Indonesia raises non-tariff barrier to protect local batik against imports
By Ridho Syukro
Jakarta. The Trade Ministry issued on Thursday a regulation requiring
all importers who bring in batik-patterned fabrics to register with the
ministry and secure a special permit to import the textile.
Domestic producers have long complained of a shrinking market share
as cheaper fabrics from Malaysia and China flood in thanks to a
free-trade agreement that has slashed import duties on the product.
Meanwhile, red tape, poor infrastructure, rising wages and a weakening
rupiah continue to push up local companies’ costs, driving up their
prices.
“Domestic-made batik has to be protected from the competition from
imported ones,” Trade Minister Rahmat Gobel said on Thursday. “Batik has
to be the host in its own home.”
Under the regulation, which takes effect as of Oct. 25, importers
must sign up with the Trade Ministry to secure a permit to import any
kind of fabric with a batik pattern.
The regulation also restricts the number of ports through which the
companies may ship in the textiles. These are Belawan in Medan, North
Sumatra; Tanjung Perak in Surabaya, East Java; Soekarno-Hatta in
Makassar, South Sulawesi; and Soekarno-Hatta International Airport
outside Jakarta.
The ministry will also require a report from an independent surveyor to verify the origin of the batik.
Indonesia imported $87 million worth of batik last year – mostly from
Malaysia and China – up 15 percent from 2012, when the country began
cutting the textile import duty under the Asean-China Free Trade
Agreement.
- Indonesia imported $87 million worth of batik last year – mostly from Malaysia and China – up 15 percent from 2012, when the country began cutting the textile import duty under the Asean-China Free Trade Agreement.
