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APSyFI: The national textile industry is headed for a trade deficit, 2018 exports grow 1% and imports grow 14% (yoy).--IKATSI: The growth of the national textile industry is still hampered by floods of imports, Indonesia needs a clothing security law.


	
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Home arrow Latest News arrow Before Lebaran, Government is Requested to Control Imports


				
			
			
Before Lebaran, Government is Requested to Control Imports PDF Print E-mail
Written by Maizer   
Tuesday, 26 March 2019

The large import composition makes growth of the textile industry slumped and difficult to compete within and outside the country. Data from the Central Statistics Agency (BPS) shows that in the last 10 years export growth was only less than 3% while import growth reached more than 20%.

 

The Chairperson of the Indonesian Textile Experts Association (IKATSI), Suharno Rusdi stated that the textile and textile products (ITPT) industry is currently in a very poor condition where our markets are filled with imported goods at very cheap prices. "If this is allowed to go on, it will seriously endanger the future of national ITPT because we will increasingly depend on imports and ITPT will continue to lose its market," he said.

 

Furthermore Suharno stated that in order to protect domestic market and increase ITPT competitiveness, Indonesia should have a Clothing Resilience Law. This law will regulate not only the import of textile products and the like, but also regulate various incentives and other rules so that the development of the textile industry is carried out sustainably. "The existence of the law is very urgent for the homeland textile industry, IKATSI will fight for this," he added.

 

Separately, the Secretary General of the Filament Indonesia Fiber and Yarn Producers Association stated that it hoped that Lebaran this year would become the momentum of local products to control the domestic market. "Our last momentum was in mid-2017 when Mrs. Sri Mulyani curbed wholesale imports, but the condition only lasted 6 months because the government later released all TPT imports free to enter through the Bonded Logistics Center (PLB)" explained Redma.

 

Redma explained that in the past 5 years the national textile industry has not felt the momentum of Eid, because every eid before thousands of containers containing imported fabrics and garment products enter the domestic market. "So every Lebaran is a lot of entrepreneurs who bite their fingers," he said.

 

Then Redma added that the government must anticipate occurrence of labor problems in May if there are many entrepreneurs who cannot pay their employee allowance (THR). "If you can't sell, we can get money from where you pay THR?" Redma said firmly.

 

For this reason, his side has asked the government, especially the Ministry of Trade, to immediately take steps to control imports. "The Ministry of Trade does not continue to pay attention to the interests of merchant importers, try to pay attention to industrial interests," said Redma.

 

APSyFI has asked President Joko Widodo to immediately intervene because the issue of imports has become the culprit of the trade balance deficit in the last 2 years. " President is always complaining about the trade balance deficit, we ask you  the President  who immediately intervened because actually we already know very well where the problems are," he concluded.

 

 

 
		
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