Textile and footwear importers will be among scores of firms hit by new legislation brought in as part of a crackdown on smuggling, senior trade officials announced on Wednesday.

They will be required to apply for a special permit and identification number along with importers of food, electrical goods and toys, revealed Indonesia's Trade and Industry Minister, Rini Soewandi.

She said the move was aimed at protecting local businesses from widespread smuggling which sees imported goods being sold up to 40 per cent cheaper than relatively inferior locally produced goods. In addition, smuggling is estimated to cost the government up to $175 million a year in unpaid duties.

"Our local products are seriously threatened by smuggling activities," she said. "So, we do what we can do without waiting for other departments to carry out other measures."

During a two-month transition period, importers have to register with the ministry and will be given special stickers to attach to their imported goods to show they have not been brought into the country illegally.