Indonesia raises import tariffs on clothing and footwear
Indonesia has increased tariffs on imports of thousands of consumer goods, including clothing, footwear and some fabrics.
The move by the government is intended to help domestic producers, although there are also fears it will fuel inflation.
The new tariffs on clothing such as coats and jackets, suits, blouses and shirts, and T-shirts, have been raised to 25% according to a listing from the finance minister.
The duty hikes come as Indonesia's economy is growing at its slowest pace for nearly six years. Around 6,000 Indonesian textile workers have already been laid off this year amid rising production costs and declining domestic sales.
Data from the Indonesian Textile Association (API) reveals that employers have been forced to fire at least 6,000 of the industry's 1.5m workers as a result of a "sluggish national economy". The slowdown in economic growth in the first quarter of 2015 reached only 4.7%, it noted.
API chairman Ade Sudrajat said the new tariff increases would be beneficial to the domestic manufacturing industry, allowing fairer competition between locally made and foreign goods.
But he also acknowledged higher energy and labour costs make domestic textile and clothing producers less competitive, and urged the government to introduce other policies to stimulate production.
For a list of the new tariff rates, click here.
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