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View all search resultsYarn import duties may backfire on garment producers
A new safeguard duty on imported cotton yarn aims to protect local spinners from cheap imports, but the garment industry has warned that costlier materials will hurt its competitiveness in global markets.
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A man arranges yarn by color to weave them into lurik motifs. (JP/Aditya Sagita)
T
he government has imposed a new safeguard duty on imported cotton yarn to protect domestic spinners from cheap imports, but the garment industry has warned that the measure could drive up costs and unravel an already fragile supply chain.
The safeguard duty, as outlined in Finance Ministry Regulation No. 67/2025 signed on Oct. 8, is to cover 27 categories of textile goods and apply for three years, from Oct. 30, 2025, to Oct. 29, 2028.
The tariff will gradually decline over the period, from Rp 7,500 (45 US cents) to Rp 7,388 and then Rp 7,277 per kilogram, and it applies to imports from all countries except for 120 exempted economies.
The move was prompted by declining sales of domestic producers blamed on cheap imports, which has led to lower capacity utilization and workforce reduction.
Indonesian Filament Fiber and Yarn Producers Association (APSyFI) chairman Redma Gita Wirawasta said the new import duty marked a long-overdue step to correct market distortions caused by “dumping practices”.
“I think this is a good policy for the industry, even though it doesn’t directly solve all the issues,” Redma told The Jakarta Post on Monday.
“The most appropriate measure would actually be to impose an antidumping duty. However, that process takes much longer, and with so many companies already closing, implementing safeguard duties is a necessary and timely step.”
