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Indonesia imposes import duties on textiles and its products

Indonesia has imposed duties on imports of textiles and textile products. These duties, to the tune of 67 per cent, are a safeguard measure to protect the domestic upstream industry from a surge in imports and encourage the use of domestic products.

Indonesia has seen a jump in imports of textiles and textile products. Imports of textile fabrics rose by 74 per cent between 2016 and 2018. Imports of textile products, such as some types of synthetic yarns, doubled in the three years to 2018. Indonesia imports products from China, South Korea, Thailand and Vietnam, among others. The restriction is aimed at protecting domestic producers of products such as certain types of yarns, fabrics and other goods. The reasoning is that products that can be produced domestically should no longer be imported. Textile importers have to gain approval before they can ship in textile goods. With economic growth, and a shift in demand from basic clothing to functional clothing, such as sportswear, the national textile industry is building production capabilities and increasing economies of scale in order to meet the demand in domestic and export markets. Companies that have been so far oriented to local markets are being encouraged to become more export oriented.