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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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Massive Textile Importation, This Must Be Realized by the Community PDF Print E-mail
Written by Maizer   
Wednesday, 15 January 2020

Based on data from the Central Statistics Agency for the past three years (2016-2018), the volume of fabric imports has continued to increase with a trend of 31.80 percent. Starting in 2016-2018, imports of cloth were recorded at 238,219 tons, then in 2017 amounted to 291,915 tons, and soared up in 2018 by 413,813.

 

The countries of origin of imports are from China, South Korea, Hong Kong and Taiwan. From the data above, the largest volume of fabric imports came from China which reached 67.86 percent in 2018.

 

Then what is the effect on the economy?

 

Basically, imports occur because of specialization. One country may produce better or at a lower cost than another country. Like in Indonesia, because of its geographical location, palm oil is one of the largest export commodities in Indonesia. While other countries that are less able to produce palm oil will import palm oil from Indonesia.

 

However, if a country imports goods on a large scale even though the country itself can produce them with the same good quality, this will have an impact on various things. The most visible is the impact on the trade balance. The trade balance is the difference between exports and imports.

 

If a country imports high enough but can only export a little, it will create a small trade balance or even a deficit. Especially if a country has experienced a trade balance deficit, the increase in imports will continually worsen a country's economic situation because the country will be very dependent on other countries.

 

In addition to its effect on the trade balance, high imports of textiles and textile products make domestic products less desirable and lose competitiveness. If this situation continues, the production of domestic products will decrease, workers will lose their jobs, and domestic industries will go bankrupt and close down.

 

What should the community do?

 

As people who care about their country, we must participate in reducing imports of textiles and textile products. The simple thing we can do is reduce buying imported products and start using domestic products. This simple thing if done by many people will make a good impact on the domestic industry. They will be given the opportunity to continue to develop their products so that one day they will truly compete with imported products. Let's love domestic products

 

 
		
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