IDNAround.com – The House of Representatives Commission VI highlighted the Ministry of Trade’s (Kemendag) plan to impose an import duty tariff of 200% on goods from China. This policy is seen as potentially causing a domino effect that could harm other industries and increase illegal imports.
A member of the House of Representatives Commission VI, Darmadi Durianto, emphasized that the 200% import duty policy is not appropriate if applied universally.
“The textile industry is the one at risk, so the policy model should be specifically tailored for that industry,” he said on Monday (July 1, 2024).
The House of Representatives Commission VI highlighted the Ministry of Trade’s (Kemendag) plan to impose an import duty tariff of 200% on goods from China. This policy is seen as potentially causing a domino effect that could harm other industries and increase illegal imports.
A member of the House of Representatives Commission VI, Darmadi Durianto, emphasized that the 200% import duty policy is not appropriate if applied universally.
According to Darmadi, each industrial sector has different characteristics and needs, thus requiring different policy approaches. He stressed the importance of in-depth studies and problem identification in each industrial sector before formulating policies.
“The Ministry of Trade must study each industry market through comprehensive research,” he asserted.
Triggering Illegal Imports
Furthermore, Darmadi predicted that the 200% import duty policy could trigger a surge in illegal imports. “Any policy that imposes a 200% tax will undoubtedly lead to an influx of illegal goods,” he stated.
He is concerned that the domestic industry will be threatened if flooded with illegal goods. “The question is whether the government is prepared for law enforcement if the policy is implemented?” Darmadi asked.
Darmadi cited several industrial sectors that could be harmed by this policy, such as the cosmetics, electronics, and footwear industries. “A different strategy or policy approach is needed for these industries,” he said.
Not Guaranteed to Reduce Imports
He emphasized that a 200% import duty does not guarantee effectiveness in reducing imports from China. “Again, without effective law enforcement, Indonesia will be flooded with illegal imports,” he stated.
Darmadi suggested that import restrictions through additional import duties would be more appropriately applied to labor-intensive industries such as textiles. Meanwhile, for technology-intensive industries such as electronics, a different strategy that does not trigger illegal imports and damage the investment climate is required.
“We must ensure that the policy does not threaten other industries,” Darmadi emphasized. He also reminded that, ultimately, the public would suffer if the policy is not carefully considered.
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