Higher Import Duty on Clothes Aimed to Protect Local Industry

TEMPO.CO, Jakarta - The Indonesian Government introduced a new set of additional import duties (BMTP) on clothing products and accessories which is explained in the Finance Ministry’s Regulation No.142/PMK/010/2021, which has been made effective since November 12 and will be valid for three years.

The import duty rule came after the investigation held by Indonesian Trade Security Committee concluded that the surge of imported clothing products and accessories poses a serious threat toward domestic industries.

“Imposing the import duty is the government’s attempt to recover the threatening situation,” citing a written statement by the Finance Ministry’s directorate general of tax and excise on November 16. 

The new regulation imposes new import tariffs for 134 types of clothes and accessories ranging from Rp19,260 up to Rp63,000 for each piece in its first year and will gradually drop in years after. The types of the product include casual clothes, formal wear, ensemble, dresses, outerwear, infant clothes, headwears, up to neckwear. 

The import duty applies to all countries, except for headwear and neckwear that are produced by 122 countries in the world. The BMTP policy is hoped to help domestic industry recover and hold the rate of imports as domestic consumption increases.

Read: Sri Mulyani Says Tax will Help Country Survive Pandemic Pressure

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