In a strategic move to bolster domestic industries and enhance economic resilience, Indonesia will introduce safeguard duties ranging from 100% to 200% on various imports, including footwear, clothing, ceramics, and more. Trade Minister Zulkifli Hasan announced this initiative, highlighting its importance in supporting local micro, small, and medium enterprises (MSMEs).
The proposed import duties, averaging over 100%, aim to protect the domestic market from being inundated with imported goods, thereby ensuring the sustainability and growth of local businesses. "If we are flooded with imported goods, our micro, small, and medium enterprises could collapse," Minister Hasan stated, emphasizing the need for these measures.
This decision follows Indonesia's earlier regulation to tighten monitoring on over 3,000 imported goods, from food ingredients to electronics and chemicals. Although initially reversed due to concerns from domestic industries about the impact on essential material imports, the new safeguard duties are designed to strike a balance between protecting local businesses and maintaining necessary imports.
The duties, expected to be implemented soon, will primarily affect imports of footwear, clothing, textiles, cosmetics, and ceramics. The Indonesian Trade Safeguards Committee is currently investigating to determine the specific duty rates, according to senior trade ministry official Budi Santoso.
Indonesia's main imports in the apparel and clothing accessories sector come from China, Vietnam, and Bangladesh, as reported by the statistics bureau. The introduction of these safeguard duties is anticipated to enhance the competitiveness of local industries, promote sustainable economic growth, and strengthen Indonesia's position in international trade.
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