Jakarta, CNBC Indonesia – the government Saudi Arabia through General Authority of Saudi Customs officially adopted a policy to increase import duties on 575 products.
Many countries are affected, including Indonesia.
The policy is also considered as a trade war. Because it will give a negative sentiment towards export goods entering Saudi Arabia.
The Minister of Trade (Mendag) Agus Suparmanto acknowledged that the increase in import duties set by Saudi Arabia has the potential to suppress exports of partner countries in Saudi Arabia, including Indonesia. The Director General of National Export Development of Kasan explained that the increase in Saudi Arabia’s import duties would have an impact on Indonesia’s non-oil and gas export performance.
Some of the affected products, including automotive products (HS 87), whose import duties rose from 5 percent to 7 percent, paper products and their derivatives (HS 48) rose from 5 percent to 8-10 percent; and iron, steel, and iron / steel goods (HS 72 and HS 73) up from 5 percent to 8-20 percent.
“The value of Indonesia’s exports to Saudi Arabia for these products reaches more than US $ 624 million and does not include other products. The Government of Saudi Arabia has determined the increase in import duties for these products ranging from 0.5 percent to 15 percent. This of course it will have a direct impact on Indonesia’s exports to Saudi Arabia, “explained Kasan.
According to Kasan, there are superior Indonesian export products that were not affected by the increase in import duties. Among them, palm products and their derivatives (HS 15), wood products (HS 44), and meat and fish products (HS 16).
In addition, vitamin products, seafood, rice, vegetables and fruits, as well as a variety of products that support increased body immunity are still given import relaxation by the Government of Saudi Arabia.
Kadin’s Deputy Chairperson for International Relations, Shinta Widjaja Kamdani, sees Indonesia as an exporting country to Saudi Arabia affected. So that it affects the competitiveness of Indonesian products in the country.
However, Indonesia’s position must comply with these rules, as long as a number of conditions are not violated by Saudi Arabia. This is because Indonesia does not have any trade agreements with Saudi Arabia. We have no right to sue or complain about this rate increase as long as the increase is still below the Saudi Arabian bound tariff commitments at the WTO.
“It is unfortunate because many of our export commodities to Saudi Arabia are subject to higher tariffs such as vehicle products, clothing, food and beverages, and others,” Shinta said.
