Iindonesia`s exports to China might increase: Trade Attache

Iindonesia`s exports to China might increase: Trade Attache

Illustration--Some employees work around piles of container at the Tanjung Priok Port in Jakarta.(ANTARA/Prasetyo Utomo)

Beijing (ANTARA News) - Indonesias exports of consumer goods to China might increase due to the Chinese governments policy cutting taxes on imported consumer goods by half, on average, an Indonesian diplomat said.

"This is an opportunity for Indonesia to increase its exports of consumer goods, in particular to China, Dandy Iswara, Indonesian trade attache, told Antara here on Saturday.

Indonesia has predominantly exported cosmetics and skin care products to China.

During the January-March 2015 period, Indonesias exports to China reached US$580,396, showing a significant increase from US$128,216 in the same period last year.

"Other exported consumer goods are sport shoes and sneakers, whose export values also increased during the January-March period, compared to last years same period," the press attache stated.

China slashed import duties on goods, ranging from shoes to cosmetics, to boost spending at home, where the economy is slowing and high taxes often prompt consumers to shop abroad, the Wall Street Journal reported on its official website on May 25, 2015.

Meanwhile, the Chinese Ministry of Finance said recently that it will cut duties by half, on average, on imports, including suits, fur garments and shoes, beginning June 1. A tariff on cosmetics will fall to 2% from 5%, while a duty on diapers will decline to 2% from 7.5%, according to the ministry.

The tax cuts come as China's government looks for ways to boost spending within its borders. The country's retail-sales growth has been sliding and its economy grew 7% year-over-year in the first quarter, its worst performance in six years, according to the daily.

The slowdown has swayed policy makers who had once worried that a duty reduction might hurt tax revenues, analysts say.

The purpose of the duty cuts is to encourage consumers to spend more domestically, the WSJ reported.