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Jokowi Sets Two-Week Deadline for 200 Pct Import Duty Plan on Chinese Goods

Bella Evanglista
July 2, 2024 | 2:36 pm
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Loading activities at the cargo ships docked at the Jakarta International Container Terminal port in Tanjung Priok on January 15, 2024. (Antara Photo/M Risyal Hidayat)
Loading activities at the cargo ships docked at the Jakarta International Container Terminal port in Tanjung Priok on January 15, 2024. (Antara Photo/M Risyal Hidayat)

Jakarta. Indonesia is considering a 200 percent import duty on goods from China, including clothing, steel, and textiles, as a response to domestic industries struggling to compete with cheaper imported products.

President Joko "Jokowi" Widodo summoned Industry Minister Agus Gumiwang to the Presidential Palace on Tuesday to discuss the proposed import duty.

The minister said President Jokowi has given a two-week deadline to finalize the report on this plan's progress.

"It's part of the discussion. We will report back in another two weeks," said Agus on Tuesday.

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However, Agus did not provide details regarding discussions within his ministry and other related ministries concerning the implementation of these regulations.

"I can't report yet. Let's wait for another two weeks," he concluded.

The Indonesian textile industry is currently facing significant job cuts. According to the Confederation of Indonesian Trade Unions (KSPN), nearly 50,000 textile industry workers have been laid off this year as of early June. Companies are reluctant to reveal their identities for fear of alarming banks and buyers. Think tank Celios blamed the layoffs on the influx of cheaper Chinese textiles.

China is Indonesia's biggest trade partner, but Indonesia's trade deficit with China in May 2024 nearly tripled to $1.3 billion, up from the $500 million deficit recorded in April, according to the Central Statistics Agency (BPS). The deficit was driven by imports of machinery, mechanical appliances, electrical machinery, equipment, and plastics.

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