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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 Continues to Guard the Textile Industry Rescuing Agenda


				
			
			
IKATSI Continues to Guard the Textile Industry Rescuing Agenda PDF Print E-mail
Written by Maizer   
Thursday, 26 September 2019

After meeting with President Jokowi last week, emergency response measures to rescue the national textile industry left a revised agenda for PERMENDAG 64 of 2017 and an evaluation of textiles presence at the Bonded Logistics Center (PLB). The Indonesian Association of Textile Experts (IKATSI) considers that these two agendas still need to be guarded so that the interests of the importers' merchant groups are not interrupted.

 

IKATSI Chairperson, Suharno Rusdi stated that his party still sees the group of importers under t guise of producers actively involved in revising PERMENDAG 64 2017 to protect their import activities. This is also evident from the exclusion of the industry which is currently depressed due to import floods. "This revision is only done by a group that gave birth to PERMENDAG 64, later it will be eleven twelve, revision is only a formality without really being able to improve the condition of the textile industry," said Rusdi.

 

One important thing that must be done by the government is to immediately verify the holders of API-P and API-U who import from 2018-2019. "If the company is proven to violate the rules, it must immediately be blacklisted, both the name of the company and the name of the owner. "Although it is a bit strange, because indications of the holder of the API-P bulging already existed before 2017, but why are they still given import recommendations" Rusdi said

 

Likewise, the PLB evaluation agenda was felt by IKATSI to still be half-hearted. Not only textile PLB, IKATSI also highlighted PLB E-Commerce which became an entry point for apparel sold online. ”HS 61-63 in 2018, imports rose 36% to USD 1.17 billion, semester 1 of this year has reached USD 600 million , IKM garment and convection began to be depressed "he explained.

 

Regarding the safeguard agenda being discussed at the Indonesian Trade Security Committee (KPPI), IKATSI considered that the decision on the amount of safeguards was entirely in the hands of KPPI. He said he was surprised if the Indonesian Textile Association (API) maneuvered to direct the amount of import duties from upstream to downstream only by 2.5% to 20%. He suspects that there is a deposit from the merchant importer group who still wants to perpetuate import activities that have been proven to damage the industry.

 

"For fiber, the MFN (Most Favored Nation) import duty alone is 5%, Yarn 10% -12%, Fabric 20% and Garment 30%, the period instead directs the amount of safeguard below that," he said. "Especially if you use the Free Trade Agreement (FTA) form, it's already 0%, so later it will only be safeguards without additional MFN," he added.

 

He was also suspicious because the proposed concept of API was only in the context of harmonizing upstream and downstream tariffs not in the context of industrial recovery. Whereas safeguard is an instrument of trade remedies taken by a country when the industry is injured due to a surge in imports with the application of additional tariffs so that the industry recovers. "If the industry does not recover it's useless, the name is not safeguard, the name is harmonization of tariffs" said Rusdi.

 

For this reason, IKATSI asked the palace continue to monitor the agenda of saving the TPT industry. "The President has warned of the possibility of a world economic recession and we must minimize its impact on our country, and the textile industry is a safety net to reduce unemployment," he concluded.

 

 
		
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