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Vietnamese fabric exports excluded from Indonesia’s new tariffs

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HCMC – Indonesia’s Ministry of Finance has imposed new tariffs on imports, effective from May to November 2022, to protect its local manufacturers due to the rising imports of fabric, fibers and curtains, but Vietnamese fabric being imported into Indonesia is not subject to the new taxes.

Under the Indonesian ministry’s Decree 56/2020, the levels of self-defense taxes are at 1,405 rupiah or US$0.93 per kilogram from May 27 to November 8, at 1,193 rupiah per kilogram from November 9 to November 8, 2021 and at 979 rupiah per kilogram from November 9, 2021, to November 8, 2022, according to VietnamPlus news site.

Several countries and territories, including Hong Kong and South Korea, are exempted from the new tariffs on synthetic fibers and curtains, while the fabric exports from India and Vietnam to Indonesia are not affected by the new taxes.

Last year, the Indonesian Government imposed temporary duties of up to 67.7% on textile and garment imports to protect its locally manufactured products and encourage domestic consumption.

Moody’s has warned that the U.S.-Sino trade tensions will possibly prompt a shift in fabric, fibers and apparel products from China to Southeast Asia including Indonesia, hindering the stability of demand and supply and hurting local producers.

The United States has levied a 25% import tax on China’s textiles and garments, higher than the levels of 10-15% being applied by Indonesia.

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