Jakarta. Indonesia’s imports from China have declined as Jakarta mulls imposing a 200 percent tariff on Chinese goods. 

According to the Central Statistics Agency (BPS), Indonesia’s non-oil and gas imports from China totaled $5.34 billion in June 2024, versus the $6.05 billion worth of Chinese goods that made their way to Indonesia in May. The latest figures showed that Indonesia was importing more from China than it used to in the same period last year. Chinese imports totaled $4.85 billion in June 2023.

BPS revealed that China made up Indonesia’s largest source of deficit in the non-oil and gas trade last month, amounting to $693.4 million, followed by Australia ($331.1 million) and fellow ASEAN member Thailand ($327.8 million). However, data showed that Indonesia’s June deficit with China had shrunk compared to the previous month. The deficit totaled a whopping $1.3 billion in May, BPS data showed.

“The huge deficit with China was driven by our imports of machinery, electrical equipment, and plastics,” Amalia A Widyasanti, the acting head at BPS, told a press briefing on Monday.

Indonesia’s import of Chinese machinery went up 5.22 percent in June compared to the previous month. Jakarta bought more of Beijing’s electrical equipment as its imports rose 4.43 percent on a month-to-month basis. Imports of Chinese plastics and plastic goods saw a 40.87 percent increase also in comparison to May figures, Amalia revealed. 

The statistics agency’s report came at a time when Indonesia’s planned tariff policy caught China’s attention.

Senior minister Luhut Binsar Pandjaitan already clarified that the policy was not targeting any particular country, least of all China. Although the policy is still under review, Indonesia is considering imposing high import duty on textiles, ceramics, and electronics, among others. The layoff-struck Indonesian textile industry has been struggling to compete with cheaper Chinese imports. BPS refused to comment on how the policy would affect bilateral trade once it enters into force, saying that the agency was only responsible for recording the trade figures. 

Chinese Foreign Ministry spokesman Lin Jian recently said his country was aware of Luhut’s statement. China said it would keep an eye on the matter.

“China will closely follow possible safeguard tariffs Indonesia may impose on specific products, and take necessary measures to safeguard the legitimate rights and interests of Chinese companies,” Lin Jian told local reporters last week.