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Indonesia Secures 19% Tariff Rate in New Trade Deal, Navigating Potential Rerouting Risks
indonesia has successfully negotiated a 19 percent tariff rate in a new trade agreement, a move that could significantly benefit multinational corporations seeking to leverage the country’s favorable trade terms. however, the success of this deal hinges on Indonesia’s ability to manage the inherent risks associated with potential rerouting of shipments. Exporters and logistics providers are tasked with ensuring they do not inadvertently facilitate such practices. Multinational firms aiming to capitalize on this tariff advantage must implement robust documentation and maintain clear visibility throughout their supply chains to mitigate legal exposure.
The long-term value of Indonesia’s 19 percent tariff agreement will be determined by its capacity to effectively manage these risks. Strong and consistent enforcement of trade regulations could bolster Jakarta‘s standing as a dependable trade partner. Conversely, a failure to deliver on these fronts could lead to increased scrutiny, the imposition of sanctions, or the potential withdrawal of the benefits currently afforded by the agreement.
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ASEAN Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Jakarta, Indonesia; Singapore; Hanoi, Ho Chi Minh City, and Da Nang in Vietnam; besides our practices in China, Hong Kong SAR, India, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
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