Moody’s Investor Service revealed that Indonesia has exempted fabrics made -in-Vietnam from new import tariffs imposed on some textile products from May 2020 until November 2022. Aside from Vietnam, Indonesia also exempted the Republic of Korea and Hong Kong from these tariffs for the imports of synthetic yarn and curtains, as well as India also for fabrics.
In 2019, the Indonesian government imposed temporary additional duties on imports of textiles and textile products up to 67.7 percent. The fresh move is a safeguard measure to protect the domestic upstream industry from a recent surge in imports and encourage the use of domestic market products.
Previously, Moody’s Investors Service warned that the US-China trade tensions could lead to an influx of Chinese yarn, fabrics, and garments into Indonesia, potentially disrupting the so far stable levels of demand and supply in the country.
Moody’s explained that tariffs imposed by the US on Chinese textile exports are at 25 percent versus the 10-15 percent that Indonesia has implemented.