Indonesia Ensures 200% Import Tariff Not Exclusively Targeting Chinese Products
Jakarta, MINA – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has confirmed that the proposed imposition of a 200 percent import tariff does not exclusively target products from China.
He mentioned that the application of import safeguard tariffs is already in effect for certain textile products and is currently undergoing an extension.
This safeguard measure applies to all imported goods without distinction based on their country of origin.
“I have also communicated with the Minister of Trade to discuss this matter. We agree to prioritize our national interest while maintaining partnerships with friendly nations,” Luhut said in an official statement on Friday, as reported by CNN Indonesia.
Luhut also revealed that President Joko Widodo (Jokowi) has instructed his subordinates to tighten import surveillance. This is particularly aimed at used clothing and smuggled goods entering Indonesia.
According to Luhut, this is necessary due to indications of used clothing and smuggled goods disrupting the domestic market.
The government is also opening investigations into unfair trade practices, such as dumping, from any country.
“So we are not targeting specific countries, especially China. All steps are taken based on our national interest. This needs to be thoroughly studied so that the policies implemented truly align with the conditions and needs of domestic industries,” added Luhut.
Luhut considers China as one of Indonesia’s most important comprehensive strategic partners in terms of trade and investment. Indonesia is committed to maintaining this good relationship through continuous communication and dialogue regarding policy measures between the two countries.
Luhut also wants to ensure that Indonesia’s good relations with partner countries continue to prioritize principles of mutual trust, respect, and complementarity.
“I understand well that strategic partnerships with friendly countries are partnerships that are interdependent, especially in uncertain global conditions such as during the handling of Covid-19,” said Luhut.
The government plans to impose up to a 200 percent import duty on imported goods. This is in response to the flood of imports from the Bamboo Curtain country, including clothing, steel, textiles, and others.
Recently, Minister of Trade Zulkifli Hasan stated that seven commodities would be subject to Anti-Dumping Duty (ADD) and Safeguard Import Duty (SID).
These commodities include textile and textile products (TPT), ready-to-wear clothing, ceramics, electronic devices, beauty products, finished textile goods, and footwear.
Zulhas, as he is commonly known, stated that the imposition of ADD and SID aims to protect domestic industries.
“Of course, the Ministry of Trade will make every effort in accordance with national regulations and those agreed upon by international institutions such as the WTO,” he said at the Ministry of Trade office on Friday.
Regarding the imposition of SID, he mentioned that it would be calculated based on the observations of the Indonesian Trade Security Committee (KPPI) regarding the influx of imported products over the past three years.
Meanwhile, ADD will be determined based on the findings of the Indonesian Anti-Dumping Committee (KADI).
“Over these three years, we will see if there has been a significant increase in imports that harm our businesses, then we can impose ADD,” he said. (T/RE1/P2)
Mi’raj News Agency (MINA)
