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🇮🇩 Indonesia /Economy & Trade

Saudi Arabia Raises Import Tariffs Up to 15 Percent

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Saudi Arabia has increased import tariffs on most goods to between 6% and 15%, affecting products like agricultural, livestock, and fishery items.
  • The tariff changes, effective June 26, aim to protect and promote local agricultural products, according to Indonesia's Trade Attaché in Riyadh.
  • Indonesian businesses are encouraged to focus on cost efficiency, food safety standards, and value-added products to remain competitive in the Saudi market.

Saudi Arabia has implemented a significant revision of its import tariff structure, raising duties on the majority of imported commodities to rates ranging from 6% to 15%. This move primarily impacts agricultural, livestock, and fishery products, signaling a strategic shift by the Saudi government.

The changes in tariffs by the Saudi government need to be addressed as an effort to open new opportunities.

— Zulvri YenniIndonesia's Trade Attaché in Riyadh commented on the Saudi tariff adjustments.

According to Zulvri Yenni, Indonesia's Trade Attaché in Riyadh, the tariff adjustments, which took effect on June 26, are intended to safeguard and stimulate the growth of the Kingdom's domestic agricultural sector. Out of 51 affected commodities, only cold and other shrimp varieties will maintain their previous 6% import duty. Dozens of other goods, previously subject to a 0% tariff, will now face duties of up to 15%.

Despite the increased tariffs, Indonesian businesses are being encouraged to view this change as an opportunity. Zulvri Yenni advises Indonesian businesses to prioritize cost efficiency, adhere strictly to food safety standards, and develop value-added products to successfully penetrate the Saudi market. He specifically noted that products like shrimp crackers, which are not yet adequately produced by Saudi domestic industries, represent a potential growth area for Indonesian exporters.

Indonesian business actors can pay attention to cost efficiency, compliance with food safety standards, and product development with added value.

— Zulvri YenniThe Trade Attaché advised Indonesian businesses on strategies to compete in the Saudi market following the tariff increases.

Furthermore, Saudi Arabia's focus on strengthening its agricultural and aquaculture sectors could create demand for Indonesian expertise and products in areas such as cultivation technology, cold chain systems, seeds, and other supporting services. This presents a potential avenue for enhanced cooperation between Indonesian and Saudi businesses, fostering mutual growth within the evolving economic landscape.

The various needs that will accompany this policy can become opportunities for cooperation between Indonesian and Saudi business actors.

— Zulvri YenniHe highlighted potential areas for collaboration driven by Saudi Arabia's agricultural development goals.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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