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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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Indonesia Threatened Difficult to Export Textile Products to India PDF Print E-mail
Written by Maizer   
Friday, 08 November 2019

The export of Indonesian textiles and textile products (TPT) to India is threatened with obstacles because employers in the State of Bollywood are asking for a safeguard import duty (BMTP) policy for a number of TPT.

 

Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (Apsyfi) Redma Gita Entrepreneur said the policy would disrupt the export performance of Indonesia's fiber products. Because, India is one of the main export destination countries for Indonesian fiber products. Artificial staple fiber products are one of Indonesia's flagship export products to India.

 

"Previously, our exports to India for nylon and spin drawn yarn (SDY) products were subject to safeguards. If they charge additional tariffs or add products that are subject to trade barriers, it will certainly affect our export performance, "he said.

 

He said the government could apply the reciprocal principle to India in order to smooth access to exports of Indonesian TPT upstream products. Moreover, India has submitted an application to the Government of Indonesia for the import duty of upstream products and TPT raw materials to be reduced to 0%.

 

Meanwhile, based on data from the Central Statistics Agency (BPS) the largest export of Indonesian textile products to India is obtained from artificial staple fiber products. During January - September 2019, the export value of these products reached US $ 122 million, up 26.74% from the same period last year.

 

On the other hand, Deputy Chairperson of the Indonesian Textile Association (API) Marimutu Maniwaren said exports of Indonesian TPT finished products to India were not too large. For this reason, he considers that if India applies BMTP to finished products from Indonesia, the impact will not be too large for Indonesia's non-oil and gas export performance in general.

 

"Instead we want, our finished products enter India. Because the market in the country is large and cannot be fulfilled by their domestic production. But so far our export of finished products is not too large, the number is how I forgot, "he said.

 

The National Committee for Textiles and Apparel of India urged the country's government to apply safeguards to import fiber, yarn, fabric and apparel. In addition to Indonesia, other countries such as China and Bangladesh became the countries that were allegedly experiencing a surge in textile exports to India, which put domestic industry under pressure.

 

This made the textile business in India ask that the country's government take trade security measures. In addition to experiencing pressure from imports of fiber, yarn, fabric and apparel, India's National Textile and Apparel Committee also complained about the high imports of used clothing from Indonesia, China and Bangladesh.

 

Responding to this, the Trade Security Director of the Ministry of Trade Pradnyawati claimed to be ready to defend Indonesian TPT products that are subject to trade barriers in India. However, he claimed the Indian government had not sent an official notification of the plan to impose safeguards on Indonesian textile products.

 

 "There has been no official notification from India. Maybe at this time only the proposal stage from Indian domestic entrepreneurs to wear safeguards. But basically we will make a defense if needed, "he said.

 

 

 
		
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