Indonesia Faces Trillions In Losses Due To Unregistered Textile Imports From China
Indonesia’s Ministry of Cooperatives and SMEs has reported a significant discrepancy between China’s export figures and Indonesia’s import data, leading to suspicions of unregistered textile imports from China. According to Temmy Setya Permana, the ministry’s acting deputy chairman for SMEs, the disparity suggests that illegal imports have flooded the Indonesian market.
“There is a large discrepancy in the HS code for apparel 61-63. China’s export data to Indonesia is almost three times higher than Indonesia’s imports from China,” Permana stated on August 6. “This indicates that unregistered products are entering the country illegally.”
Data from the ministry reveals that the potential value of Chinese textile products to Indonesia in 2022 was Rp29.5 trillion, while the actual recorded imports from China were only Rp31.8 trillion, compared to China’s reported exports of Rp61.3 trillion. Similar discrepancies were observed in 2021, prompting concerns about illegal imports.
The influx of unregistered goods has distorted market prices and could result in the loss of 67,000 jobs and a potential annual loss of Rp11.83 trillion in multi-sector GDP from the textile industry. To combat this, the ministry has recommended a 200 percent safeguard import duty (BMTP) on textile products, particularly targeting end-use items like apparel, accessories, and footwear.
