The fresh move is a safeguard measure to protect the domestic upstream industry from a recent surge in imports and encourage the use of domestic market products.
The policy is regulated in three circulars - PMK 161/PMK.010/2019, PMK162/PMK.010/2019, and PMK 163/PMK.010/2019, which can be accessed on the official website of the ministry.
Through PMK 161/PMK.010/2019, the finance ministry has determined temporary additional duties for yarn products – other than sewing thread – from imported synthetic and artificial staples starting from 1,405 Rp (US$0.1) a kilogram.
Meanwhile, in PMK162/PMK.010/2019, the ministry has also set temporary additional duties for imported fabric products ranging from 1,318 Rp to 9,521 Rp a meter and ad valorem rates ranging from 36.3 percent to 67.7 percent.
Then, in PMK 163/PMK.010/2019, the ministry imposed temporary additional duties on curtains products, blinds, bed nets, and other furniture items imported at 41,083 Rp a kilogram.
Syarif Hidayat, the ministry’s director of international customs and inter-institutions, said on November 11 that the duties will be imposed on 121 imported textile products within 200 days, starting from November 9.
Lately, Indonesia has seen a jump in imports of textiles and textile products. The Indonesian Trade Safeguard Committee recently launched an investigation into the upturn in fabric imports after a complaint was filed by the Indonesian Textile Association.
From the preliminary evidence put forward in the complainant, the committee found a sharp increase in fabric imports. Moreover, there was a preliminary indication of serious damage or potentially serious damage to the domestic industry.
