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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 13 Points from the Indonesian Textile Industry to the President


				
			
			
13 Points from the Indonesian Textile Industry to the President PDF Print E-mail
Written by Maizer   
Wednesday, 18 September 2019

The condition of the national textile industry which is facing severe challenges has pushed the Indonesian Textile Association (API) to raise the issue with President Joko Widodo (Jokowi). Moreover, the latest case in this sector is related to failure to pay one of the biggest textile players in Indonesia, Duniatex Group.

 

Besides Duniatex, the old disease about the invasion of imported goods is also still an industrial problem which is often called "sunset". Not only that, the Indonesia Stock Exchange (BEI) data also revealed that foreign capital outflows were still coming out year to date from textile listed companies.

 

At least, in the Minutes of the Meeting, there were 13 points submitted by API to get a response from President Jokowi.

 

First, industrial efforts to increase the competitiveness of TPT (textiles and textile products) resulting in an increase in exports and a decline in imports.

 

Secondly, what was conveyed to the Head of State was that there was a hope for a revision of Law No. 13 of 2013 concerning Manpower. The revision was mainly carried out on several articles which were very burdensome to the National TPT industry and weakened national clothing security.

 

Third, trade agreements with importing countries to increase the ability to penetrate Indonesian products in the export market.

 

Fourth, simplification of taxation rules. API requests that the Value Added Tax (VAT) is only collected on the final product, so that the delivery of goods and services from upstream to downstream does not need to be subject to VAT.

 

Fifth, API conveys investment experience in Ethiopia and India. Investing in the two countries, investors get various incentives and speed of service in obtaining the required permits.

 

Sixth, API hopes that energy costs in Indonesia, both electricity and gas, either through relief or other schemes.

 

Seventh, market players also hope that industrial estates in Central Java, East Java and West Java will be directly brought under the control of the President so that the speed of the construction of Indonesian textile factories and ecosystems can occur in a short time and national clothing security can be maintained.

 

Eighth, the association also felt the need for intensive attention and focus on the TPT sector so that it was proposed that an echelon 1 official (Director General) specifically handles the TIT industry at the Ministry of Industry, the Ministry of Trade, and the Ministry of Manpower.

 

Ninth, API sees a huge market opportunity at home and abroad in achieving this sector acceleration, so we need President's consideration if the Act on Clothing is required.

 

Tenth, it is necessary to revise Permendag 64/2017 and Permendag 18/2019 which are in the process of being expected to be accelerated and fully supported by the President.

 

Eleventh, it is necessary to accelerate the revision of the Environmental Candy (LH) which makes the TPT industry heavier because waste water management is heavier than other sector industries.

 

Twelfth, the API supports better vocational education policies. However, high-level vocational education also needs attention from the government so that qualified workers do not only exist at the operator level.

 

Thirteenth, the TPT industry is ready to cooperate with MSME companies so that it can run synergistically between large industries and small and medium industries. The TPT industry is also ready to support Indonesian brand owners, retailers, and designers in developing fast fashion and modest wear in Indonesia.

 

 
		
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