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APSyFI: The national textile industry is headed for a trade deficit, 2018 exports grow 1% and imports grow 14% (yoy).--IKATSI: The growth of the national textile industry is still hampered by floods of imports, Indonesia needs a clothing security law.


	
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Indonesia Facts About Textile Imports & 3 Sri Mulyani Rules PDF Print E-mail
Written by Maizer   
Monday, 02 December 2019

There was a tsunami of textile imports in Indonesia. The implementation of safeguards has finally been carried out by the government. This is solely due to the soaring volume of imported textile products on the domestic market. The Ministry of Trade's KPPI began its investigation on 18 September 2019 after it was submitted by the Indonesian Textile Association (API).

 

The safeguard applications that were investigated included a surge in imports of textile fabrics with the HS code 107 HS. It also spiked 6 HS code in imported yarn (other than sewing thread) from synthetic and artificial staple fiber, and a surge in imports of curtain products (including curtains), blinds, bed nets, and other furniture items by 8 HS codes.

 

Based on data from the Central Statistics Agency for the past three years (2016-2018), the volume of fabric imports continues to increase with a trend of 31.80%.

 

In 2016, cloth imports were recorded at 238,219 tons, then in 2017 it rose to 291,915 tons, and continued to rise to 413,813 tons in 2018.

 

Countries of origin are imported fabrics, including China, South Korea, Hong Kong, and Taiwan. The largest volume of Indonesian fabric imports came from China with an import share of 67.86% in 2018, then 63.61% in 2017, and 61.42% in 2016 of total Indonesian imports.

 

 

3 Sri Mulyani Special Rules

 

Sri Mulyani Indrawati issued three Minister of Finance Regulations (PMK) at once. These three FMDs are related to the flood of imported textile products.

 

The three PMKs are PMK 161 / PMK.010 / 2019, PMK 162 / PMK.010 / 2019, and PMK 163 / PMK.010 / 2019.

 

"That in accordance with the results of the initial investigation of the Indonesian Trade Security Committee there were serious losses suffered by the domestic industry as a result of a surge in the number of imports of fabric products," the PMK wrote number 162.

 

With these three rules, the Ministry of Finance has set a Temporary Safeguard Measures Import Duty (BMTPS) policy for several types of imported goods.

 

 

Through PMK 161 / PMK.010 / 2019, the Ministry of Finance has stipulated BMTPS for yarn products (other than sewing thread) from imported synthetic and artificial staples starting from Rp 1,405 / Kg. Meanwhile, in PMK 162 / PMK.010 / 2019, the Ministry of Finance has also set BMTPS for imported fabric products ranging from Rp 1,318 / meters to Rp 9,521 / meters and ad valorem rates ranging from 36.30% to 67.70%.

 

Whereas in PMK 163 / PMK.010 / 2019, the Ministry of Finance also imposed BMTPS on curtain products (including curtains), inner blinds, bed nets, and other furniture items imported at Rp 41,083 / Kg.

 

Syarif revealed that the BMTPS was applied to several tariff posts in the Indonesian customs tariff book (BTKI).

 

"BMTPS applies to imports of yarn products (other than sewing thread) from synthetic and artificial staple fibers by 6 tariff posts, 107 fabric products and curtain products (including curtains), inner blinds, bed nets, bed nets and other furniture items 8 tariff posts with the tariff rates listed in the PMK, "said Syarif.

 

Syarif added that the three rules will be implemented on November 9, 2019, and will be valid for two hundred days.

 

 

 
		
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