Indonesia is set to implement new safeguard duties on cotton woven fabrics starting 10 January, in an effort to protect its domestic textile industry from a significant rise in imports, according to local media reports.
The newly signed policy—approved on 22 December—allows the government to impose safeguard measures when import surges pose a serious threat to local manufacturers, the Jakarta Globe reported. The decision follows an investigation by the Indonesian Trade Safeguard Committee (KPPI), which concluded that increasing volumes of imported cotton woven fabrics have already negatively affected the competitiveness of Indonesia’s textile producers.
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Three-Year Safeguard Duty with Declining Rates
Under the regulation, the Bea Masuk Tindakan Pengamanan (BMTP) duty will be applied in addition to existing import tariffs, including MFN duties and preferential rates in trade agreements.
The safeguard duty will remain in place for three years, gradually decreasing each year:
- Year 1: Rp3,000–Rp3,300 per metre (approx. $0.18–$0.20)
- Year 2: Rp2,800–Rp3,100 per metre
- Year 3: Rp2,600–Rp2,900 per metre
Developing Countries Exempted
Imports from 122 developing WTO member countries—including Malaysia, Thailand, the Philippines, and multiple African and Latin American nations—will be exempt from the new safeguard tariff.
However, the publication notes that if origin requirements are not fully met, or if retroactive verification is still pending, the products will still be subject to the BMTP duties in accordance with Indonesian regulations.
Goal: Stabilise Local Industry Under Pressure
The policy is part of Indonesia’s broader strategy to stabilise its textile sector, which has seen rising competition from lower-cost imports. Industry observers say the measure could offer temporary relief to domestic manufacturers as they work to strengthen production capabilities and market competitiveness.
