Indonesia business lobby says tariffs 'not solution' for industry

Head of chamber of commerce calls for fair competition to grow SMEs

20240705 Jakarta textile market

A textile market in Jakarta: The Indonesian government plans to impose new import tariffs on clothing, textiles and other products to protect local industries. © Reuters

AKANE OKUTSU, Nikkei staff writer

TOKYO -- Indonesia's plan to introduce new import tariffs on items like clothing and cosmetics is not the answer for local industries struggling to grow, the head of a major local business group, said in an interview in Tokyo.

Indonesian Trade Minister Zulkifli Hasan said in late June that the country would impose safeguard duties of 100% to 200% on imported footwear, clothing, textiles, cosmetics and ceramics to protect domestic micro, small and medium enterprises (MSMEs), facing competition from manufacturers in countries such as China and Vietnam.

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