Indonesia is poised to officially apply import tariffs on tiles and ceramics coming from Vietnam and India, with the policy set to come into force on September 1.

Indonesia will impose import taxes on Vietnamese tiles and ceramics in September
(Photo: CNBC)

During a press conference held on August 28, Head of the Fiscal Policy of the Finance Ministry of Indonesia Febrio Kacaribu, said these change are being done with the aim of protecting local Indonesian industries following a surge of shipments containing the products from the two nations.

Furthermore, it is thought that the move will help Indonesian sectors meet demands for domestic ceramic products whilst developing the national industry, thereby contributing to their economic growth.

The Indonesian minister noted that they remain fully committed to supporting its domestic industries, particularly sectors such as tiles and ceramics, in order to develop them so they are capable of competing with imported products which have enjoyed a recent surge.

According to statistics released by the Indonesia’s Finance Ministry, shipments of tiles and ceramics from Vietnam and India recorded rise of 6.58% and 22.72% during 2018 to 2019 period, respectively.

Based on the World Trade Organization Agreement on Safeguards' article 9.1, Indonesia is permitted to impose import duties on products imported from India and Vietnam due to the market shares of these items in Indonesia exceeding the 3% threshold.

According to Jakarta Globe, tile importers would be liable to pay a 23% safeguard measures import duty for a period of next twelve months, with the duty dropping to 21% and 19% over the second and third years, respectively.