Indonesia to tighten export certificates to curb transshipments

The Indonesian Ministry of Trade has pledged to tighten control over the issuance and use of certificates of origin (SKA) for exported products to prevent the country from being used as a transshipment hub.

Transshipments involve rerouting goods from one country through another to obtain the necessary documents before being exported to a third country. China is reportedly employing this tactic amid the ongoing tariff war.

“We will take enforcement measures against such practices by closely monitoring the circulation of SKA,” Trade Minister Budi Santoso remarked in Jakarta on Thursday.

He observed that the growing volume of transshipped goods is likely linked to the higher tariffs imposed on products from various countries by the United States government under President Donald Trump's order.

Santoso emphasized that the Trade Ministry had moved to urge Indonesian business actors against facilitating transhipments, as these practices could adversely affect domestic markets.

"We have taken anticipatory measures, including by calling on business actors to avoid engaging in such practices," he stated.

Earlier, on Wednesday (May 6), Director of Customs and Excise at the Finance Ministry Askolani highlighted that the government is working on initiatives to block Chinese goods from entering Indonesia through transshipment routes.

He pointed to China's tendency to redirect its exports towards European markets due to the souring of trade relations with the US in the wake of the tariffs. This trend has prompted the Indonesian government to act proactively.

"The Indonesian government is preparing anticipatory measures. We may resort to imposing anti-dumping import duties in case Indonesia faces an influx of products traditionally intended for the US," he remarked at the Parliamentary Complex, Jakarta.

Additionally, he said his office had encouraged relevant ministries and agencies to review and adjust their policies to safeguard the domestic business environment.