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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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Written by Maizer   
Thursday, 28 November 2019

The Indonesian Association of Textile Experts (IKATSI) states that the government's safeguard policies have been deemed insufficient to save the national textile industry. Because, IKATSI has not seen the Ministry of Industry and the Ministry of Trade move to support what the Ministry of Finance has done, especially in controlling imports through PLB.


IKATSI Chairperson, Suharno Rusdi explained that the main problem of PLB to be the entrance to imports was self-declaration which made rogue importers free to practice under invoicing and under volume. In addition to making the domestic market flooded with imported products, this practice also reduces state revenues in terms of taxes and import duties. "If it is difficult to control, it is better if TPT is only removed from the PLB, there should be no more TPT imports through PLB," said Suharno.


On the other hand, the Ministry of Industry must evaluate the technical recommendations it issues. "What was identified by the Ministry of Finance was only 17 companies, but we indicated there were more than 40 companies of API-P bulging that received import recommendations from the Ministry of Industry, where the bulging APIP only pocketed business licenses but did not have production capacity," Suharno explained.


In fact, he sees that there are several bureaucratic elements in these three ministries who are involved in smoothing rogue importers to import their goods to the domestic market. "There are those who secure from the rules side, there are those who provide recommendations and import permits to the False API-P and API-U IKM fictitious until there are those who secure the expenditure and distribution of goods," explained Suharno. "We ask the Ministers to understand the game of this group of importers and take firm action against unscrupulous bureaucratic protectors of rogue importers who have damaged the textile industry to become like this," he said


While the Association of Indonesian Filament Fiber and Yarn Producers (APSyFI) appreciated the government's efforts in saving the national textile and textile product (TPT) industry. The Secretary General of APSyFI, Redma Gita Wirawasta stated that some of the steps taken by the Ministry of Finance on the direction of the President reflected the government's seriousness in making TPT a priority sector driving national economic development.


"Starting from blocking rogue importers to issuing 161,163 and 163 PMK to enact safeguards of some TPT products that have been produced domestically, and we see the government will continue to work seriously to improve this sector," explained Redma. APSyFI hopes that with concrete action from the government, especially the Ministry of Finance, the Ministry of Industry and the Ministry of Trade to save the national textile industry.


"If the impact of safeguards is not yet felt, because imported fabrics and garments are still in retail warehouses, maybe within the next 2-3 months after the import stocks will run low, local demand will rise," he added. But indeed another thing to note is the Bonded Logistics Center (PLB), which until now is still the entrance to imported textiles.


Secretary of the West Java Indonesian Textile Association (API Jabar), Rizal Tanzil stated that another very important thing to do immediately was the revision of the 2017 Permendag 64 (Permendag 77 2019). Even though Permendag 77 2019, which revised Permendag 64 2017, was signed by Minister Enggar at the end of his term of office, but until now it has not been approved by the Ministry of Law and Human Rights. "Indeed Permendag 77 is problematic, so it is better not to be approved," said Rizal.


Rizal considered that Permendag 77 2019 was more pro-importer and not in accordance with the spirit of the Government in saving the national textile industry. "Article 7 of Minister of Trade Regulation 77 2019 actually legalizes API-P to be able to continue to import with the mechanism of cooperation, this regulation is made to encourage imports," said Rizal.


Then Rizal explained that until now imported goods entering from the PLB were still ongoing. "As long as the import regulations have not been revised with threads, the PLB will continue to be the entrance of imported goods," concluded Rizal.


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