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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 Revoke PERMENDAG 64/2017, Save The National TPT Industry


				
			
			
Revoke PERMENDAG 64/2017, Save The National TPT Industry PDF Print E-mail
Written by Maizer   
Monday, 22 July 2019

The Association of Indonesian Textile Experts (IKATSI) urged government to immediately save the national textile industry from a deeper downturn. This was conveyed by the General Chair of IKATSI, Suharno Rusdi, in the inauguration of the IKATSI Central Executive Board for the period 2019-2023 in Jakarta.

 

"IKATSI members spread across the textile industry informed that the utilization of production in the textile industry after this Eid al-Fitr was only 50% on average because the company had difficulty selling its products both in the domestic and export markets," Suharno said. "Even some of them have reduced the number of employees," he added.

 

IKATSI accused PERMENDAG 64 of 2017 of providing access to control without control to API-U holders (traders) through the Bonded Logistics Center (PLB) as the main cause of tcurrent downturn in the textile industry. As a result, during 2018 imports jumped 13.9% (yoy) from USD 8.8 billion to USD 10.02 billion and caused the trade balance to fall by 25.6% (yoy) from USD 4.3 billion to USD 3.2 billion . "Because in PERMENDAG 85 in 2015 previously, those who were allowed to import were producers (API-P) for the benefit of their own raw materials," Suharno said.

 

"This is condition of the worst TPT trade performance in the last 10 years, if the government seriously improves the trade balance, President Jokowi must immediately intervene and save the national textile industry" he said. Because IKATSI suspects several bureaucratic elements also come into play and have an interest in smoothing imported goods into the domestic market.

 

IKATSI proposed that PERMENDAG 64 in 2017 be revoked immediately and returned to PERMENDAG 85 in 2015. Further evaluation needs to be done so that the functions and roles of the PLB are returned as providers of raw materials that cannot be produced domestically, rather than becoming red carpet for imported goods so that industry National TPT is pressed as it is today.

 

IKATSI is very interested in encouraging the improvement of the performance of the national textile industry because it is related to interests of its members. So that his side will continue to urge the government to revise PERMENDAG 64 2017 and the PLB to immediately evaluate the lost and its benefits for the industrial sector.

 

Separately, Secretary General of the Indonesian Filament Fiber and Yarn Producers Association (APSyFI) stated that after Eid al-Fitr demand for fiber and filament yarn continued to weaken. Manufacturers of woven and knitted fabrics which are filament yarn users confirm that they have difficulty selling their products due to the flood of imported fabrics in the domestic market.

 

This condition forced APSyFI members to cut production by 20%. "The yarn manufacturing and fabric production sector also has an average utilization of only 50% -55%," Redma explained.

 

APSyFI regrets that the industrial sector which is a priority in generating foreign exchange and absorbing labor actually shows the opposite performance. Previously, the textile industry had never been in such a bad position.

 

For this reason, Redma wants President Jokowi to intervene and firmly save the textile industry. "The case of Duniatex default is an initial reflection of the current condition of the textile industry, if not immediately rescued, other companies will follow," said Redma.

 
		
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