Indonesia, Southeast Asia's largest economy, recently announced a major plan to "protect domestic industries."
According to Reuters and other media reports, recently, Indonesian Trade Minister Zulkifli Hasan said that Indonesia will impose 100% to 200% safeguard tariffs on imported products such as footwear, clothing, textiles, cosmetics and ceramics to restart and strengthen protection measures for domestic industries.
Indonesia's trade minister Zulkifli Hasan said on Friday that the new tariffs will be implemented soon and could affect imports of footwear, clothing, textiles, cosmetics and ceramics.
He stressed that if imports are allowed to flow in unchecked, Indonesia's micro, small and medium-sized enterprises could be at risk of going out of business. He explained that this policy aims to ensure that Indonesia's MSMEs and industries can survive and thrive in a highly competitive market environment.
Indonesia's Trade Guarantee Commission is investigating the determination of tariff rates, a senior official at Indonesia's trade ministry said on Saturday.
According to Statistics Indonesia, Indonesia mainly imports clothing and apparel accessories from China, Vietnam, and Bangladesh. As a result, products from these countries are likely to be the main targets of Indonesia's new tariff policy.
Late last year, the Indonesian government enacted a regulation to tighten control of more than 3,000 imported goods, covering everything from food ingredients to electronics to chemicals. However, the regulation was subsequently rescinded as the domestic industry felt that it was too restrictive and hindered the flow of the required imported materials.
While the new tariff policy may raise international concerns, the Indonesian government has made it clear that the policy is to protect the domestic industry from unfair competition. With the official release and implementation of relevant regulations, Indonesia's trade policy will enter a new stage, which will also have a profound impact on its domestic industry and international trade pattern.