Jakarta. Finance Minister Purbaya Yudhi Sadewa has formally imposed safeguard duties on imports of cotton woven fabrics, with the measure set to take effect on Jan. 10, as the government moves to shield the domestic textile industry from a surge in imports.

The policy is stipulated under Finance Ministry Regulation (PMK) No. 98/2025, signed on Dec. 22, 2025, and promulgated on Dec. 31, 2025.

The regulation states that safeguard measures may be applied when a spike in imports poses a serious threat of injury to domestic producers. An investigation by the Indonesian Trade Safeguard Committee (KPPI) found that rising imports of cotton woven fabrics had caused serious harm to the local textile industry.

As a member of the World Trade Organization, Indonesia said the use of trade safeguard instruments was necessary to maintain fair competition, according to the regulation.

The safeguard duty, locally known as Bea Masuk Tindakan Pengamanan (BMTP), will be applied for three years under a declining tariff scheme. In the first year, duties will range from Rp 3,000 to Rp 3,300 per meter, depending on tariff classification. The rate will fall to Rp 2,800–Rp 3,100 per meter in the second year and further to Rp 2,600–Rp 2,900 per meter in the third year.

The BMTP will be imposed in addition to existing import duties, including most-favored-nation rates and preferential tariffs under international trade agreements.

However, the government has granted exemptions for imports originating from 122 developing countries that are WTO members, including Malaysia, Thailand, the Philippines, as well as several countries in Africa and Latin America.

Importers seeking exemptions must submit a certificate of origin for cotton woven fabric imports from eligible countries, as stipulated under Article 6 of PMK 98/2025. If the origin requirements are not met, or if a retroactive verification is still under way, the imported products will remain subject to the safeguard duty in accordance with prevailing rules.