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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 APSyFI: There is a Bottleneck in the Fabric Industry


				
			
			
APSyFI: There is a Bottleneck in the Fabric Industry PDF Print E-mail
Written by Maizer   
Tuesday, 25 June 2019

The Central Statistics Agency (BPS) noted that in January-May 2019, the value of apparel exports not knitted was one of the three sectors that experienced annual growth. During this period, the value of non-knitted apparel exports edged up 1.7% to US $ 1.9 billion.

 

The Indonesian Textile Association (API) said the growth was caused by increasing global demand. In response, the Filament Indonesia Fiber and Yarn Producers Association (APSyFI) stated that the fiber industry is ready to fullfill raw materials from the upstream industry.

 

However, the association considers that the upstream textile and textile products (TPT) production has not been absorbed due to the stagnant absorption in the middle textile industry.

 

Secretary General of APSyFI Redma Wirawasta said that the upstream TPT industry still has a utility level for expansion. Meanwhile, he continued, the quality of domestic yarn factories only reached 75%.

 

"For polyesters and rayon, they are oversupply. We have to export the rest, if we can't export, we will stop some factories, "he explained

 

Redma explained that the high imports of finished fabric caused low absorption of domestic yarn. The association noted that the local textile and textile products (TPT) industry is only able to absorb 50% of total production of the yarn industry.

 

The Secretary General of APSyFI Redma Wirawasta said that the high volume of imported fabrics has caused a bottleneck to absorb yarn production. As a result, investment in the TPT upstream industry has never grown.

 

"On the other hand, China is investing heavily [in the fabric industry]. So, once the imports are opened, the national garment industry is dependent on imported fabrics. The problem is systematic, "he told Business.

 

BPS recorded the value of imports from China rose 29.31% on an annual basis to US $ 18.03 billion in January-May 2019. Meanwhile, the trade balance deficit against China deepened to US $ 8.48 billion from US $ 8.10 billion.

 

 
		
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