The Indonesian government is drafting regulations to impose anti-dumping duties and safeguard measures for the textile industry and other sectors as a measure to protect against unfair competition from cheap imported products.

The Indonesian government is currently formulating regulations for imposing Anti-Dumping Duties and Safeguard Measures (ADD and SM) for various industries, including textiles, footwear, electronics, ceramics, and bags.

This effort involves coordination among the Ministry of Finance, the Ministry of Industry, and the Ministry of Trade.

"The Ministry of Finance is waiting for letters from the Minister of Trade and the Minister of Industry to promptly respond and take the necessary steps as stipulated by law, such as determining import duties," Finance Minister Sri Mulyani Indrawati told a media conference on Thursday, June 27, 2024.

She emphasized that the ADD and SM regulations would provide fair and just protection for domestic industries, especially in facing unfair competition from imported goods flooding the local market at significantly lower prices.

"These regulations are expected to protect domestic industries from unfair competition, especially with the influx of goods from countries with significant surpluses," she said.

This measure is in response to the increasing number of layoffs and closures in the domestic textile industry due to pressure from imported textile products, particularly from China. These imports flood the local market at much lower prices, squeezing the utilization of domestic factories.

A tangible example is PT Sri Rejeki Isman (Sritex), a domestic textile giant, which admitted to having laid off 3,000 employees this year with more to follow. President Joko Widodo immediately responded by holding a limited meeting last Tuesday, gathering several ministers to address the issues in the textile industry.

The government is also considering reinstating the Ministry of Trade Regulation No. 8/2024, which is an amendment to Trade Minister Regulation No. 36/2023 on Import Policy and Regulation. Minister of Industry Agus Gumiwang Kartasasmita proposed reinstating this regulation to help curb the wave of layoffs in the textile industry.

With these measures, the government hopes to create a fairer competitive environment for domestic industries while ensuring the sustainability and growth of strategic sectors.