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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 IKATSI: Protection Careful Catch a Cold


				
			
			
IKATSI: Protection Careful Catch a Cold PDF Print E-mail
Written by Maizer   
Friday, 13 September 2019

The Indonesian Association of Textile Experts (IKATSI) sees the interference of importing traders to castrate protection efforts that will be carried out by government in the context of saving  national textile and textile product (TPT) industry. Chairman of IKATSi Suharno Rusdi said that the imposition of protection will be very important for TPT industry to restore its health in the next 3 years after increasing for 10 years so it cannot be developed.

 

However, the steps agreed upon by all national textile stakeholders, including the government, do not necessarily ensure that sector is healthy again. Because the protection measures currently proposed from upstream to downstream with a range of 2.5% to 30% will not support much and help the textile industry to regain health.

 

"The price difference between local fabrics and important fabrics at the consumer level is currently only an average of 15% to 20%, at the retail level around 30% -40%, but original price in theimporter warehouse is 60% because we see dumping practices, below invoice until below states the volume "explained Rusdi.

 

80%, yarn 60% and garment above 100%. "Or you can also use the value per unit volume, for example for fabric USD 5 per kg, so it will be fairer for special products whose price per kg can reach USD 15-20 but for products that are carried out under an invoice of IDR 5 per kg "He explained.

 

IKATSI remind all stakeholders to oversee this policy step so that it does not catch a cold like the previous policies. "This group of merchant importers continues to talk so that the necessary security as small as possible so that they can continue to be important," he said. "It's useless to apply safeguards if it can't block imports," he stressed.

 

 

Stop Importing Temporarily

 

Related to the current TPT industry condition which is increasingly depressed by imported products, IKATSI reminds the government to immediately take measures to prevent temporary imports by not giving import permits and issued TPT namely HS 50-63 from the Central Logistics Center (PLB) including PLB e-commerce , Textile PLB, PLB IKM and other thematic PLBs. "We need the red and white soul of the Ministry of Trade, the Ministry of Industry and Customs for this step," Rusdi said.

 

IKATSI states that the Government does not need to worry that this step will reduce exports because the government has provided facilities through Bonded Zone (KB) and the Ease of Importation of Export Purposes (KITE) which ensure imported raw materials for import purposes can be accessed easily. "So the current performance of garment exports has no correlation with PLB," he stressed.

 

IKATSI determines that PLB is currently the gateway for important products to erode the local market. "The presence of PLB e-commerce is clearly hurting garment SMI producers and small convection, very cheap important goods are sold directly online," said Rusdi.

 

By temporarily canceling imports, local producers' stocks can be sold faster so that they can reactivate their production lines and re-employ employees who are currently laid off. IKATSI estimates that spending for one month can increase foreign exchange by around USD 800 million without involving the increase in exports. "Stop importing for 3 months, the government can save USD 2.4 billion, this amount can easily help so that trade this year is not deficit," he concluded.

 

 
		
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