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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 9 Textile Factories Closed, Minister of Industry: Imports Are Very High


				
			
			
9 Textile Factories Closed, Minister of Industry: Imports Are Very High PDF Print E-mail
Written by Maizer   
Friday, 22 November 2019

Minister of Industry (Menperin) Airlangga Hartarto admitted there was an important import flow in the upstream product sector of the textile industry. The products released are used by downstream industries such as garments, and the reverse is beneficial, while in the upstream sector, it is the opposite.

 

The Indonesian Textile Association (API) recorded 9 closed factories which were unable to compete with important products in the period 2018-2019.

 

"Imports from textiles then once and imports in the middle, so between upstream then in the middle then downstream. Textile is entering the fabric, the yarn is then printed," said Airlangga, at the Maritime Coordinating Ministry Office.

 

Airlangga is considered by the government to make a safeguard policy or import tariffs on trade security through imported products that are considered to have flooded the domestic market. API has requested permission for protection from the Ministry of Trade's Indonesian Trade Security Committee (KPPI).

 

"We will encourage Safeguard because it is harmonization. One of the government's steps is harmonizing tariffs from upstream to downstream," Airlangga said.

 

In addition, the ministry will boost the revitalization of the textile industry by improving technology through new machines for the textile industry. With this engine revitalization program, Indonesian products are competitive.

 

"We also tried revitalization, most of which lost because the technology did not revitalize machinery for a long time. If the revitalization of machinery is good enough," he said.

 

The TPT industry is indeed an anomaly, there is an asynchronous between upstream and downstream. The downstream industry benefits from cheaper fabric raw materials, to be processed into garment products. While the production results are not absorbed much by downstream industries that are already comfortable with imported raw materials. On the other side of the upstream industry, most are domestic market players, which cannot be done.

 

 
		
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