The Indonesian Trade Security Committee (KPPI) has officially announced the introduction of safeguard duties on cotton yarn imports, impacting 27 specific harmonized system (HS) codes. This action comes in response to an investigation prompted by the Indonesian Textile Association (API), which uncovered a significant rise in imports negatively affecting the local industry.
“The domestic industry that produces cotton yarn has suffered serious losses due to the surge in imports of similar products,” remarked Julia Gustaria Silalahi, chairperson of KPPI.
The investigation indicated substantial losses, demonstrated by various key factors such as reduced production output, falling domestic sales volumes, lowered capacity utilization, dips in productivity, decreased labor efficiency, and poor financial performance, according to reports from Indonesian media.
The newly enacted safeguard duties on cotton yarn will be effective for a period of three years, from October 30, 2025, to October 29, 2028. These duties will follow a degressive structure over this duration.
In the initial year, from October 30, 2025, to October 29, 2026, the safeguard duties on cotton yarn will be set at Rp 7,500 per kilogram. For the second year, running from October 30, 2026, to October 29, 2027, the duty will decrease to Rp 7,388 per kilogram.
Finally, during the third year, from October 30, 2027, to October 29, 2028, the safeguard duties will be adjusted to Rp 7,277 per kilogram.
These safeguard duties on cotton yarn reflect Indonesia’s ongoing efforts to protect its domestic cotton yarn industry from the adverse impacts of rising import competition.