Jakarta: Indonesia’s plan to impose import duties of up to 200 percent on textile products is not targeted against specific countries like China, said Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.
“All steps are taken based on our national interest,” he pointed out.
The decision to protect the domestic industry, in keeping with the existing regulatory provisions and applicable international trade norms, was made during a cabinet meeting chaired by President Joko Widodo on June 25.
Luhut explained that one step taken so far is the extension of safeguard tariffs already imposed on several textile products. These tariffs apply to all imported goods, regardless of their origin.
He added that the policy needs to be studied thoroughly so that it can be adapted to the conditions and needs of the domestic industry.
“I have discussed this issue with the Minister of Trade,” Luhut said. “While prioritizing national interests, we remain committed to partnerships with friendly countries.”
Luhut emphasized that China remains a crucial strategic and comprehensive partner for Indonesia in trade and investment.
Indonesia is committed to maintaining this relationship through ongoing communication and dialogue regarding policy changes, he added.
“We want to ensure that Indonesia’s good relations with partner countries continue to be built on principles of mutual trust, respect, and complementarity,” Luhut said.
On June 28, Trade Minister Zulkifli Hasan proposed imposing import duties of up to 200 percent on goods, specifically mentioning China.
“The United States can impose a 200-percent tariff on imported ceramics or clothes; we can do it as well to ensure our MSMEs and industries will survive and thrive,” he remarked.
Hasan added that the new trade regulation is a response to previous, less satisfactory, regulations on trade and local industry protection.