Indonesia will immediately impose a safeguard with a range of import duties ranging from US $ 0.44 to US $ 11.29 per piece, for imported apparel from several countries. These products include upper (casual) garments, upper (formal) garments, down garments, jackets, ensembles and dresses, outwear, baby garments and clothing accessories, as well as headwear and neckwear.
The Indonesian Trade Safeguard Committee (KPPI) issued a notification regarding the enforcement of this measure after investigating imports of apparel between 2017 and 2019 at the request of the Indonesian Textile Association, because the local industry was increasingly pressured by imported goods.
Last year, the Indonesian Textile Association (API) anticipated a compound annual growth rate (CAGR) of 5 percent for the textile and garment sector, but Covid-19 wreaked havoc with the plan, with the country's GDP dropping for the first time since the 1998 Asian financial crisis, shrinking. 2 percent year over year by 2020.
However, analysts believe that the road to recovery has begun, driven by a recovery in household and capital spending. The government has also been working to assist apparel manufacturers by upgrading critical infrastructure such as roads and ports, and helping facilitate business in terms of the incorporation procedures under the recently introduced Omnibus Law.
Although Indonesia has been one of the top 12 countries for apparel manufacturing and procurement over the past two decades, global brands have also paid attention to the fast-growing domestic market there. It's a two-sided coin, as many have wondered whether imposing protective duties would damage the country's $ 16.4 billion clothing market at home.