TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Govt reconsiders import duty plan pending industry probe
The Trade Ministry says it will conduct a wide-ranging investigation into seven industries that have suffered heavy job losses in recent months, including textiles and apparel, before making any decision on possible protective tariffs.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Trade Minister Zulkifli Hasan prepares to address the press on Jan. 4, 2024, during a briefing at the Trade Ministry in Jakarta. (The Jakarta Post/Deni Ghifari)
The government is reconsidering a plan announced last week to impose import duties of up to 200 percent on certain goods from China.
The Trade Ministry now says that before making any decision on new tariffs, it will conduct a wide-ranging investigation into industries that have suffered heavy job losses in recent months, including textiles, apparel, footwear, ceramics, electronics and cosmetics.
“To avoid confusion and to improve our trade [environment], we have decided to review recent industry data [and the factors] that have led to industry shutdowns,” Trade Minister Zulkifli Hasan told reporters on Friday.
The probe, carried out by the Indonesian Trade Safeguard Committee (KPPI), will look into import data from the past three years to determine whether a surge in imports is directly linked to the job losses and whether imposing import duties is the most effective solution to the problem, he added.
If a causal link between surging imports and job losses is established, the government will impose safeguard import duties on these sectors with tariffs of up to 200 percent, the minister explained, adding that a separate probe by the Indonesian Anti-Dumping Committee (KADI) would examine possible dumping practices in exporting countries.
“We will take all the necessary measures and adhere to both national regulations and international institutions like the World Trade Organization,” Zulkifli emphasized.
Read also: Trade barriers won’t protect us
