Empowering Local Businesses: Indonesia Considers Tariffs on Chinese Imports
Siti Faiza, owner of Faiza’s Production House in Solo, Central Java, has been running her traditional women’s wear business since 2008. Starting as a university student, Faiza’s business has grown to employ 12 tailors, but she faces stiff competition from cheap Chinese imports.
Indonesia’s Minister of Trade, Zulkifli Hasan, has proposed tariffs of up to 200 percent on Chinese imports to protect small businesses like Faiza’s. While some support the tariffs as a way to preserve local industries, economists caution about potential negative impacts.
The proposed tariffs could affect various sectors, from footwear to cosmetics, and may strain Indonesia’s trade relationship with China, its largest trading partner. Despite the potential consequences, Faiza remains focused on improving her products and competing in the online market.
As Indonesia navigates this economic challenge, the balance between protecting local businesses and maintaining international partnerships remains a critical consideration for policymakers.