Jakarta. The Indonesian Chamber of Commerce and Industry (Kadin) has taken a stance on the contentious 200 percent import duty proposal for goods from China, sparking varied reactions. They urge the Trade Ministry to involve business stakeholders, associations, and unions in shaping the policy.

Indonesia is mulling over imposing a 200 percent import duty on Chinese goods such as clothing, steel, and textiles, citing challenges faced by domestic industries competing against cheaper imports.

President Joko "Jokowi" Widodo summoned Industry Minister Agus Gumiwang to the Presidential Palace on Tuesday to discuss the proposed import duty. The minister said that President Jokowi has set a two-week deadline to finalize progress on the plan.

"Kadin Indonesia calls for the Trade Ministry and related ministries/agencies to engage with business stakeholders, associations, and unions through dialogue forums in the process of drafting and finalizing this policy," said Kadin Indonesia in a press release on Wednesday.

Kadin Indonesia expressed concerns about an influx of imported products flooding the market and urged the Trade Ministry and related agencies to rigorously assess incoming product types and entry routes. They stressed the necessity for stringent measures against illegal imports that adversely affect local markets.

Additionally, Kadin Indonesia proposed establishing a task force to combat illegal imports and regulate goods already circulating illicitly, suggesting collaboration with associations and unions.

They also urged the Trade Ministry to foster a business-friendly environment conducive to national export growth and investment, advocating for import policies that enhance access to raw materials and bolster industrial competitiveness.

Kadin Indonesia further requested a thorough review of products affected by the proposed import duty increase, recommending exemptions for items not yet producible domestically or with unique specifications. They underscored the importance of ensuring these policies do not hamper industrial productivity or export performance.

Finally, Kadin Indonesia called on antimonopoly watchdog KPPU to assist in reviewing policies to prevent monopolies or cartel dominance before finalization.

They reiterated their commitment to supporting micro, small, and medium-sized enterprises (MSMEs) through training, mentoring, and improved market access, aiming to enhance global competitiveness, particularly in exports.

The Indonesian textile industry has faced significant layoffs due to the influx of cheaper Chinese textiles. The Confederation of Indonesian Trade Unions (KSPN) reported nearly 50,000 job cuts in the textile industry by early June this year.

China is Indonesia's biggest trade partner, but the 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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