Recently, news about Indonesias plan to impose tariffs of up to 200% on certain imported goods has drawn widespread attention and speculation in international markets. In response, the Indonesian government clarified that this measure is not targeted at any specific country, particularly not China.

Government clarifies misconceptions

On July 5, Indonesias Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, clarified speculation about 200% import tariffs. He stated that Indonesias planned import tariff adjustments aim to protect domestic industries but are not targeted at any specific country, especially not China.

Luhut explained that the original intention of this policy is to safeguard national interests and ensure domestic industries can maintain competitiveness in the global market. He pointed out, Indonesia will not simply follow certain countries, although we must protect national interests. Therefore, the issue of imposing 200% tariffs on China needs clarification to avoid controversy and misunderstandings among our partners.

Background and policy details

Indonesian Trade Minister Zulkifli Hasan recently announced that Indonesia would impose safeguard tariffs of 100% to 200% on imported products ranging from footwear to ceramics. This decision aims to revive plans to protect domestic industries but was quickly interpreted as targeting Chinese imports.

Regarding this, Luhut stated that the news had caused various misunderstandings and speculations. He explained that on June 25, 2024, Indonesian President Joko Widodo chaired a coordination meeting, deciding to protect domestic industries according to current regulatory provisions and applicable international trade norms. One specific measure is the implementation of safeguard tariffs on several textile products, but these tariffs have actually already been implemented. Luhut emphasized that these measures apply to all imported goods without distinguishing specific countries of origin.

Strengthening import commodity supervision

In addition to safeguard tariffs, the Indonesian government plans to strengthen supervision of imported goods. Particularly for used clothing or smuggled goods entering Indonesia, stricter measures will be implemented to avoid disrupting domestic markets. This decision aims to ensure a healthy and fair domestic market while protecting the interests of local consumers.

Luhut stated that these measures are aimed at ensuring the stability and healthy development of the Indonesian market and are not targeted at any specific country, let alone China. He revealed that he is in communication with the Minister of Trade to balance national interests with international partnerships.

Emphasizing China-Indonesia strategic cooperation

In his clarification, Luhut emphasized that China is a very important strategic partner for Indonesia in trade and investment. The Indonesian government highly values its cooperative relationship with China and is committed to developing economic cooperation between the two countries based on principles of mutual trust, mutual respect, and complementarity. He noted that against the backdrop of increasing global economic uncertainty, Indonesia and China need to further strengthen cooperation to jointly address challenges.

Luhut said, We hope to ensure good relations with partner countries, prioritizing mutual trust, mutual respect, and complementary principles. Especially under uncertain global conditions, it is even more necessary to work together.

In summary, Indonesias clarification of the 200% import tariff policy demonstrates its rational and pragmatic attitude in the global economy. The Indonesian government emphasizes that this tariff adjustment is not targeted at any specific country, especially not China. In the future, Indonesia will continue to adjust policies to maintain the healthy development of domestic industries while committing to mutual benefit and win-win cooperation with international partners.