Indonesia Tightens Textile Import Oversight, Eases Business Licensing
The Trade Ministry is pushing ahead with selective import relaxation while maintaining tight controls over textile and apparel imports to protect domestic industries.
Trade Minister Budi Santoso announced that imports of ready-made garments now require Import Approvals (PI), technical clearances, and surveyor reports. “All textile, textile products, and garments remain under strict border control,” he said at a press conference in Jakarta.
Although garment import safeguards have expired, the government is processing an extension. Safeguards for other textile products such as yarn, curtains, fabrics, and carpets remain in place. “This selective approach helps protect us from the surge of cheap imports from countries with overcapacity,” Budi noted.
In a move to ease business operations, the ministry introduced automatic franchise licensing: if local authorities don’t process applications within five working days, businesses can proceed using their registration receipt as a permit. “This addresses long-standing delays faced by SMEs,” Budi added.
As part of regulatory simplification, four outdated trade regulations have been revoked. Trade Ministry Regulation No. 26/2025 now streamlines licensing processes, including the repeal of Regulation No. 25/2025 on franchise certification.
The ministry’s dual approach targeted import controls and business-friendly deregulation aims to boost economic efficiency while safeguarding local industries.
