Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has clarified Indonesia’s plan to impose import duties of up to 200 percent on some products, dismissing speculation that it would target certain countries.
“We are not targeting any country in particular, especially China. All measures are taken based on our national interest,” Luhut said in Jakarta on Saturday, July 6, 2024.
At a limited coordination meeting led by President Joko Widodo on June 25, 2024, the government decided to protect domestic industries in accordance with existing regulations and international trade standards.
One of the measures taken is the implementation of a safeguard tariff or safeguard duties (BMTP) for certain textile products, which have already been applied and are currently subject to an extension period.
The BMTP applies to all imported goods, regardless of the country of origin. Luhut stressed that this policy must be carefully studied to adapt to the conditions and needs of the domestic industry.
“I also communicated with the Minister of Commerce to discuss this issue. We agreed to prioritize our national interest while maintaining partnerships with friendly countries,” Luhut said.
He stressed that China is one of Indonesia’s most important strategic partners in trade and investment. Indonesia is committed to maintaining this good relationship through continuous communication and dialogue on policy measures between the countries.
“We want to ensure that Indonesia’s good relations with partner countries continue to adhere to the principles of mutual trust, respect and complementarity,” Luhut added.
Trade Minister Zulkifli Hasan had previously revealed plans to impose import duties of up to 200 percent on products from China.
“I told my colleagues not to be afraid or hesitate. America can impose tariffs of up to 200% on ceramics and garments; we can too. This is to ensure that our MSME industries can grow and develop,” Zulkifli said on June 28, 2024.
He added that this ministerial regulation is a response to previous trade regulations and local industry protection measures that have not satisfied all parties.
