Recently, news about Indonesias plan to impose tariffs of up to 200% on certain imported goods has drawn widespread attention and speculation in international markets. In response, the Indonesian government clarified that this measure is not targeted at any specific country, particularly not China.

Government clarifies misconceptions

Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan clarified the speculation about 200% import tariffs on July 5. He stated that Indonesias planned tariff adjustments aim to protect domestic industries but are not targeted at any specific country, especially not China.

Luhut explained that the policys intent is to safeguard national interests and ensure domestic industries remain competitive in global markets. He noted, Indonesia will not simply follow certain countries, though we must protect our national interests. Therefore, the issue of imposing 200% tariffs on China needs clarification to avoid controversy and misunderstandings among our partners.

Background and policy details

Indonesian Trade Minister Zulkifli Hasan recently announced that Indonesia would impose safeguard tariffs of 100% to 200% on imported products ranging from footwear to ceramics. This decision aims to revive plans to protect domestic industries but was quickly interpreted as targeting Chinese imports.

In response, Luhut stated that this news had caused various misunderstandings. He clarified that on June 25, 2024, Indonesian President Joko Widodo chaired a coordination meeting to protect domestic industries in line with existing regulations and international trade norms. One specific measure was implementing safeguard tariffs on certain textiles, but these tariffs have already been in effect. Luhut emphasized that these measures apply to all imports without distinguishing specific countries of origin.

Strengthening import commodity supervision

In addition to safeguard tariffs, the Indonesian government plans to strengthen supervision of imported goods. Particularly for used clothing or smuggled goods entering Indonesia, stricter measures will be implemented to avoid disrupting domestic markets. This decision aims to ensure a healthy and fair domestic market while protecting the interests of local consumers.

Luhut stated that these measures are aimed at ensuring the stability and healthy development of the Indonesian market and are not targeted at any specific country, let alone China. He revealed that he is in communication with the Minister of Trade to balance national interests with international partnerships.

Emphasizing China-Indonesia strategic cooperation

In his clarification, Luhut emphasized that China is a very important strategic partner for Indonesia in trade and investment. The Indonesian government highly values its cooperative relationship with China and is committed to developing economic cooperation between the two countries based on principles of mutual trust, mutual respect, and complementarity. He noted that against the backdrop of increasing global economic uncertainty, Indonesia and China need to further strengthen cooperation to jointly address challenges.

Luhut said, We want to ensure good relations with partner countries, prioritizing the principles of mutual trust, mutual respect, and complementarity. Especially under uncertain global conditions, it is even more necessary to work together.

Overall, Indonesias clarification of the 200% import tariff policy demonstrates its rational and pragmatic stance in the global economy. The Indonesian government emphasized that this tariff adjustment is not targeted at any specific country, particularly not China. In the future, Indonesia will continue to use policy adjustments to safeguard the healthy development of domestic industries while committing to mutual benefit and win-win cooperation with international partners.