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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 Industry Asks TPT Import Through PLB Maintained


				
			
			
Industry Asks TPT Import Through PLB Maintained PDF Print E-mail
Written by Maizer   
Wednesday, 26 June 2019

The textile producer asked the government not to rush to remove importing textiles facilities and textile products through a bonded logistics center. The reason, the presence of PLB makes benefit for domestic industries to procure raw materials and semi-finished goods.

 

Chairperson of the Indonesian Textile Association (API) Ade Sudrajat requested that the government not rush to revise TPT import provisions by returning them to border inspection route. He suggested that the government prepare a complete study of the import policy.

 

The presence of import policy through PLB actually has a positive effect on the domestic textile industry, especially in the procurement of raw materials and semi-finished goods. The reason is that the provisions have been proven to reduce the time of importation and provide flexibility for the domestic textile industry to make payments at the time of purchase.

 

According to him, the surge in imports of textiles and finished textile products was caused by too lenient provisions given by the government to importers holding general importer identification numbers (API-U). Moreover, according to him, imports carried out by API-U no longer require recommendations from the Ministry of Industry after the import route is carried out through PLB.

 

"If the location of the problem lies in the loosening of import controls by API-U, then the provisions regarding ÄPI-U will be evaluated. Don't revise everything, "he stressed.

 

Ade added, the surge in imports of finished textiles in Indonesia, in addition to the loosening of import regulations by importers holding API-U, was also caused by the harmonious tariff rules between upstream and downstream industries.

 

He said, since 2011, imports of yarn, especially from polyester, were subject to 40% import duty for anti-dumping (BMAD). This has an impact on the high price of yarn imported by Indonesian producers. Meanwhile, at the same time, the government did not apply a similar policy to cloth commodities.

 

"As a result, the price of imported fabrics is much cheaper. Because exporters from abroad, choose to export fabrics to Indonesia because they are not subject to additional import duties, are different from yarn, "he explained.

 

The Ministry of Trade is ready to revise regulations on the importation of textile products through bonded logistics centers (PLB), because the loose inspection is considered to make the import figures swell.

 

Minister of Trade Enggartiasto Lukita said he agreed with the Ministry of Industry's proposal to evaluate the provisions in the process of importing textile products through PLB. As according to him, the Minister of Trade Regulation (Permendag) No.64 / 2017 concerning the provisions on the Import of Textiles and Textile Products cannot yet be fully implemented.

 

One of the discourses he has floated is returning TPT importation routes through border checks. But according to him, the discourse is not the only solution that will be pursued by the government.

 

 
		
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