The General Chairperson of the Indonesian Filament Fiber and Yarn Producers Association (Apsyfi), Redma Gita Wiraswasta, criticized the stipulation of the Safeguard Measures Import Duty (BMTP) for fabric products through the Minister of Finance Regulation (PMK) No. 48/2024, which he considered too late and reflected the poor performance of the Ministry of Finance (Kemenkeu). According to Redma, the stipulation of this PMK has been greatly delayed, almost two years after the recommendations from the Ministry of Trade (Kemendag) and the Ministry of Industry (Kemenperin) which were submitted in 2022.
Redma assessed that this decision showed the failure of the Ministry of Finance to respond effectively to the problems faced by the local textile industry. "This shows the poor performance of the Ministry of Finance which does not want to listen to technical ministries and feels that it can be arrogant in having the authority," he said. Although the rates set in PMK No. 48/2024 is the result of a fair adjustment based on the recommendations of the Indonesian Trade Security Committee (KPPI), the implementation of this policy in the field is the key to its success.
PMK No. 48/2024, which came into effect on August 9, 2024 and will be valid for three years, sets additional tariffs on imported fabrics from China, Hong Kong, and South Korea, as well as five types of imported fabrics from 124 other countries. This policy is a government step to protect the local textile industry from the impact of cheap goods flooding the market, especially products from China.
The highest tariff for imported fabrics is set at IDR 10,261 per meter in the first year, down from the previous maximum tariff of IDR 10,635 per meter. Meanwhile, for imported carpets, the duty rate is set at IDR 74,461 per square meter in the first year, down from the previous tariff of IDR 85,679 per square meter. Tariffs for these two product categories will experience further declines in the following years.
The Indonesian government is also investigating the possibility of implementing additional tariffs for other imported products. However, Redma warned that if Customs and the Ministry of Finance are not effective in enforcing this policy, PMK No. 48/2024 may not achieve the expected goal of protecting the local industry. "Don't let this PMK be defeated by the Ministry of Finance through the poor performance of Customs," he said.
This policy is expected to provide better protection for the domestic textile industry, which previously experienced difficulties due to the flood of cheap fabric products from abroad.