ocal importers have expressed concern about the plan to impose a 200 percent duty on products imported from China, warning the move could lead to an increase in smuggling activities.
Indonesian Importers Association (GINSI) chairman Subandi said that the policy would boomerang trade ties between Indonesia and China.
“If the [Chinese products] are subjected to a 200 percent tax, that will be the same thing as closing down trade, Subandi said on Monday, as quoted by news portal Detik.com.
“If [the government] is serious about this, we’re dead,” he added.
The government is planning to impose import duty of between 100 and 200 percent on Chinese goods in response to impacts from the trade war between Beijing and Washington, Antara reported, particularly clothing, steel, textile products and ceramics.
Trade Minister Zulkifli Hasan said on Friday that the measure aimed to protect local businesses against the influx of goods from China due to “overcapacity” and “oversupply” in that country as a result of increased tariffs from Western markets.
GINSI chief Subandi suggested that the government assess the competitiveness of domestic goods, as imported goods were still cheaper despite their added shipping costs and taxes.