Indonesia's Finance Minister, Sri Mulyani Indrawati. (Image via Alinea)

Sri Mulyani taxes Chinese and Turkish carpets import

Indonesia's Finance Ministry will impose a three-year Import Duty of Safeguard Measures (BMTP) on the carpet and other floor-covering textiles, starting 17 February 2021. The BMTP will be imposed on countries, especially China and Turkey, while the neighboring countries in the Southeast Asian region will be exempted.

The provision is written in the Regulation of The Minister of Finance (PMK) no. 10/PMK.010/2021 on Import Duty of Safeguard Measures for Carpet and Other Floor-covering Textiles. The Regulation was passed by the Finance Minister, Sri Mulyani Indrawati, on 2 February and ratified the day after. In the second article of the PMK, the BMTP will be imposed for three years.

According to the PMK, the BMTP will be divided into three. First, the import tariff at Rp85,679 per meter square will be imposed in the first year with one year period from the date of the PMK. Second, the import tariff at Rp81,763 per meter square for the second year with one year period after the closing date of the first year. Third, another tariff at Rp78,027 per meter square for the third year with one year period after the closing date of the second year.

Next, the carpet import duty will be imposed on all countries, except the countries listed in the PMK. About 123 countries are exempted from BMTP, including some ASEAN countries such as Brunei, Cambodia, Laos, Malaysia, Myanmar, Philippines, Thailand, and Vietnam. Other countries exempted from the BMTP are Afghanistan, Argentina, Bangladesh, Brasil, Colombia, Ghana, Hong Kong, India, Makau, Papua New Guinea, Russia, Saudi Arabia, South Africa, and United Emirates Arab.

However, the carpet importers from the exempted countries are required to submit the certificate of origin. Other provisions stated that the import duty was an addition to the common duty, in accordance with the applicable international goods trade agreement scheme.