Protecting Domestic Industry, Government to Impose 200% Import Duty

JAKARTA. The government plans to impose a 200% import duty on imported products from certain countries, to protect the domestic industry. The imposition of import duties will be applied not only to products from China.

Quoting Kontan.co.id, one of the industries affected by the flood of imported products is the textile industry. This was revealed by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.

According to Luhut, the plan has been discussed by the government in the Limited Coordination Meeting (Rakortas) and has been communicated with the Minister of Trade.

Previously, the Ministry of Trade did reveal that it would impose import duties at a rate of up to 200% on textile products from China. Because of its existence that has disrupted the competitiveness of the domestic industry.

To strengthen the argument, an investigation is currently being conducted by the Indonesian Trade Safeguard Committee (KPPI). If the investigation is completed, a safeguard measure import duty (BMTP) policy will be determined.

Meanwhile, citing cnbcindonesia.com, the Ministry of Finance's Fiscal Policy Agency (BKF) said the plan to impose a 200% import duty on Chinese imported products is still in the study stage.

The head of BKF Febrio Kacaribu could not confirm when the determination of the import duty rate would be made. He only said that the imposition would be applied to products from upstream to downstream.

This means that everything from raw materials to apparel will be covered by the new tariff. (ASP/KEN)