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Jokowi Imposes Import, Anti-Dumping Duties on Textiles to Protect Domestic Industry

25 June 2024 20:40 WIB

TEMPO.CO, JakartaThe Indonesian government, led by President Joko "Jokowi" Widodo, decided to impose safeguard import duties (BMTP) and anti-dumping duties on textiles in response to the challenges facing the domestic textile industry, which has been experiencing significant downturns.

According to a report by Koran Tempo on June 22, numerous textile companies have closed, resulting in some 150,000 workers being laid off.

Trade Minister Zulkifli Hasan or Zulhas announced the decision following an internal meeting with the President at the Presidential Palace in Jakarta on Tuesday, June 25. This afternoon, he and Finance Minister Sri Mulyani Indrawati planned to discuss the regulation, which will be finalized within three days.

“The recent meeting was about complaints from the textile industry and players who have closed several firms, and some others are likely to conduct mass layoffs,” Zulhas said. “Hopefully, the policy will be finished by tomorrow. That means the day after tomorrow or three days later, the BMTP and anti-dumping duties can be imposed.”

Zulhas reiterated that the import and anti-dumping duties would be applied to textiles and textile products (TPT) and ready-made clothing, as well as to electronics, footwear, and ceramics.

“We’re still discussing whether to amend the Trade Ministerial Regulation (Permendag) No. 8/2024 or to draft new regulations,” he said.

Meanwhile, Finance Minister Sri Mulyani said the ministerial regulation on the BMTP and anti-dumping will be issued based on the Trade Ministerial Regulation and the request of the Industry Minister and the Trade Minister.

Permendag No. 8/2024 stipulates the relaxation of import permits for goods in seven categories, including electronics, footwear, textile and apparel accessories, bags, and valves.

Executive Director of the Indonesian Textile Association (API) Danang Girindrawardana said in a statement in Jakarta on June 10, that the import relaxation may potentially disrupt the textile industry's contribution to the economy and the quantity of labor absorption. Therefore, Danang urged the Industry Ministry to ensure protection for the textile industry.

DANIEL A. FAJRI | VINDRY FLORENTIN | HAN REVANDA PUTRA

Editor’s Choice: Flood of Imported Goods Causes 60% of IPKB Member Textile Industries to Close Business

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