Indonesia Grapples with Influx of Cheap Chinese Goods
The influx of low-cost Chinese products in Indonesia is disrupting local manufacturers and leading to factory closures and job losses. The Indonesian government is considering imposing up to 200% tariffs on some Chinese imports to protect domestic industries. Despite this, the measure risks provoking economic backlash from China, Indonesia's largest trading partner.
- Country:
- Indonesia
Indonesia is facing an influx of low-cost Chinese goods, drastically affecting local manufacturers and leading to widespread factory closures and job losses. The government is considering implementing tariffs up to 200% on certain Chinese imports to safeguard domestic industries.
Trade Minister Zulkifli Hasan announced the measures in July following a protest by workers in Jakarta. The government aims to help local industries survive, even as China remains Indonesia's largest trading partner with bilateral trade exceeding $127 billion in 2023.
The surge of Chinese goods arises partly from ongoing U.S.-China trade friction, and the issue is being felt across Asia as countries implement free trade agreements. The Indonesian government has set up a task force to monitor imports, however, challenges persist as domestic and international trade dynamics evolve.
(With inputs from agencies.)
ALSO READ
Volkswagen Faces Factory Closures Amid Asian Competition Pressure
Volkswagen Faces Potential Factory Closures Amid Economic Struggles
Volkswagen Faces Unprecedented Factory Closures Amid Rising Asian Competition
Top Financial Headlines: Airbus Inspections, Blackstone's Major Deal, Volkswagen Factory Closures
Volkswagen Braces for Crunch Talks on Cost-Cutting Amid Factory Closures