer trust, one of which is through a guarantee of excellent after-sales service. “What we must sell is that we have a responsibility to Indonesian consumers. We must build consumer trust. If something happens, that is why after-sales service must be developed because it is part of the industry’s responsibility,” Rachmat explained. According to data from the Central Statistics Agency (BPS) in May 2026, Indonesia’s goods trade balance recorded its deepest deficit, reaching US$1.61 billion.