Indonesia plans to increase import duties on steel related products

Indonesia plans to increase import duties on steel related products

The Indonesian Government is working on an arrangement to increase import tariffs on steel related products to help protect the domestic industries from cheaper imports. As reported by industry sources, the purpose of the government is to organise the tariff system of imports, by implementing higher duties on downstream industry than those on the upstream. Currently, upstream products of hot rolled coil are subject to 20% and cold rolled coil to 25% import tariffs while the tariffs on downstream products such as pipes are ranging between 5% and 10%. A duty of up to 35% is proposed as import tariffs by the Association of Indonesian Pipe Manufacturers. It is believed that a structured tariff policy would help to protect the domestic steel industry.