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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 Textile Association: Temporary Import Duty is Too Small


				
			
			
Textile Association: Temporary Import Duty is Too Small PDF Print E-mail
Written by Maizer   
Monday, 11 November 2019

Secretary General of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta rate, the temporary import duty of Rp 1,405 per kilogram imposed on imports of yarn products is still too small. In the calculation, it takes three times the amount needed to be able to recover the textile and textile product (TPT) industries which are considered to be currently in 'sick' condition.

 

Redma said, the amount of temporary import duty determined by the government at present is only one fifth of the average price of imported threads, which is Rp 30 thousand to Rp 35 thousand per kilogram.

 

It is known, the government through the Ministry of Finance officially released three technical regulations regarding the implementation of the Temporary Safeguard Measures Import Duty (BMTPS) policy for several types of imported goods. One of them is the import of yarn products (other than sewing thread) from synthetic and artificial staple fibers. These three regulations were released simultaneously on Tuesday (11/5) and began to be implemented on Saturday (9/11).

 

Redma said, the amount of safeguards was usually calculated by the Indonesian Trade Security Committee of the Ministry of Trade (KPPI Ministry of Trade) based on the percent difference between import prices and local product prices. Then, plus the percentage for industrial recovery.

 

"In our calculations, a minimum of Rp 5,000 per kilogram," he said.

 

But, Redma acknowledged, the application of the import duty of temporary security measures (BMTPS) is only valid as a short-term safeguard of 200 days. This means that the industry still has hopes for the government to apply higher import duties to the fixed import duties later.

 

At present, Redma explained, the Ministry of Trade's KPPI is under investigation based on the data already entered. The data included showing the amount of industrial losses. Later, the KPPI will set a fixed import duty that will be valid for up to three years.

 

While waiting for the fixed import duty policy, Redma said, the industry could now only surrender and hoped that the government could set an import duty capable of restoring the TPT industry. "We can't do anything, just pray that this regulation can actually reduce imports," he said.

 

The application of BMTPS is enforced through PMK Number 161 Year 2019 concerning Imposition of BMTPS Against Imports of Yarn Products (Other Than Sewing Thread) from Synthetic and Artificial Staple Fibers. In addition to yarn, BMTPS is also imposed on fabric products through PMK regulation No. 162 of 2019 concerning Imposition of BMTPS on Imports of Fabric Products. Finally, PMK No. 163 of 2019 concerning the Imposition of BMTPS on the Importation of Curtain Products (including Curtains), Inner Sunshade, Bed Nets and Other Furnishings.

 

Chairperson of the Indonesian Textile Association (API) Ade Sudrajat said, the industry had a major task within 200 days of the implementation of the BMTPS. Namely, convincing the government that there will be no damage and even closure of the industry with the safeguard.

 

"That way, we show, we need further protection in the form of permanent safeguards or three years," he said.

 

Ade admitted, a period of 200 days was not a long and effective time to restrain the import of TPT. But, the industry will not stand idly by either. He hopes the industry can still use it to the fullest. Especially by restructuring machinery.

 

The effort was made so that the industry can be efficient and have an equal or even higher competitiveness compared to foreign products when BMTPS is revoked. "If we don't change our behavior, machinery management, we will still be losers," Ade said.

 
		
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