Indonesia will impose safeguard measures (BMTP) on certain imported cotton textile products in early 2026 to curb the influx of foreign textiles into the Indonesian market.
The policy is incorporated into Minister of Finance Regulation No. 98 of 2025, signed by the Minister of Finance on December 31, 2025, and officially takes effect on January 10, 10 days after promulgation.
The purpose of the safeguard tariff is to compensate for serious losses suffered by domestic industries due to import surges, or prevent the risk of serious injury to relevant industries, enabling domestic industries to make necessary adjustments.
According to Article 4 of the regulation, this tariff is an additional duty on top of ordinary import duties or preferential duties under international agreements.
The tariff applies to imported cotton textile products from all countries, except for products from 122 specific countries.
Article 6 requires that importers eligible for exemption must submit certificates of product origin; importers using preferential certificates of origin must comply with rules of origin stipulated in international trade agreements, including product origin criteria, transport requirements, and procedural rules.
Meanwhile, importers holding non-preferential certificates of origin must undergo review as stipulated by relevant regulations.
Article 7 states that if exempted imported cotton textile products fail to meet the above requirements, they must still pay the safeguard tariff.
The tariff covers cotton textile products under 16 tariff headings, with rates applied in three phases: in the first year after the policy takes effect, the rate is IDR 3,000-3,300 per meter; in the second year, it drops to IDR 2,800-3,100 per meter; in the third year, IDR 2,600-2,900 per meter.
Indonesia will impose safeguard measures (BMTP) on certain imported cotton textile products in early 2026 to curb the influx of foreign textiles into the Indonesian market.
The policy is incorporated into Minister of Finance Regulation No. 98 of 2025, signed by the Minister of Finance on December 31, 2025, and officially takes effect on January 10, 10 days after promulgation.
The purpose of the safeguard tariff is to compensate for serious losses suffered by domestic industries due to import surges, or prevent the risk of serious injury to relevant industries, enabling domestic industries to make necessary adjustments.
According to Article 4 of the regulation, this tariff is an additional duty on top of ordinary import duties or preferential duties under international agreements.
The tariff applies to imported cotton textile products from all countries, except for products from 122 specific countries.
Article 6 requires that importers eligible for exemption must submit certificates of product origin; importers using preferential certificates of origin must comply with rules of origin stipulated in international trade agreements, including product origin criteria, transport requirements, and procedural rules.
Meanwhile, importers holding non-preferential certificates of origin must undergo review as stipulated by relevant regulations.
Article 7 states that if exempted imported cotton textile products fail to meet the above requirements, they must still pay the safeguard tariff.
The tariff covers cotton textile products under 16 tariff headings, with rates applied in three phases: in the first year after the policy takes effect, the rate is IDR 3,000-3,300 per meter; in the second year, it drops to IDR 2,800-3,100 per meter; in the third year, IDR 2,600-2,900 per meter.