The Indonesian government’s new policy, which was signed on 22 December, aims to implement safeguard measures when a rise in imports could pose a serious threat to domestic producers, according to local news publication Jakarta Globe ID.
This follows the Indonesian Trade Safeguard Committee (KPPI) carrying out an investigation, which suggested that rising cotton woven fabrics had already impacted the country’s local textile sector.
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The Bea Masuk Tindakan Pengamanan (BMTP) duty will be on top of existing import duties, including most-favoured-nation rates and preferential tariffs under international trade agreements.
It is expected to be applied for three years with a declining tariff each year. In the first year, duties will range from Rp3,000 ($0.18) to Rp3,300 per metre based on tariff classification. In the second year, the rate will be Rp2,800-Rp3,100 per metre, and in the final year it will be Rp2,600-Rp2,900.
Imports that come from 122 developing countries that are WTO members will be excluded. This includes Malaysia, Thailand, the Philippines, as well as some countries in Africa and Latin America.
The publication points out that if the origin requirements are not met, or if a retroactive verification is still underway, the imported products will remain subject to the safeguard duty in accordance with its rules.
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