TEMPO.CO, Jakarta - The Indonesian government is reviewing and preparing an official response to the findings of a United States Trade Representative (USTR) investigation, which cast a spotlight on how various nations police imports produced through forced labor.
"The Indonesian government is currently reviewing the USTR announcement regarding the findings of an interim investigation under Section 301 of the Trade Act of 1974 concerning the policies and practices of several countries in preventing the entry of goods made with forced labor," said Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, in Jakarta on Thursday.
The document, titled "Acts, Policies, and Practices of Various Economies Related to the Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labor," groups Indonesia alongside five other economies deemed to have failed in effectively enforcing import bans. Besides Indonesia, the other five countries include Canada, Ecuador, the European Union, Mexico, and Pakistan.
The USTR considers these practices to be restrictive of US trade and has therefore proposed imposing additional import duties on the affected countries.
For Indonesia, the USTR has recommended an additional 10 percent tariff on its goods. Meanwhile, 54 other countries, accused of lacking any laws whatsoever to block forced-labor imports, face a steeper 12.5 percent tariff penalty.
Reacting to the report, Haryo emphasized that Indonesia remains firmly committed to upholding human rights, safeguarding workers, and enforcing labor principles that align with global benchmarks.
The government will follow up on the process prepared by the USTR, which includes submitting written counterarguments and participating in upcoming public hearings.
"Regarding the ongoing discussion process, the Indonesian government will continue to communicate constructively with the United States government," he said.
Furthermore, the Indonesian government plans to tighten its grip on domestic import controls to guarantee that no goods crossing into the country are tied to forced labor practices.
"In line with this commitment, the government will also continue to fortify the enforcement of our import regulations, ensuring that inbound goods do not originate from businesses utilizing forced labor," he added.
The proposed tariffs follow a sweeping USTR probe into 60 of America’s primary trading partners under Section 301 of the Trade Act of 1974. This also serves as a workaround for President Donald Trump's administration to sustain its tariff-heavy agenda after previous direct tariff policies ran into legal roadblocks within the US court system.
Read: US Plans Extra Tariffs for 60 Countries over Forced Labor
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