Allegations Indonesia Helped China Dodge U.S. Tariffs

KN. Economic Affairs Coordinating Minister Airlangga has denied allegations that Indonesia engaged in transshipment to help China avoid U.S. tariffs. The report alleged that Chinese exporters used repackaging and falsified the country of origin of goods through Indonesia and dozens of other countries to obtain lower import tariffs.

Airlangga said Indonesia had never engaged in transshipment practices, emphasizing that the country focuses on being an industrial-based economy rather than relying on its port sector. “Our industries in Batam and Bekasi have been around since the 1990s. They are mostly manufacturing industries. Our plastic-based manufacturers are mainly Indonesian companies,” Airlangga said. “Most of the plastic packaging [produced in Indonesia] is mostly used for domestic needs exported to nearby countries. Not to the United States.”