Philippines Adds Import Tariffs Of Rp.20 Million, Indonesian Automotive Industry Bites Its Fingers

Four-wheeled vehicle assembly activities at one of the domestic production facilities (Photo: Ministry of Industry)

JAKARTA - The Indonesian government through the Minister of Trade Muhammad Lutfi has officially written to the authorities in the Philippines regarding the country's policy to impose Temporary Safeguard Measure Import duties (BMTPS) for automotive products in the form of passenger cars and light commercial vehicles.

"We will continue to take various steps and efforts to free Indonesia from the imposition of BMTPS," said the Trade Minister in an official statement, Thursday, January 14.

Furthermore, the Trade Minister also requested that the ASEAN neighboring countries undertake a professional, constructed effort before taking strategic steps related to international cooperation.

"The Philippine government should have strong evidence before implementing the BMTPS imposition on Indonesian automotive products. The imposition of BMTPS must be based on strong empirical evidence that the Philippine domestic industry is experiencing serious losses due to imported goods, one of which comes from Indonesia, "he said.

In a statement, the Philippine Ministry of Trade and Industry informed that the imposition of BMTPS will be valid for 200 days starting from its issuance in January 2021.

This decision made Indonesia subject to BMTPS for passenger car / vehicle products in the form of cash bonds of around IDR 20 million per unit. However, this policy is exempted for imported passenger cars in the form of completely knocked-down, semi knocked-down, used vehicles, as well as vehicles for special purposes such as ambulances and electric vehicles.

"I hope that the use of the Philippine action instrument must be considered carefully, because basically this instrument can only be used as an emergency measure for import surges resulting from unforeseen development and causing serious losses to the domestic industry. , "Said Trade Minister Lutfi.