Indonesia (referred to as Indo) is about to impose import duties of up to 200% on some types of Chinese goods. According to Indonesia’s national news agency Antara’s report on June 29, Indonesian Trade Minister Zulkifli Hasan stated on Friday, June 28 that the relevant regulations will take immediate effect once issued.
The trade war is causing China’s oversupply as Chinese products face rejection from Western countries, forcing them to redirect exports towards markets like Indonesia. Import tariffs on Chinese manufactured products will range between 100% to 200%.
“America can impose a 200% tariff on imported ceramics or clothes; we can do the same to ensure the survival and prosperity of our small and medium-sized enterprises and industries,” he said.
Indonesia is drafting a new ministerial regulation to address issues related to the inadequacies of earlier regulations in protecting local industries from the influx of Chinese products. “If we are flooded with imported goods, our small and medium-sized enterprises may go out of business,” the Indonesian Trade Minister said, noting that the upcoming tariffs may affect imports of footwear, clothing, textiles, cosmetics, and ceramics.
According to Reuters, Indonesia’s Ministry of Trade official Budi Santoso stated on Saturday, June 29 that the Indonesian Trade Security Committee is investigating to determine specific tariff rates.
Data from the Statistics Bureau shows that Indonesia mainly imports clothing and clothing accessories from China, Vietnam, and Bangladesh. According to Vietnam News Agency, on June 25, the Indonesian government announced measures to protect the textile and textile sector, introducing two protective measures including the Textile Import Tax (BMTP) and the Anti-Dumping Import Tax (BMAD) to shield local industries from the surge in imported textiles.
BMTP is a national tax aimed at preventing domestic industries from suffering severe losses due to a surge in imported goods. BMAD will be an additional import duty. Indonesian Finance Minister Sri Mulyani Indrawati revealed that a policy will be introduced to protect the textile and textile product industry from the impact of imported goods. She stated after a cabinet meeting at the presidential palace that two new regulations will be issued based on the opinions of the Minister of Trade and the Minister of Industry.
Data from the Indonesian Statistics Agency shows a consistent increase in clothing and accessory imports in the first quarter of this year. Imports amounted to $12.26 million in January, rising to $20.87 million in February, and further increasing to $23.98 million in March.