Jokowi imposes import and anti-dumping duties on textiles to protect domestic industry

TEMPO.CO, Jakarta – The Indonesian government, led by President Joko”Jokowi“Widodo has decided to impose a safeguard import (BMTP) and anti-dumping duties on textiles in response to the challenges facing the domestic textile industry, which has experienced significant slowdowns.

According to a report from Tempo Journal on June 22, many textile companies closed their doors, leading to the layoff of some 150,000 workers.

Minister of Commerce 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 are scheduled to discuss the settlement, which will be finalized in three days.

“The recent meeting focused on complaints from the textile industry and players who have closed several companies, and others are likely to carry out mass layoffs,” Zulhas said. “Hopefully this policy will be over by tomorrow. This means that the day after tomorrow or three days later, the BMTP and anti-dumping duties can be imposed.”

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

“We are still discussing whether to amend Ministerial Regulation (Permendag) No. 8/2024 or develop new regulations,” he said.

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

Permendag No. 8/2024 provides for the relaxation of import licensing for goods in seven categories, including electronic products, footwear, textile and clothing accessories, bags and valves.

Indonesian Textile Association (API) Executive Director Danang Girindrawardana said in a statement in Jakarta on June 10 that the easing of imports can this could disrupt the textile industry's contribution to the economy and the amount of labor absorbed. Danang therefore urged the Ministry of Industry to ensure the protection of the textile industry.

DANIEL A. FAJRI | VINDRY FLORENTIN | HAN REVANDA PUTRA

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