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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 The Definitive Origin of Safeguards, Textile Industry Will Grow

The Definitive Origin of Safeguards, Textile Industry Will Grow PDF Print E-mail
Written by Maizer   
Wednesday, 19 February 2020

The textile industry players projected an increase in production and sales will take place throughout 2020 with a figure higher than in 2019. Last year, the textile industry only grew at around 2 percent.


Chairman of the National Management Agency (BPN) of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmadja said there was a growth gap being analyzed by the industry. The reason is, as the industry grows only 2 percent but textile consumption can grow 6 percent.


For this reason, the 4 percent growth gap will be an analysis and in-depth study of the association this year. So far the gap is indeed originating from imported and stealth goods or suddenly there.


As a result, the main driver of industrial growth this year is safeguards which are applied definitively rather than temporarily as is currently happening.


"I think the industry will be better than last year if the government also wants to move fast, the investment interest of entrepreneurs is quite high especially in the rejuvenation of manufacturing machines so there must be certainty of the government. APIs will be more positioned as partners with the government," he said.


Jemmy stated that so far there have been a number of items that have been sorted out by the association in the context of manufacturing production shortages and the needs of today's society. Product items include types of Water Jet with a width of 210 and 280.


According to Jemmy, API has gotten quite comprehensive results, namely the need for about 5-6 million meters per month. Another product, which is the type of Jet Strech that is widely used in Muslim Clothing, here requires consumption needs of between 2-3 million meters per month.


With the results of the mapping of these product types, API also claimed to have submitted to banks so that entrepreneurs who will invest are not complicated.


"So when the data collection is complete we will have a clear basis why one type of product is obtained more from imports, namely because we are short of production or related to the price offered locally is more expensive," he said.


On the other hand, the optimism of the API is also from the utilization of the manufacturer which is felt to be starting to full due to the temporary safeguard being imposed. Jemmy also projected that this year the manufacturer's utilization could increase in the range of 60 percent - 70 percent, from last year which was around 50 percent.


In addition to engine rejuvenation, Jemmy through the API will also seek a number of regulatory improvements that facilitate the industry. This includes mediating with the Minister of Environment and Forestry so that fly ash bottom ash is not included in the B3 or toxic and hazardous waste category.


Jemmy ensured that to push the textile industry forward, strong and strategic efforts from various parties were indeed needed. He will even propose that there is a Directorate General (Dirjen) of Textiles which will overshadow this industrial activity.


"If Pakistan and India already have Ministers of Textiles, so I hope at the Director General level first," said Jemmy.


On the same occasion, Chairperson of the Association of Indonesian Fiber and Yarn Producers and Fibers (APSYFI) Ravi Shankar said that his office would also begin to see a government position that would better support industry players.


According to him the local upstream textile industry must continue to compete with imported raw material products. However, with a variety of strong impetus the opportunity for exports of textile raw materials from Indonesia can also be enlarged.


"Especially with regard to the corona issue at this time, many Chinese manufacturers have not yet begun to support activities," Ravi said.

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