Indonesia rejects US report alleging role in tariff-evading transshipment network
Indonesia denies US claims it is part of a transshipment network that helps China avoid billions in US tariffs.
Indonesia has formally denied allegations contained in a recent US report that it is part of a global network involved in the transshipment of goods to evade American import duties.
Senior Economic Minister Airlangga Hartarto issued a statement on Thursday rejecting the findings, which claim that Washington loses between $19 billion and $26 billion annually in tariff revenue due to goods, largely of Chinese origin, being routed through third countries.
The US report names Indonesia, along with Brazil, Malaysia, Thailand, Turkey, and Vietnam, as participants in this transshipment network. Minister Hartarto stated that these accusations are not true and further asserted that transshipment from other countries is not being used for processing within Indonesia.
The minister's denial comes as the US report highlights a significant gap in tariff collection, pointing to a practice where goods are shipped through intermediary nations to circumvent duties. Indonesia's government has moved swiftly to counter the claims, maintaining that its trade practices are compliant with international norms.