The Chinese government will closely monitor the possibility of Indonesia imposing increased import duties on Chinese products, with a percentage could reach up to 200 percent, an official said.
“China will closely observe the potential application of safeguard tariffs by Indonesia on certain products and take necessary steps to protect the rights and interests of Chinese companies,” Lin Jian, Spokesperson for the Chinese Ministry of Foreign Affairs, said on Thursday, July 11, 2024.
Previously, Indonesia’s Minister of Trade, Zulkifli Hasan, announced plans to impose import duties of up to 200 percent on goods originating from China. However, Coordinating Minister for Maritime and Investment Affairs, Luhut Binsar Pandjaitan, clarified that Indonesia’s plan to apply such high tariffs on textile products is not aimed at any particular country, including China.
“We note the clarification from Coordinating Minister Luhut and Minister Zulkifli regarding Indonesia’s plan to implement high tariffs on Chinese imports, emphasizing that the safeguard tariffs would apply to all countries and not target any specific nation, particularly China,” Lin said.
He highlighted that both China and Indonesia benefit from their bilateral cooperation. “Both countries firmly support free trade, oppose protectionism, and are committed to fostering healthy and stable growth in bilateral trade and investment cooperation,” he said.
China is prepared to collaborate with Indonesia on a mutually beneficial basis to enhance bilateral trade and economic cooperation, aiming for robust, balanced, inclusive, and sustainable trade.
“We also wish to work with Indonesia to jointly uphold an international trade order that is free and open,” Lin added.
In an official statement on Friday, July 5, 2024. Luhut mentioned that the application of safeguard tariffs, or Import Duty Safeguard Measures (BMTP), on certain textile products has already been implemented and is currently in an extension period. BMTP applies to all imported goods without differentiating between countries of origin.
Luhut emphasized that this policy needs to be thoroughly reviewed to align with the conditions and needs of domestic industries.
“I have also communicated with the Minister of Trade to discuss this issue. We agreed to prioritize our national interest while maintaining partnerships with friendly countries,” he said.
He maintained that China is one of Indonesia’s most important comprehensive strategic partners in terms of trade and investment and that the Indonesian government is committed to maintaining good relations through ongoing communication and dialogue on policy measures between the two nations.
Meanwhile, Zulkifli said that the proposed tariffs are a response to previous regulations on trade and local industry protection that have not been satisfactory for all parties involved.
