Beijing will closely monitor the possibility that Indonesia will raise import tariffs on Chinese products by up to 200 percent, officials said.
“China closely monitors Indonesia’s possible application of safeguard tariffs on certain products and will take necessary measures to protect the rights and interests of Chinese companies,” Chinese Foreign Ministry spokesman Lin Jian said on Thursday, July 11, 2024.
Indonesia’s Trade Minister Zulkifli Hasan previously announced plans to impose import tariffs of up to 200% on Chinese-made products, but Coordinating Minister for Maritime Investment Luhut Binsar Pandjaitan clarified that Indonesia’s plan to impose such high tariffs on textile products was not aimed at any specific country, including China.
“Regarding Indonesia’s plan to impose high tariffs on imports from China, we note that Coordinating Minister Luhut and Minister Zulkifli stressed that the safeguard tariffs will apply to all countries and will not target any particular country, such as China,” Lin said.
He stressed that both China and Indonesia benefit from bilateral cooperation. “The two countries firmly support free trade, oppose protectionism, and are committed to promoting the healthy and stable growth of bilateral trade and investment cooperation,” he said.
China is ready to work with Indonesia in a mutually beneficial manner to enhance bilateral trade and economic cooperation, striving for strong, balanced, comprehensive and sustainable trade.
“We also look forward to working with Indonesia to jointly uphold a free and open international trade order,” Lin added.
In an official statement on Friday (5/7), Luhut said the application of safeguard tariffs on certain textile products, namely the Import Tariff Safeguard Measures (BMTP), is already in place and is currently in an extension period. The BMTP applies to all imported goods, without distinction of country of origin.
Luhut stressed that the policy needs to be thoroughly reviewed to suit the situation and needs of the domestic industry.
“I have also been in touch with the trade minister and we have discussed the issue. We agreed to prioritise our national interests while maintaining partnerships with friendly countries,” he said.
He asserted that China is one of Indonesia’s most important comprehensive strategic partners in terms of trade and investment, and the Indonesian government is committed to maintaining good relations through continuous communication and dialogue on policy measures between the two countries.
Meanwhile, Zulkifli said the proposed tariffs were a response to previous restrictions on trade and protection of local industries that were not satisfactory to all parties.
