Jakarta. Indonesia once again rejected the US’ claims over being part of China’s “shadow transshipment network”, with a senior minister saying that Jakarta doesn’t export plastic packaging made with Chinese content to the American market.

Chief Economic Minister Airlangga Hartarto told reporters on Thursday that the “transshipment accusations are false”, adding that Washington had not notified Jakarta of the report.

“Our industries in Batam and Bekasi have been around since the 1990s. They are mostly manufacturing industries. Our plastic-based manufacturers are mainly Indonesian companies,” Airlangga said.

He went on to say that Jakarta already has its supplies of plastic inputs produced by petrochemical giants Chandra Asri and Lotte Chemical Indonesia. Airlangga added: “So, it’s not true that we are using transshipped [inputs].”

“Most of the plastic packaging [produced in Indonesia] is mostly used for domestic needs or exported to nearby countries. Not to the US.”

A recent White House report has accused Indonesia and dozens of other countries of being potential conduits for Chinese goods evading tariffs. for having helped China avoid US tariffs via transshipments. The US claimed that China would ship nearly finished products or components to lower-tariff countries for repackaging and minor processing, allowing them to evade the sky-high duties.

The 24-page document showed Washington’s worries over the Bekasi-Batam corridor turning into a major hub for plastic boxes and packing articles made with China-origin inputs. The US said that such activities have put pressure on plastic suppliers in Houston, Lake Charles, Beaumont, and Tulsa. 

Airlangga slammed the report as being written “based on assumptions, and does not reflect the reality on the ground.”

Earlier that day, Airlangga had already told the press that Indonesia has “never done transshipments”, citing that such practices are more common in port-based countries. 

In its report, the US placed Indonesia in “Tier 2” alongside Malaysia and Vietnam. This category groups countries that the US finds to have “significant transshipment volumes combined with deeper integration into China-linked supply chains [or] input sourcing, among others”.

US President Donald Trump has been banking on tariffs to improve the trade balance, while also exerting influence on other countries. The US is now slapping a 10% tariff on Indonesian goods entering its market, saying that Jakarta has failed to curb imports associated with forced labor. The US has assigned China a 12.5% rate over a similar probe. Beijing is also facing other threats, and has had Trump hiking his tariffs to a whopping 145% in the past. 

The Indonesia-US tariff deal — signed in February — sees Jakarta agreeing to make rules of origin “necessary” to prevent third countries from enjoying the tariff cuts. Rules of origin determine where the goods have been produced, not where they have been shipped from.

Trade Ministry data showed Indonesia’s imports from mainland China rose almost 22% year-on-year (yoy) in the first half of 2026, nearing $49 billion. Hong Kong-sourced imports fell around 27% yoy to $1.2 billion.

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