Glembert
KN. Indonesian Employers Association (Apindo) Chairwoman Shinta Kamdani said allegations that Indonesia was being used as a transshipment route for Chinese products to the United States should be examined carefully. She said the report warranted attention as it indicated that transshipment and rules of origin would become increasingly important considerations in U.S. trade policy. Shinta stressed the need to clearly distinguish tariff-avoidance transshipment practices from legitimate manufacturing and supply-chain activities.
Economic Affairs Coordinating Minister Airlangga Hartarto said that the transshipment issue involving Indonesia would not affect the Indonesia-U.S. trade agreement, saying the “The Great Transhipment Scam” report did not reflect conditions on the ground. The government continues to monitor developments.
The Agreement on Reciprocal Trade (ART) has been signed and is now awaiting the next process under Section 301; any necessary revisions will be made through amendments before the agreement proceeds to ratification by both countries. Indonesia is classified as a Tier 2 country as an integrated manufacturing hub with China, but Airlangga rejected claims that industrial areas in Batam and Bekasi are part of the “Shadow Transshipment Network” cited in the report.
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