Indonesia has announced new safeguard duties on imported cotton woven fabrics as part of efforts to protect its domestic textile industry from a surge in imports, government sources said. The measures are due to come into force from 10th January and will remain effective for three years under a declining tariff schedule.
Under the new regime, safeguard duties will initially range between 3,000 IDR (US $ 0.18) and 3,300 IDR (US $ 0.20) per metre of cotton woven fabric, with rates set to decrease in the second and third years of the programme. These duties have been introduced in response to an investigation by the Indonesian Trade Safeguard Committee (KPPI), which concluded that an increase in imports posed a serious threat to domestic producers.
Indonesian authorities highlighted that the safeguard measures are intended to give the local industry breathing space as it adjusts to intense competition from cheaper imports. Officials indicated that such imports had been undermining local manufacturing capacity and contributing to financial pressures on domestic textile firms.
The textile industry has faced multiple challenges in recent years, including rising imports of finished and raw textile products, and concerns over illegal imports of second-hand clothing, which have further strained local manufacturers and labour markets. Observers have noted that such pressures have resulted in significant job losses and factory closures in several regions.
Government statements also underscore broader efforts to balance trade policies with international obligations, with authorities emphasising that safeguard duties are consistent with World Trade Organization (WTO) rules allowing temporary protections when import surges endanger domestic industries.
Industry groups have generally welcomed the measures as necessary to stabilise the sector, but warned that long-term viability will depend on sustained domestic demand, improved competitiveness and supportive industrial policy frameworks to help the textile sector adapt and grow
