Govt Protects Cosmetics Industry with Safeguard Policy

  • 24 Jul 2026 16:35 WIB
  •  Voice of Indonesia
Key Points
  • Indonesia’s Ministry of Trade, through the KPPI, is moving to implement Trade Safeguard Measures (TSMs) and potential Safeguard Import Duties (BMTP) to protect the domestic cosmetics industry from surges in low-priced imports.
  • Business leaders and government officials emphasize that these measures provide essential "breathing room" and legal certainty, allowing local manufacturers to adapt, recover from losses, and improve global competitiveness.

RRI.CO.ID, Jakarta –The Indonesian government, through the Ministry of Trade, is ready to implement a trade safeguard policy to protect the national cosmetics industry from the pressure of surging imported products. This strategic move has drawn the attention of the global market as Indonesia works to maintain the competitiveness of its domestic market amid growing uncertainties in international trade flows.

This protective measure, which complies with World Trade Organization (WTO) standards, is designed to provide local producers with room to adapt. Through this scheme, the domestic industry is expected to have sufficient time to recover its business performance and prevent serious losses caused by an influx of low-priced foreign products.

The Chair of the Indonesian Trade Safeguard Committee (KPPI), Julia Gustaria Silalahi, explained the critical role of this safeguard measure in ensuring the survival of domestic businesses. “Trade Safeguard Measures (TSMs) provide ‘breathing room’ and time for the domestic industry to recover from serious losses or prevent serious losses resulting from a surge in imports of similar goods or those that directly compete with domestic industrial production during a specific period,” Julia said at an event to raise awareness about Trade Safeguard Measures for Cosmetic Products held in Jakarta on Wednesday, July 22, 2026.

The current flood of imported personal care products is putting immense pressure on the operational efficiency and supply chains of the national cosmetics industry. To address this situation, the KPPI is authorized to conduct a comprehensive investigation to assess the threat of serious injury before recommending the imposition of Safeguard Import Duties (BMTP).

Julia explained the mechanisms and core responsibilities of the KPPI in executing its investigative functions regarding incoming goods. “The KPPI is tasked with investigating allegations of serious injury or the threat of serious injury suffered by the domestic industry due to a surge in imports of similar goods or goods that are in direct competition. If proven, KPPI will submit a recommendation to the government to impose Safeguard Import Duties (BMTP),” she said.

This trade protection policy has been positively received by business operators, who view it as capable of providing legal certainty and a conducive business environment. Triani Arianti, a representative of PT Mandom Indonesia Tbk., noted that the KPPI’s involvement is exceptionally helpful to the local manufacturing sector in facing import competition.

“The KPPI’s presence is very helpful to business operators, especially regarding protection from the harmful effects of imports on domestic interests. Hopefully, in the future, the domestic cosmetics industry can develop even further,” she said.

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