Indonesia denies US allegations of Chinese transshipment scam

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has denied allegations from a White House report titled ‘The Great Transshipment Scam’. The report suggests that Indonesia is part of a global shadow network used by Chinese exporters to reroute products to the United States to evade trade tariffs.

Addressing the claims, Airlangga stated that the report is based on assumptions rather than facts. He noted that Indonesia was placed in ‘Tier 2’, implying an integrated manufacturing relationship with China, particularly regarding plastic products. He clarified that industrial zones in Batam and Bekasi have existed since the 1990s and primarily serve domestic needs or regional exports rather than the U.S. market.

Airlangga emphasized that these allegations will not impact the Agreement on Reciprocal Trade (ART) between Indonesia and the United States, as the matter was not part of previous discussions and the government continues to monitor the situation.