30 July 2024

Citing concerns that the influx of Chinese goods into the Indonesian market could have an adverse impact on local micro, small, and medium-sized enterprises, the Indonesian Government has announced that it will be imposing tariffs on Chinese imported goods.

The specific tariffs and categories of affected goods will be determined at a later date. However, Indonesian Trade Minister Zulkifli Hasan has stated that the tariffs could range between 100% and 200% and could affect imports of footwear, clothing, textiles, cosmetics, and ceramics. 

Under Indonesian law, a “safeguard” measure may be imposed on imported goods if there is a surge in imported goods (in absolute terms or relative to the quantity of domestically produced goods which are similar or directly competitive). These measures cannot be more than is necessary to “overcome serious losses” or “prevent the threat of serious losses” to the domestic industry. Alternatively, “anti-dumping” measures may be imposed if the price of imported products is found to be lower than the “normal” value and thereby causing or threatening to cause losses to the domestic industry. 

The plan to impose such tariffs comes amid the backdrop of the ongoing trade dispute between China and the US, as the US works to limit China’s trade with the West and China searches for alternative markets for its goods. 

There is no indication as yet as to when these tariffs will come into effect.