US Deal: Indonesia Should Watch Out for Chinese Barriers, WTO\nLawsuit<\/p>\n
Jakarta. An analyst has warned that Indonesia should watch out for\nretaliatory measures from China, which could even morph into an\ninternational trade lawsuit, following Jakarta\u2019s tariff deal that\nlargely benefited Washington.<\/p>\n
Indonesia recently signed a hard-earned tariff pact with the Donald\nTrump 2.0 government. While the Indonesian government claimed it as a\nwin-win, the deal has sparked criticisms after its provisions turned out\nto heavily favor US economic interests. It lets American goods enter the\nIndonesian market duty-free, while Indonesian products are stuck with a\n19% tariff despite some exceptions. A poison pill clause that restricts\nJakarta\u2019s freedom to choose who to trade with also becomes a\ncontroversial provision in the 45-page document.<\/p>\n
Bhima Yudhistira, the executive director of the economic think-tank\nCelios, recently told a press briefing that the deal could ruffle the\nfeathers of Indonesia\u2019s partners. They might even sue Indonesia at the\nWorld Trade Organization (WTO), possibly expanding the list of disputes\nthat Jakarta faces at the global court.<\/p>\n
The Jakarta Globe asked Bhima which country would be the first to\nretaliate to the point of lodging a WTO complaint. Bhima said it would\nlikely be China: Indonesia\u2019s top trading partner and investor.<\/p>\n
\u201cThe Indonesia-US deal is still subject to lawmaking processes. But\nin the meantime, China will possibly prepare non-tariff barriers. This\nincludes requiring Indonesian goods to have multiple layers of\ncertification,\u201d Bhima said.<\/p>\n
\u201cIf those barriers are deemed insufficient, they could file a lawsuit\nat the WTO. This would be very costly and taxing for Indonesia. \u2026 And\nbecause Indonesia gives exclusivity to the US, the chance of us losing\nis high.\u201d<\/p>\n
The retaliatory measures can also deal a fatal blow to Indonesia\u2019s\ninvestment inflows, according to Bhima.<\/p>\n
This was not the first time analysts had warned that the deal could\nanger other parts of the world.<\/p>\n
Prior to the signing, senior economist Yose Rizal Damuri had said\nthat the one-sided deal could upset the European Union (EU). Indonesia\nand the EU are expected to ink a free trade pact in the coming months.\nHowever, the deal is perceived as more mutually beneficial compared to\nthat of Washington, as both sides agreed to set the import duties at 0%\nwhen doing business with one another.<\/p>\n
\u201cRemember it took us almost 10 years to secure a trade deal with the\nEU, but the US managed to secure better terms in a matter of months,\u201d\nYose said early this year.<\/p>\n
China has not pursued legal action against Jakarta at the WTO in\nrecent years. The EU, on the other hand, has several cases with\nIndonesia, ranging from biodiesel to nickel-related disputes.<\/p>\n
Indonesia reported that its trade with China neared $154.6 billion\nlast year. Export-import activities with Hong Kong were valued at $5.5\nbillion. Both have always maintained the top 3 positions as Indonesia\u2019s\nforeign investments. Hong Kong investors had put around $10.6 billion in\nIndonesia throughout 2025. Indonesia saw $7.5 billion in Chinese\ninvestments that year, while US investors only contributed almost $3\nbillion, government data showed.<\/p>\n
Tags: Keywords:<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-faces-potential-wto-retaliation-from-china-over-one-sided-us-tariff-deal-1772050219", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }