The country’s government will introduce a safeguard tax on ready-made garments imported from China, Vietnam, Singapore and Bangladesh within the next 90 days, Sourcing Journal reports.
The decision, which has been discussed since November, aims to bolster Indonesia’s textile and garment sector in the wake of Covid-19. While this will put an end to the duty-free access China, Vietnam and Singapore currently enjoy, industry leaders in Bangladesh are fighting back against the tax — they say it will further debilitate their local manufacturers that are still reeling from order cancellations by European and American partners.