Indonesian textile associations are urging the government to take protective measures after a surge of imports from China severely hit the local textile industry. Chinese goods are often criticized for their negative impacts on local economies.
Indonesia is now preparing to introduce tariffs and other measures to protect its textile industry from the influx of Chinese goods. The move is similar to measures taken by many other countries facing challenges the world’s largest manufacturing country poses.
One of the main complaints about Chinese imports is their poor quality. Many Indonesian producers and consumers report that Chinese products, while cheaper, often do not achieve the same durability and reliability as locally produced goods. In addition, Chinese manufacturers are known for their predatory aggressive pricing practices, selling products below market prices to dominate foreign markets. This practice harms local industries that cannot compete with these artificially low prices, leading to job losses and business closures.
Over-reliance on Chinese imports makes the Indonesian economy vulnerable to external market fluctuations and political changes in Beijing. Further, Chinese manufacturing practices are often criticized for their poor ecological standards and take on workers’ human rights.
The Committee on Trade Defence is investigating the issue. It is not yet clear whether the government will impose only safeguard duties or other tariffs, but the head of fiscal policy at the Ministry of Finance has indicated that it could renew safeguard duties on some textile products that expired in November 2022.
Trade Minister Zulkifli Hasan announced that Indonesia could impose up to 200% tariffs on imports to protect local industries from the influx of cheap, low-quality Chinese goods.
Last year, Indonesia imported nearly 29,000 tonnes of synthetic fiber fabrics, mainly from China. Moreover, synthetic fibers are impermeable and unhealthy for the skin.
Last but not least, Chinese goods are often criticized for the problems mentioned above. Reports of poor working conditions, low wages, and exploitation in Chinese factories highlight significant ethical concerns. Additionally, there have been documented instances of forced labor, particularly involving ethnic minorities.
