Flood Of Carpet Imports From China, Etc. The Government Imposes Import Duty Starting Tomorrow

JAKARTA - The government through the Ministry of Trade has officially imposed a Safeguard Measure Import Duty (BMTP) on imports of Carpet and Other Floor Covering Textiles, which are included in the Chapter 57 tariff post. This is due to a surge in imports.

Chairman of the Indonesian Trade Safeguard Committee (KPPI) of the Ministry of Trade, Mardjoko, stated that domestic industries need protection in the form of imposition of Safeguard Measure Import Duty (BMTP) on the import of these products.

"The imposition of BMTP is aimed at recovering serious losses or preventing the threat of serious losses, as well as providing opportunities for business actors in related products in the domestic industry to carry out structural adjustments to be able to compete with similar imported products", he said in a press release, Tuesday, 16 February.

Following up on this matter, the Minister of Trade through letter No. 767/M-DAG/SD/10/2020 dated 22 October 2020 has decided on the imposition of BMTP on imports of Carpet and Other Floor Covering Textile Products which are included in the tariff heading of Chapter 57.

Furthermore, on February 2, 2021, the Minister of Finance has stipulated Regulation of the Minister of Finance (PMK) Number 10/PMK.010/2021 concerning Imposition of BMTP on Imports of Carpet and Textile Products for Other Floor Coverings, which was promulgated on February 3, 2021, in the State Gazette of the Republic of Indonesia 2021 Number 88.

"This Minister of Finance Regulation comes into force after 14 days from the date of promulgation, namely on February 17, 2021", he said.

The time period and amount of the BMTP are as follows:

1. First Year (17 February 2021 to 16 February 2022) IDR 85,679 / meter²

2. Second Year (17 February 2022 to 16 February 2023) IDR 81,763 / meter²

3. Third Year (17 February 2023 to 16 February 2024) IDR78,027 / meter²

Previously, the Indonesian Textile Association (API) urged the government to implement safeguards or security measures for imports of carpet products and textile floor coverings. This is to save the domestic textile industry from attacks by foreign products.

Chairman of the API Carpet and prayer mats Committee Jivat Khiani said, from 2017 to 2019 imports of carpet products and textile floor coverings continued to increase by 25.2 percent. Thus, causing the threat of serious losses to the domestic industry.

Furthermore, Jivat said, this condition forces domestic producers to cut their production capacity by up to 40 percent. So that industrial performance has decreased.

"With the decline in production, there has automatically been a significant reduction in employees", he said, in a written statement received by VOI, Monday, August 24, 2020.