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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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Clothing Import Enthusiasts Stabbed The Nation From Behind PDF Print E-mail
Written by Maizer   
Thursday, 26 March 2020

"If we don't have a market anymore, layoffs are not impossible. There will be compulsion from companies to lay off because the market is small," said Redma Gita Wirawasta, Secretary General of the Association of Indonesian Filament Fiber and Yarn Producers (APSYFI).

 

Gita Wirawasta's referred to the shrinking market share of the national textile and textile products industry was not solely due to the Corona pandemic. It has been 1-2 years since the national textile entrepreneurs have shouted complaints about the narrowing of the national textile market. The cause is a flood of imported products.

 

The Director General of Small and Medium Industries at the Ministry of Industry, Gati Wibawaningsih, said last year, most of the goods sold in e-commerce, even 90%, were imported products. Even Blanja.com, e-commerce owned by PT Telkom, which is a BUMN, is working with Alibaba to make it easier for Indonesians to buy finished goods from China and other countries.

 

Last year and previous times, the flood of imported products was also driven by less protective government policies towards the domestic textile industry. Last year, the unit of bags, shoes and garments imported products was reckless because imported goods shipped below 75 US dollars per person per day were free of import duty. There are no import duties and taxes to be paid.

 

This means that every day you buy 2-3 items of shoes, bags, and garments worth a total of 1 million from abroad for you to sell again to the citizens of this nation, online or offline, you are not subject to taxes and import duties. Within a year, your Rp 350 million import transaction is tax and import duty free. If there are 500 people like you, there are Rp 750 billion worth of tax-free imported goods per year. This does not include consumers who buy directly from overseas marketplaces such as Alibaba, Amazon, and the like.

 

Thankfully, at the end of 2019, Sri Mulyani and her staff had begun to convert. There was an attempt to "migrate" from their reckless liberalization alignments. The Ministry of Finance decided to reduce the lower limit of taxable shipments and import duties to 3 US dollars per person per day. This policy takes effect as of January 2020.

 

 
		
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