Jakarta. The Trade Ministry announced it will study the potential implementation of two types of import duties to protect the textile and ceramic industries.

Trade Minister Zulkifli Hasan revealed that the two types of import duties are the Safeguard Duty (BMTP) and the Anti-Dumping Duty.

“If imports surge and harm our industries, under national regulations, we can impose the BMTP or Safeguard Duty,” Zulkifli Hasan said on Friday, July 5, 2024.

He made this statement following a meeting led by President Joko Widodo.

Zulhas, as he is commonly known, said that the meeting concluded with a decision to focus on certain products. These include textiles and textile products (TPT), ready-made garments, ceramics, electronics, cosmetics, finished textile goods, and footwear.

“The Ministry will take all necessary measures to protect these products, in accordance with national regulations and international agreements, such as those from the WTO,” said Zulhas.

Zulhas mentioned that the Indonesian Trade Safeguard Committee (KPPI) would review the average imports of these products over the past three years. Based on the review, the correlation with the losses experienced by domestic companies will be examined.

“Data from associations will be checked to see which companies have gone bankrupt or closed. After that, the BMTP will be determined,” Zulhas explained.

The Indonesian textile industry has faced significant layoffs due to the influx of cheaper Chinese textiles. The Confederation of Indonesian Trade Unions (KSPN) reported nearly 50,000 job cuts in the textile industry by early June this year.

Similarly, the Indonesian Anti-Dumping Committee (KADI) is conducting a study on the import of products over the past three years. The outcome of this study will be the basis for imposing Anti-Dumping Duties.

“For instance, if there are ceramics or footwear, we will look at the past three years. If there is a surge that harms our industries, we can impose anti-dumping duties. This is currently being calculated,” Zulhas concluded.

Indonesia is mulling over imposing a 200 percent imported goods such as clothing, steel, and textiles, citing challenges faced by domestic industries competing against cheaper imports from China.

President Joko summoned Industry Minister Agus Gumiwang to the Presidential Palace on Tuesday to discuss the proposed import duty. The minister said that President Jokowi has set a two-week deadline to finalize progress on the plan.