The Indonesian Trade Security Committee (KPPI) recently announced the imposition of safeguard import duties (BMTP) on 27 harmonised system (HS) codes of cotton yarn.
The measure followed a KPPI investigation into specific HS-coded yarn imports initiated at the request of the Indonesian Textile Association (API). The probe found a surge in imports had caused serious losses to the domestic industry.
“The domestic industry that produces cotton yarn has suffered serious losses due to the surge in imports of similar products,” said KPPI chairperson Julia Gustaria Silalahi in a statement.
Losses were substantiated by several key indicators, including a decline in production and domestic sales volume, capacity utilisation, productivity and labour, as well as financial performance, according to Indonesian media reports.
The BMTP on the 27 imported goods will be effective for three years from October 30, 2025, to October 29, 2028. The safeguard duty rate will be applied on a degressive schedule across the three-year period.
During the initial period, from October 30, 2025, to October 29, 2026, the BMTP is fixed at Rp 7,500 per kilogram. In the subsequent second year, spanning October 30, 2026, to October 29, 2027, the duty is adjusted to Rp 7,388 per kilogram.
For the third year, from October 30, 2027, to October 29, 2028, the BMTP is set at Rp 7,277 per kilogram.
News Courtesy : Fibre2Fashion
