Indonesia Proposes 200 Percent Tariffs on China

Indonesia is considering imposing 200 percent tariffs on Chinese goods to protect local businesses from the influx of cheap imports, spurred by complaints from small business owners like Siti Faiza, who struggle to compete against lower-priced garments. The Trade Minister has cited the U.S.-China trade war as an influence for this decision, arguing that it is necessary for the survival of Indonesia's 64 million micro, small, and medium-sized enterprises. Meanwhile, Indonesia has emerged as India's largest trading partner in the ASEAN region, with bilateral trade increasing significantly. Despite this growth, Indonesia faces a trade deficit with China while maintaining a surplus with the U.S. Former trade minister Mari Elka Pangestu emphasized the need for Indonesia to balance its trade relations with both the U.S. and China amidst ongoing geopolitical tensions. The complex dynamics of China's influence in the Indo-Pacific, particularly concerning ASEAN's foreign policy and Indonesia's defense relations with India, remain critical as the region navigates these economic challenges.