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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 Sufficient Textile Industry Raw Materials

Sufficient Textile Industry Raw Materials PDF Print E-mail
Written by Maizer   
Tuesday, 30 July 2019

The Bonded Logistics Center (PLB) as part of the government's economic policy package is still a mainstay for small industries to get raw materials cheaply, easily, and quickly.


The survey results related to the effect of the smooth production before and after the PLB conducted by the Indonesian Small and Medium Industry Entrepreneurs Association (APIKMI) against SMEs in West Java stated that there was a decrease in raw material costs by an average of 11% from IDR 15,500 to Rp. 13,750.


In addition, after the availability PLB of raw materials is sufficient. Another impact is also on the addition of labor, where adequate raw materials will open new production units so as to increase employment, and provide an economic impact in the form of small convection businesses, the emergence of boarding houses, and food stalls around the PLB. For the record, currently textile imports through PLB are carried out by producer companies or SMIs at 2.7% of total national textile imports.


This was revealed at a plenary meeting held by Customs, the Ministry of Trade, the Ministry of Industry and various members of the association. In addition, the results of the survey were also supported by statements from convection entrepreneurs operating in the Soreang area, Bandung Regency, which expressed their gratitude to the Customs Office of West Java for the existence of the PLB. "Previously we had difficulty finding raw materials. After the PLB can now more easily find raw materials. Business in the field of convection continues to follow a constantly changing mode. If you only rely on raw materials in the domestic market, it is not enough, "he said.


Based on the latest data from a total of 97 PLB, 90 percent are PLB supporting industries so that the goods entered are for industrial raw materials. The rest of them are PLB air cargo hubs, PLB floating storage, and PLB staple materials.


Director General of Customs and Excise Heru Pambudi stressed that the PLB was not a place to store and trade garments. "There is no garment that is piled up on the PLB, so there is no such thing, for example, someone can buy a jacket directly at the PLB," Heru said.


At present the Import Duty and Tax Receipt in the Framework of Imports from the PLB shows an increasing trend. In total, since the establishment of the PLB until July 2019, the receipt of import duties reached Rp1.57 trillion and taxes in the framework of imports reached Rp7.48 trillion.


Responding to the growing issue that the PLB was one of the main causes of the flood of textile imports that caused the sluggish domestic textile industry, Chairman of the Indonesian Logistics Association (ALI) Zaldy Ilham Masita stated, "I think it is unfair to say that the PLB caused the textile industry to become sluggish , "Zaldy said. "In fact, the PLB is a form of government attention for the textile industry, including the IKM, in bringing raw material supplies closer and increasing the efficiency of logistics costs," Zaldy added.


The Chairman of the Indonesian Bonded Logistics Center Employers Association (PPLBI), Ety Puspitasari, when contacted on Friday (7/26/2019), also stated that the PLB supported the national textile and textile products industry as one of the government's main strategic industries. "Currently the PLB is in accordance with one of its objectives, which is to bring industrial raw materials closer to the IKM, and it is proven by the goods entering PLB that most of them are industrial raw materials and non-finished goods are ready to sell to the domestic market," said Ety.


"So it's not true if someone says that in the PLB we can buy handkerchiefs in retail like in a grocery store," he added.


Of the total 48 PPLBI members and the total PLB operators currently most PLBs are classified as large industrial PLBs and only one PLB of finished goods is for the needs of the alcoholic beverage industry. Whereas for the PLB e-commerce industry that is registered as a new PLB operator one company and has not made an import transaction to date. So, according to Ety, it is not true about the issue of the flood of textile products currently available due to the PLB.


As a government partner as well as other industry associations, PPLBI continues to strive to support growth of the domestic industry and realize Indonesia as an Asia Pacific Hub and we are very open and welcomed if there are parties who might be hesitant about the PLB process. "If necessary, we can conduct a field review together or even discuss directly with the PLB business people." Closed Ety



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