JAKARTA, Indonesia—A flood of Chinese products into Indonesia has hit local manufacturers hard, prompting the government to look for ways to placate domestic producers while avoiding angering the country’s biggest trading partner.
“The United States can impose a 200 percent tariff on imported ceramics or clothes, so we can do it as well,” Zulkifli said, to ensure micro, small, and medium-sized enterprises and industries “survive and thrive.” In Bandung district in Indonesia’s West Java province—an area famous for textiles such as batiks, handwoven fabrics and silks—imports of Chinese products have left thousands of workers idle and without regular incomes, said Neng Wati, a manager at manufacturing company Asnur Konveksi.
Now, the biggest challenge is cheap imports from China. In the past two months, output from home-based industries has fallen by 70 percent, the industry organization says.