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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 Protect Domestic Market, Textile Association Asks for Safeguard


				
			
			
Protect Domestic Market, Textile Association Asks for Safeguard PDF Print E-mail
Written by Maizer   
Thursday, 30 April 2020

The Indonesian Textile Association (API) hopes to protect the domestic market. That way, when the Covid-19 outbreak in the country has been completed, the Textile and Textile Products (TPT) industry in the country can bounce back.

 

"At present, garments in Bangladesh, India and Vietnam, on average, stop production. So when the normal garment conditions are in, they can enter Indonesia if Indonesia does not take protection," said API Chairperson Jemmy Kartiwa Sastraatmaja.

 

He said the association had conveyed the matter to the Ministry of Industry (Kemenperin) and the Ministry of Trade (Ministry of Trade). With hope, when the domestic economy has been stretched, imported goods will not easily enter Indonesia.

 

"Then (the domestic TPT industry) which was export-oriented could sell locally. If the local market is not protected, TPT can be difficult to rise, while cash flow is almost exhausted and must pay employees and other salaries," said Jemmy. He hopes that the government can implement garment safeguards.

 

API Deputy Chairperson Chandra Setiawan added, the application of safeguards or anti-dumping was permitted by the World Trade Organization (WTO). During this time, he said, many domestic rules prioritize imports.

 

"We already have a bonded zone, a bonded logistics center, so our imports are facilitated a lot. It's just that the policy on the use of domestic products does not yet exist, for example the tax is cheaper," he explained.

 

Chandra revealed, the cost of renting apparel sales at the mall is cheaper for foreign brands, compared to domestic products. "The cost of leasing domestic brands is more expensive. So there is a lot of synchronization," he said.

 

He continued, before the corona outbreak entered Indonesia, the utilization of the textile industry was already very low. Because many are violating textile imports.

 

"So now that there is corona, we hope that the domestic industry can be independent, because domestic textile raw materials require a long process. From petrochemicals, yarns, fabrics, then dyeing, then made into garments this is quite long," Chandra said.

 

So according to him, if the import of raw materials is facilitated, the textile industry to the yarn producers will continue to be affected. "In a pandemic condition, the domestic industry must be our main focus," he said.

 

 

 
		
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