October 25, 2025 | 08:58 am
TEMPO.CO, Jakarta - The Indonesian Trade Security Committee (KPPI), under Finance Minister Purbaya, has announced the imposition of safeguard import duties (BMTP) on 27 Harmonized System (HS) codes of cotton yarn. The measure was taken because a surge in imports had caused serious losses to the domestic industry.
"The domestic industry that produces cotton yarn has suffered serious losses due to the surge in imports of similar products," said KPPI Chairperson Julia Gustaria Silalahi in a written statement on Friday, October 24, 2025.
Julia explained that the duties resulted from a KPPI recommendation following an investigation into specific HS-coded yarn imports. The investigation was initiated at the request of the Indonesian Textile Association (API).
Losses were substantiated by several key indicators, including a decline in production and domestic sales volume, capacity utilization, productivity and labor, as well as financial performance.
The BMTP on the 27 imported goods will be effective for three years, from October 30, 2025, to October 29, 2028.
The rules for the imposition of the BMTP were formalized by Minister of Finance Purbaya Yudhi Sadewa through Finance Ministerial Regulation (PMK) Number 67/2025 concerning the Imposition of BMTP on cotton yarn imports, which was enacted on October 20, 2025.
BMTP is a state levy designed to prevent threats of loss or restore the domestic industry when a surge in directly competing imported goods occurs.
The safeguard duty rate will be applied on a degressive schedule across the three-year period. During the initial period, from October 30, 2025, to October 29, 2026, the BMTP for cotton yarn imports is fixed at Rp 7,500 per kilogram. In the subsequent second year, spanning October 30, 2026, to October 29, 2027, the duty is adjusted to Rp 7,388 per kilogram. Finally, for the third year, from October 30, 2027, to October 29, 2028, the BMTP is set at Rp 7,277 per kilogram.
The following is a comprehensive enumeration of the HS codes for imported cotton yarn products subject to the newly implemented BMTP: 5204.11.10, 5204.19.00, 5204.20.00, 5205.11.00, 5205.12.00, 5205.21.00, 5205.22.00, 5205.24.00, 5205.26.00, 5205.32.00, 5205.41.00, 5205.42.00, 5205.43.00, 5205.47.00, 5205.48.00, 5206.11.00, 5206.12.00, 5206.14.00, 5206.21.00, 5206.23.00, 5206.24.00, 5206.25.00, 5206.31.00, 5206.32.00, 5206.33.00, 5206.42.00, 5206.45.00.
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