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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 Textile Entrepreneurs Request Government to Concern About Difficulties in Raw Materials


				
			
			
Textile Entrepreneurs Request Government to Concern About Difficulties in Raw Materials PDF Print E-mail
Written by Maizer   
Friday, 17 May 2019

Textile entrepreneurs who are members of the Indonesian Textile Association (API) claim it is difficult to get raw materials. Even if there is, the price of textile raw materials is considered not competitive.

 

The Secretary General of API, Ernovian G Ismy, said that all this time they had obtained textile raw materials from Small and Medium Industries (IKM). As stipulated in Permendag No. 64 of 2017, the import permit for raw materials is given to traders in this case the IKM is no longer a producer. This means that SMIs are allowed to import raw materials with the condition that they can only take raw material that is not produced domestically.

 

But Ernovian considers this rule not to work. IKM still buys textile raw materials from the hands of importers. This makes the supply chain increase so that the price is more expensive.

 

"Therefore, the government needs to encourage the developers of IKM whose production of textiles and textile products (TPT), needs improvement of domestic fabric producers," he said.

As for Permendag 64 of 2017, the Ministry of Trade initially issued it as a step to control import of bulk textiles, which made it difficult for the IKM to obtain textile raw materials. Then, the Ministry of Trade also tightened the entry process for imported textile materials only through bonded logistics centers (PLB).

 

"So the government must fix the fabric manufacturers, especially the problem of waste to machinery. With this improvement, they can meet the shortages that previously imported can be filled by domestic producers," he said.

 

For this reason, he considers Regulation of the Minister of Trade Regulation 64 of 2017 needs to be implemented. With the ease of obtaining raw materials, downstream textile manufacturers in the country will be increasingly competitive.

 

"Thus, the IKM, especially textile products, will become mainstay to supply needs of the domestic market and then be able to supply foreign markets or exports," he concluded.

 

 

 
		
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