China`s dumping causes closure of Indonesian textile industry.

The textile industry in Indonesia has been struggling since the onset of Covid-19. Recent statistics reveal that as of June 2024, 21 textile factories have shut down and an additional 31 are on the brink of bankruptcy. To safeguard the local industries, the authorities are planning to impose import tariffs of up to 200% on cheap goods from mainland China.

Not only has the textile industry suffered, but the shoemaking sector has also been significantly impacted by the influx of inexpensive goods from mainland China. This has resulted in a wave of closures, leading to the unemployment of over 10,000 textile factory workers. Many local businesses are eagerly anticipating intensified government efforts to combat illegal smuggling and the operation of illicit factories.