Finance Minister Purbaya Yudhi Sadewa Signs Synthetic Yarn Safeguard Duty Regulation

Finance Minister Purbaya Yudhi Sadewa has signed Finance Ministerial Regulation No. 37 of 2026, which governs safeguard import duties (BMPT) on imported yarn (excluding sewing thread) made from synthetic and artificial staple fibres. BMPT is a state levy to recover losses or prevent potential harm to domestic industries caused by a surge in imported goods.

BMPT was previously regulated under PMK No. 46 of 2023, but its validity has expired. “Following the recommendation of the Indonesian Trade Safeguard Committee, the Minister of Trade proposed to the Minister of Finance the imposition of safeguard import duties on imports of yarn (excluding sewing thread) made from synthetic and artificial staple fibres,” according to the regulation dated Monday, 1 June 2026.

The imposition of BMPT is in addition to general Most Favoured Nation (MFN) import duties and preferential duties under international agreements. However, BMPT is exempted for 123 developing WTO member countries, including Bangladesh, Brazil, the United Arab Emirates, and South Africa.

BMPT applies to imported yarn under tariff codes 5509.22.00, 5509.32.00, 5509.51.00, 5509.53.00, 5510.12.00, and 5510.90.00. The duty will be in effect for two years from the regulation’s implementation on 22 May 2026.

For the first year (22 May 2026 to 21 May 2027), the import duty rate is set at Rp 324 per kilogram. For the second year (22 May 2027 to 21 May 2028), it will be Rp 308 per kilogram.