JAKARTA, RAKYAT NEWS – Indonesia’s Finance Minister, Sri Mulyani Indrawati, has announced the extension of safeguard import duties on ceramic tiles for an additional two years. The decision, outlined in Ministerial Regulation No. 14/2025, aims to protect the domestic ceramic industry from the adverse effects of surging imports.

The safeguard duty, known as BMTP (Bea Masuk Tindakan Pengamanan), will take effect on February 27, 2025, and is designed to provide local manufacturers with more time to adjust to competitive pressures.

The move comes in response to findings by the Indonesian Trade Safeguard Committee, which revealed that the domestic ceramic tile industry is facing significant challenges due to increased import volumes. The extended safeguard duty is expected to mitigate these pressures and allow local producers to strengthen their market position.

The regulation excludes 124 countries from the tariff, including Brazil, Israel, Malaysia, Thailand, and Turkey, provided they submit a Certificate of Origin.

Under the new regulation, the safeguard duty will be applied at a rate of 12.72% in the first year and 12.44% in the second year. The tariff applies to ceramic tiles, including floor tiles, wall tiles, and fireplace tiles, with a surface area that can be covered by a square of 7 cm or more. However, certain tariff subcategories, such as 6907.30 and 6907.40, are exempt from the duty.

The decision to extend the safeguard duty reflects the government’s commitment to supporting local industries and ensuring their long-term sustainability. By imposing these tariffs, the Ministry of Finance aims to create a more level playing field for domestic manufacturers, enabling them to compete effectively against imported products. This policy is part of a broader strategy to bolster Indonesia’s industrial sector and reduce reliance on foreign goods.

The exclusion of 124 countries from the safeguard duty is a strategic move to maintain positive trade relations while protecting domestic interests. Importers from these countries must provide a Certificate of Origin to qualify for the exemption. This measure ensures that Indonesia continues to engage in international trade while safeguarding its local industries.

The domestic ceramic tile industry has welcomed the extension of the safeguard duty, citing the need for additional time to implement structural adjustments and improve competitiveness. Industry representatives have expressed optimism that the policy will help stabilize the market and encourage investment in local production capabilities.

Critics, however, have raised concerns about the potential impact on consumers, as higher import costs could lead to increased prices for ceramic tiles. Additionally, some argue that the extended safeguard duty may delay necessary reforms within the domestic industry, such as improving efficiency and innovation.

As the new regulation takes effect, stakeholders will closely monitor its impact on both the domestic ceramic industry and the broader economy. The success of this policy will depend on its ability to strike a balance between protecting local manufacturers and maintaining affordable prices for consumers. With this move, the Indonesian government reaffirms its commitment to fostering a resilient and competitive industrial sector. (Uki Ruknuddin)

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