Protect Domestic Industry, Government Implements Safeguard Measure Imports

Minister of Finance Purbaya Yudhi Sadive (Photo: Doc. VOI)

JAKARTA - Finance Minister Purbaya Yudhi Sadive officially imposed a duty entry policy for security measures (safeguard measures) against imported cotton yarn products, in order to protect domestic industries from a significant increase in imports.

This policy is contained in the Minister of Finance Regulation (PMK) Number 67 of 2025, which comes into effect 10 days after being promulgated on October 20, 2025.

In considering the PMK, it was explained that in accordance with the results of the investigation by the Indonesian Trade Security Committee (KPPI), evidence of a spike in the number of imports, both absolutely and relatively, of the same goods as similar goods or goods that directly compete with domestically produced goods and the surge in the number of imports, caused serious losses to the domestic industry.

In accordance with Article 2 of this regulation, security import duties will be imposed for three years, in addition to public import duties (most approved nation/MFN) as well as priority import duties based on applicable international agreements.

This safeguard action will apply to all countries, except for the 120 countries listed in the PMK attachment, which are exempted.

"Importors are required to submit certificates of origin (certificate of origin) on imports of cotton yarn products originating from countries exempted from the imposition of Safeguard Measure Import Duty," wrote Article 6 PMK 67/2025.

The amount of import duty tariffs for security measures set is as follows:

1. Tariff of IDR 7,500 per kilogram for the first year since PMK took effect;

2. Tariff of IDR 7,388 per kilogram for the second year, after the period of the first year ended;

3. Tariff of IDR 7,277 per kilogram for the third year, after the second year ended.