High Import Tariff on Chinese Goods to Protect MSMEs, Says Trade Minister Zulhas

TEMPO.CO, Jakarta - Indonesian Trade Minister Zulkifli Hasan or Zulhas affirmed that the government will impose an import tariff of up to 200 percent on Chinese products in response to the trade war between China and the United States.

He explained that the trade war had triggered oversupply and overcapacity, leading to a surge in Chinese imports into Indonesia, including clothing, steel, and textiles. These products, often rejected by Western markets, threaten to flood and harm Indonesia's domestic industries, particularly small and medium-sized enterprises (MSMEs).

“We are finalizing the Trade Minister’s Regulation in the next day or two,” Zulhas said in Bandung, West Java, on Friday, June 28, as reported by Antara.

He believed that the import duties, ranging from 100% to 200% of the goods' value, would act as a safeguard against the import surge.

He justified the high tariffs by citing the US's similar actions. “The United States can impose a 200-percent tariff on imported ceramics or clothes; we can do the same to ensure that our MSMEs and industries will survive and thrive.”

He acknowledged that previous regulations intended to tighten import controls had proved ineffective. While the regulation aimed to inspect all imported goods, including those brought in by Indonesian migrant workers (PMI), it caused logistical issues and delays.

Therefore, Zulhas emphasized the need for a more balanced approach to both protect domestic industries and ensure smooth import processes.

ANTARA

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