Indonesia responds to US proposal for 10% additional tariffs over forced labor concerns

Indonesia is preparing its official response after the U.S. Trade Representative (USTR) proposed a 10% additional tariff on Indonesian products. The USTR's proposal is based on its assessment that Indonesia has not been sufficiently effective in enforcing import bans on goods manufactured using forced labor practices.

According to Haryo Limanseto, spokesperson for the Coordinating Ministry of Economic Affairs, the Indonesian government is closely examining the USTR's preliminary findings under Section 301 of the Trade Act of 1974. Indonesia is among six countries, including Canada, Ecuador, the European Union, Mexico, and Pakistan, identified as not effectively enforcing such import bans. The USTR views this as a potential impediment to U.S. trade, leading to the proposed tariff.

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The Indonesian government is observing the USTR's announcement regarding the preliminary investigation results based on Section 301 of the Trade Act of 1974 concerning the policies and practices of several countries in relation to efforts to prevent the import of goods produced using forced labor practices.

Limanseto emphasized Indonesia's commitment to international labor principles, human rights, and worker protection. The government plans to follow the USTR's process, including submitting written responses and participating in public hearings. Indonesia will maintain constructive communication with the U.S. government throughout the ongoing discussions. Additionally, Indonesia is strengthening its import oversight to ensure goods are not produced through forced labor, aligning with its commitment to international standards.

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In relation to the ongoing discussion process, the Indonesian Government will continue to communicate constructively with the United States Government.