Indonesia imposes an import tariff of up to 200 percent on Chinese products.

“High Import Tariff on Chinese Goods to Protect MSMEs, Says Trade Minister Zulhas.”

TEMPO.CO, Jakarta – Indonesia will impose up to a 200% import tariff on Chinese goods to counter the impacts of the US-China trade war.

Trade Minister Zulkifli Hasan announced on June 28, 2024, that this policy will begin once the necessary regulation is issued.

He explained that the trade war is causing a surplus of Chinese products, as they are rejected by Western countries and redirected to markets like Indonesia.

Hasan stated that tariffs on Chinese goods will vary from 100% to 200%. He mentioned, “The US can impose a 200% tariff on imported items such as ceramics or clothes, and we can do the same to support our local businesses.” A new regulation is being developed to address concerns about the effectiveness of previous rules in safeguarding local industries from Chinese imports.

Trade Minister Regulation No. 37 of 2023 initially controlled imports through a post-border mechanism and checks on imported products. It also limited tax-free personal products for returning Indonesian workers to $500 for 56 items.

“Regulation No. 37 was able to restrict and control imports,” Hasan said. However, it caused delays in customs due to additional checks on workers’ luggage.

“Our workers were upset, and customs couldn’t handle the increased workload,” he said.

However, the bottleneck persisted, with cargo containers piling up at various ports, leading to the implementation of Trade Minister’s Regulation No. 8 of 2024.

“But again, our industries, particularly textiles, complained and requested the return of Regulation No. 37,” Hasan said.

These high tariffs may lead to including other nations. Vietnam, Cambodia, Malaysia, and Thailand may be next.