The Ministry of Finance (MoF) issued a new regulation on the Imposition of Safeguard Duty (Bea Masuk Tindakan Pengamanan/BMTP) on Import of Woven Cotton Fabrics through MoF Regulation No. 98 of 2025 (MoF 98/2025), issued on 22 December 2025 and effective from 10 January 2026.  The BMTP is a protective measure for the domestic textile industry, which has experienced serious injury due to a surge in imports of similar products to Indonesia.

The new regulation emphasizes that the woven cotton fabrics under several HS code (including; 5208, 5209, 5210, 5211, and 5212) are subject to BMTP.  BMTP is an additional duty on top of the applicable import duty, whether the Most Favoured Nation (MFN) tariff or preferential import duty under international trade agreements.

The BMTP is imposed for a period of three years with a gradually decreasing tariff structure:

• In the first year, the BMTP ranges from approximately IDR 3,000–3,300 per meter;
• In the second year, it decreases to approximately IDR 2,800–3,100 per meter; and
• In the third year, it further declines to approximately IDR 2,600–2,900 per meter.

This gradual reduction is intended to provide sufficient time for the domestic industry to adjust and improve its competitiveness.

The BMTP applies to imports originating from all countries, except for 122 developing countries that are members of the World Trade Organization (WTO) with relatively small imports as listed in the annex B of the regulation. Importers claiming the exemption must submit a valid Certificate of Origin (COO) that complies with the applicable rules of origin. If the certificate does not meet the requirements, the imported goods will remain subject to the BMTP.