China Business Network (CBN) recently reported that, Indonesian Trade Minister Zulkifli Hasan said not long ago that Indonesia will impose safeguard tariffs of 100 percent to 200 percent on imported products ranging from footwear to ceramics and restart plans to protect domestic industries. This new tariff policy will take effect after the relevant regulations are finalized, and may also affect the import of clothing, textiles, and cosmetics. According to data from Statistics Indonesia, Indonesia mainly imports clothing and clothing accessories from China, Vietnam and Bangladesh. The Indonesian government said that it would first launch two protective measures for textiles and textile products, namely the safeguard import tax (BMTP) and the anti-dumping import tariff (BMAD), to protect the local industry from the surge in imported textiles.
Multiple Chinese import/export businesses commented that, if high tariffs are imposed, it will obviously slow down the trend of purchasing directly from Chinese export companies. Indonesia has recently revealed that one of the main reasons to have additional safeguard tariffs is to keep the American orders for domestic companies. Nowadays more and more Chinese companies have begun to build factories locally in Indonesia. Analysts expressed the belief that, with the global reorganization of supply chains, Chinese companies going overseas is an increasingly important trend. For Chinese entrepreneurs, on one hand, they need the courage to go out, and on the other hand, they need the necessary new knowledge and skillsets.
Source: CBN, July 1, 2024
https://m.yicai.com/news/102173785.html