Government to reconsider import tariff plan pending industry inquiry – Regulations

The government is considering reconsidering a plan announced last week to impose import tariffs of up to 200 percent on some goods from China.

The Commerce Ministry said it would conduct a wide-ranging investigation into industries that have seen large job losses in recent months, including textiles, clothing, footwear, ceramics, electronics and cosmetics, before deciding on new tariffs.

“In order to avoid misunderstandings and improve our trade (environment), we have decided to analyse the latest data on the industry (and the factors) that led to its closure,” Trade Minister Zulkifli Hasan told reporters on Friday.

He added that the investigation by the Indonesian Trade Protection Commission (KPPI) will include an analysis of import data from the past three years to determine whether the increase in imports is directly related to job losses and whether imposing import tariffs is the most effective solution to the problem.

The minister explained that if a causal link between the increase in imports and job losses is proven, the government will impose protective tariffs on those sectors, which could be as high as 200 percent. He added that a separate investigation by the Indonesian Anti-Dumping Commission (KADI) will look into possible dumping practices in exporting countries.

“We will take all necessary measures and comply with both domestic regulations and international institutions such as the World Trade Organization,” Zulkifli stressed.

Also read: Trade barriers will not protect us

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