Indonesia plans tariffs of up to 200% on China-made products to protect domestic industries
- An influx of Chinese-made products has hurt Indonesia’s textile industry as companies struggle with lay-offs and revenue loss
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Indonesia BRICS member imposes 200% made in China products
- Thread starter JurongEast
- Start date
Moderate and pragmatic Jokowi also cannot tahan with China irrational behaviour
Indonesia is planning to impose up to 200 per cent tariffs on certain China-made products as it seeks to protect its domestic manufacturing industry against dumping practices triggered by Western nations’ trade wars with Beijing.
President Joko Widodo convened his economic ministers at the Presidential Palace on Tuesday to discuss the tariffs, which are likely to be announced “in two weeks”, according to Industry Minister Agus Gumiwang Kartasasmita.
Indonesia is planning to impose up to 200 per cent tariffs on certain China-made products as it seeks to protect its domestic manufacturing industry against dumping practices triggered by Western nations’ trade wars with Beijing.
President Joko Widodo convened his economic ministers at the Presidential Palace on Tuesday to discuss the tariffs, which are likely to be announced “in two weeks”, according to Industry Minister Agus Gumiwang Kartasasmita.
好像很多国家都不爽
Don't blame the Indonesians theyre trying to build up their industries.
Indonesia economy has always been closed. Not accomodating even with. Neighbouring asean countries.
Won't the tariff bring about inflation and contrary to BRICS policies? Good to see ghost fight ghost
No point Indonesia protecting their rich elites. They dump their money in sinkie or elsewhere.
A globalist regime always sells out its own people. That is its nature.
Indonesia is not part of BRICS yet. It did what it did to get China attention and then special pass into BRICS membership. Just like an infant throwing tantrum when he saw a candy jar.
Since chicons land pissed off...will chicons allow the indons to join?
Some nations presumed that TARIFFS will help protect their industries & consumers. But had they ever heard of Assembly & Made in YYY countries - the opposite model of OEM ( Original Equipment Manufacturer) to Circumvent tariffs?
In order to help more understand, the insignificant nobody me will show how it works, using simple easy to understand model - using a simple product - toothbrush, in brief.
1. A - an American company, spent millions in research, trial tests, marketing, best materials, etc to create a good toothbrush. It then sold to the World at S$2.50/toothbrush, to cover its development costs, overheads & market opportunity as being the leader in toothbrush industry.
2. B - a China factory owner, bought one of the toothbrush & 'Back Engineer' the American innovation - bristles & the handle thru forensics, & then found better & cheaper quality materials, tweaked the original design & started manufacturing the toothbrush, selling it at S$1.00, earning 90cts per toothbrush as B has better economy of scale, cheap labor, etc, to do so.
It costs only 10cts to cover overheads, leaving B with 90cts as pure gross profit, making him a millionaire overnight with more than a million toothbrush sold in 1.4 Billion China population.
3. C - an Indonesian businessman, entrepreneur & OPPORTUNIST, seized upon the coming 200% Indonesian tariff upon China goods.
a) He sets up a 2000sq ft 'factory', the size of a coffee shop, somewhere on one of the island chains far away from Jarkarta govt scrutiny & call it B Indonesian Toothbrush factory, & hired a few technicians & machines.
b) He then sets off to Thailand, which has little or no tariffs on China goods AND is an ASEAN trade neighbor of Indonesia, to set up a local import firm.
c) He then flew to Guangdong China, to meet with B - the China owner of the toothbrush factory, to work out a deal - to import the bristles & handle of the toothbrush, UNASSEMBLED. A deal was struck - B sells him the toothbrush PARTS at 60cts per toothbrush, & C to pay for logistics.
B - the China owner, still makes a profit at 50cts per toothbrush, as he needs not hire assembly technicians/automation or pay for logistics/overheads.
d) C - the Indonesian bizman, then flew home, & set his scheme in motion - importing UNASSEMBLED toothbrush parts from China thru Thailand to Indonesia, where he set his technicians & machines to assemble the toothbrush, then sold the toothbrush as MADE IN INDONESIA at S$1.80cts, which is lower than the tariffed one that is made in China.
10cts was his overhead costs, as he bought in bulk & Indonesian labor/land, etc costs are low. Thus he made $1.80cts (selling price) - 60cts( paid to China factory owner) - 10cts ( local overhead costs) = $1.10/toothbrush sold, making him a millionaire overnight when a million of such toothbrushes are sold in Indonesia with a population of 275million....
4. In end, who wins & WHO loses?
5. It is comprehensible that many other nations fear China's rise. It cares NOT about branding or quality unlike other nations, BUT only to keep its Billion workface employed & out of poverty. It is not an industrial juggernaut making millions of other products selling to the World that some make it out to be. It has its weaknesses.
It may be able to obtain durian seeds & grow such on its own lands in the South that has conducive temperatures on a bigger scale with its cheap land & labour costs, then export in huge quantity to bring in revenue, but it will not be able to grow raw materials such as steel, etc.....
1. A - an American company, spent millions in research, trial tests, marketing, best materials, etc to create a good toothbrush. It then sold to the World at S$2.50/toothbrush, to cover its development costs, overheads & market opportunity as being the leader in toothbrush industry.
2. B - a China factory owner, bought one of the toothbrush & 'Back Engineer' the American innovation - bristles & the handle thru forensics, & then found better & cheaper quality materials, tweaked the original design & started manufacturing the toothbrush, selling it at S$1.00, earning 90cts per toothbrush as B has better economy of scale, cheap labor, etc, to do so.
It costs only 10cts to cover overheads, leaving B with 90cts as pure gross profit, making him a millionaire overnight with more than a million toothbrush sold in 1.4 Billion China population.
3. C - an Indonesian businessman, entrepreneur & OPPORTUNIST, seized upon the coming 200% Indonesian tariff upon China goods.
a) He sets up a 2000sq ft 'factory', the size of a coffee shop, somewhere on one of the island chains far away from Jarkarta govt scrutiny & call it B Indonesian Toothbrush factory, & hired a few technicians & machines.
b) He then sets off to Thailand, which has little or no tariffs on China goods AND is an ASEAN trade neighbor of Indonesia, to set up a local import firm.
c) He then flew to Guangdong China, to meet with B - the China owner of the toothbrush factory, to work out a deal - to import the bristles & handle of the toothbrush, UNASSEMBLED. A deal was struck - B sells him the toothbrush PARTS at 60cts per toothbrush, & C to pay for logistics.
B - the China owner, still makes a profit at 50cts per toothbrush, as he needs not hire assembly technicians/automation or pay for logistics/overheads.
d) C - the Indonesian bizman, then flew home, & set his scheme in motion - importing UNASSEMBLED toothbrush parts from China thru Thailand to Indonesia, where he set his technicians & machines to assemble the toothbrush, then sold the toothbrush as MADE IN INDONESIA at S$1.80cts, which is lower than the tariffed one that is made in China.
10cts was his overhead costs, as he bought in bulk & Indonesian labor/land, etc costs are low. Thus he made $1.80cts (selling price) - 60cts( paid to China factory owner) - 10cts ( local overhead costs) = $1.10/toothbrush sold, making him a millionaire overnight when a million of such toothbrushes are sold in Indonesia with a population of 275million....
4. In end, who wins & WHO loses?
5. It is comprehensible that many other nations fear China's rise. It cares NOT about branding or quality unlike other nations, BUT only to keep its Billion workface employed & out of poverty. It is not an industrial juggernaut making millions of other products selling to the World that some make it out to be. It has its weaknesses.
It may be able to obtain durian seeds & grow such on its own lands in the South that has conducive temperatures on a bigger scale with its cheap land & labour costs, then export in huge quantity to bring in revenue, but it will not be able to grow raw materials such as steel, etc.....
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Albert Einstein — 'Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.'
.........more so those whom rose to power WITHOUT mental or social merit, or at least an intelligent (w)holistic educated team to support them......
ccp will dump their unwanted and fake products anywhere, impoverished african cuntries included. even africans are pissed.
and now iran.
and now iran.
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Tax on import goods are so high in Indonesia , Indonesians seek medical consultation elsewhere due to expensive equipmrnt and medicine.
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