Jakarta (ANTARA) - Executive Director of the Center of Reform on\nEconomics (CORE) Indonesia, Mohammad Faisal, has assessed that the zero\nper cent tariff granted by the United States on Indonesian textile and\ngarment products will greatly benefit the country\u2019s export-oriented\ntextile industry.<\/p>\n
\u201cThe textile industry oriented towards exports to America will\ncertainly benefit. Our export market share to the United States is more\nthan 60 per cent, so conditions will improve with the zero tariff,\u201d\nFaisal said when contacted in Jakarta on Friday.<\/p>\n
He explained that approximately half of national textile production\nis destined for export, with the majority heading to the US market. He\ntherefore considers this policy will directly strengthen the\ncompetitiveness of Indonesian products in the global market.<\/p>\n
However, Faisal emphasised that the benefits would only be felt by\nbusinesses reliant on sales to the US.<\/p>\n
\u201cFor those not exporting to America, nothing changes. What would help\nthem is a policy to control imported products from China,\u201d he said.<\/p>\n
According to Faisal, the surge of cheap clothing imports from China\nin 2025 has depressed the domestic market and driven a number of\nfactories to carry out mass layoffs.<\/p>\n
\u201cMany factories have closed because the domestic market has been\neroded by far cheaper imports, particularly from China,\u201d he\nexplained.<\/p>\n
Faisal added that the flood of Chinese textile products into\nIndonesia is also a knock-on effect of the tariff policies imposed by US\nPresident Donald Trump on Chinese goods.<\/p>\n
\u201cChinese products that cannot enter the American market will\nnaturally seek routes to other countries. Indonesia has become one of\nthe easiest markets to penetrate because its trade barriers are\nrelatively limited,\u201d he said.<\/p>\n
Given these conditions, Faisal believes import control policies are\nkey to sustaining the domestically oriented textile industry, whilst the\nzero tariff in the United States will provide a welcome boost for\nexporters.<\/p>\n
The Indonesian and US governments have agreed to eliminate import\nduties to zero per cent for Indonesian textile and garment products\nthrough a specific quota scheme. The agreement was signed on Thursday\n(19 February) Washington time through a Tariff Rate Quota (TRQ)\nmechanism.<\/p>\n
The scheme allows a specified volume of textile and garment imports\nfrom Indonesia to enter the US at zero per cent tariff, with quotas\ndetermined based on the volume of textile raw materials imported by\nIndonesia from the US, such as cotton and synthetic fibres.<\/p>\n
Coordinating Minister for Economic Affairs Airlangga Hartarto\npreviously stated that this policy would benefit millions of\nworkers.<\/p>\n
\u201cThis certainly provides benefits for four million workers in this\nsector, and if we include their families, it significantly affects 20\nmillion Indonesians,\u201d he said during a virtual press conference in\nJakarta on Friday.<\/p>\n
Beyond textiles and garments, there are 1,819 tariff lines for\nIndonesian products now receiving duty-free access at zero per cent,\ncovering palm oil, coffee, cocoa, spices, rubber, electronic components\nincluding semiconductors, and aircraft components.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/analyst-us-zero-per-cent-tariff-to-benefit-indonesias-textile-industry-1771658679", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }