Indonesia is set to introduce tariffs of up to 200% on imports from China, its biggest trading partner, citing an oversupply of goods from the world’s second-largest economy.
Indonesian Trade Minister Zulkifli Hasan said Friday that Western tariffs on Chinese goods were prompting them to be redirected to countries like Indonesia, according to media reports.
The Southeast Asian country is the latest in a long line of developing nations to announce it would use the measure to protect local industries from perceived overcapacity in China.
“The US can impose a 200% tariff on imported ceramics or clothing; we can also do it to ensure that our MSMEs benefit from this right. [Micro, Small & Medium Enterprises] “and industries will survive and thrive,” he said.
Muhammad Arie/Getty Images
Newsweek contacted the Indonesian Embassy in the United States via a written request for comment.
The new import duties, which will be reduced to a minimum rate of 100 percent, will come into effect as soon as the regulation is published, the trade official said.
Chinese exports to Indonesia have increased dramatically in recent years, reaching $67.1 billion last year, more than double the figure in 2016, according to the UN Commodity Trade Statistics database.
Chinese investment has also flowed into Indonesia, part of a broader surge in investment across the Asia-Pacific region.
A report released earlier this year by Australia’s Griffith University and China’s Fudan University said that nearly half of China’s investment in the Asia-Pacific region went to Southeast Asia, with Indonesia receiving the most of any country in the region.
Indonesia’s decision to raise tariffs echoes recent protectionist measures by other Chinese trading partners.
Last month, Turkey announced a 40% tariff on Chinese vehicles, as projections indicate that Chinese companies will more than double their 4.5% share of the Turkish auto market.
Last month, the European Union also announced it would raise tariffs on Chinese electric vehicles from 10% to 48%.
The 27-member bloc cited Chinese subsidies that allegedly give its electric vehicle makers an unfair advantage.
China said the anti-dumping measures “lack factual and legal basis” and castigated the EU for exaggerating the threat of Chinese state subsidies, acting against the interests of European consumers and undermining global efforts to combat climate change.
In May, President Joe Biden increased tariffs on $18 billion worth of Chinese goods. Tariffs on electric vehicles were increased from 25% to 100%, even though China’s share of the U.S. electric vehicle market is negligible.
China’s Foreign Ministry did not immediately respond to an emailed request for comment.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
