Government Imposes Protective Import Duty on Cotton Yarn

The Indonesian government issued Treasury Regulation No.67/2025 on 21 October 2025. The rule introduces a Protective Import Duty (BMTP) on all cotton yarn imports. The duty is set for a three‑year period.

The Indonesian Trade Security Committee reported a surge in cotton yarn imports that caused serious losses to the domestic industry. BMTP applies to tariff headings 5204‑11‑10 through 5205‑48‑00 and 5206‑11‑00 through 5206‑45‑00, with rates of Rp7,500 per kilogram in the first year, Rp7,388 in the second, and Rp7,277 in the third. About 120 countries, such as Brazil and South Korea, are exempt if importers provide a certificate of origin.

The duty aims to recover losses and prevent further threats to local cotton yarn producers. Higher import costs should make foreign yarn less competitive, giving domestic manufacturers time to adjust. The measure will lapse after three years unless market conditions improve. Read the full source at news.ddtc.co.id (https://news.ddtc.co.id/berita/nasional/1814617/pemerintah-kenakan-bea-masuk-pengamanan-atas-impor-produk-benang-kapas).