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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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Import Control Becomes Focus for Saving National TPT Industry PDF Print E-mail
Written by Maizer   
Thursday, 27 August 2020

Important control was the main focus of the speaker in a webinar entitled Saving the National Textile Industry which was organized by the Indonesian Textile Institute (Indotex) this morning (26/8/2020).

 

Vice Chairman of the Indonesian Chamber of Commerce and Industry, Benny Soetrisno, in his opening reminder of the important role of the textile and textile sector (TPT) in the national economy as a labor absorber and foreign exchange earner so that this is still the government's mainstay in the manufacturing sector. Indotex researcher Redma Gita Wirawasta explained that the condition of the textile industry after PSBB was getting worse, where out of a total of 4.5 million direct workers in 2019, currently only less than 50% of them are still working. Redma revealed that the fact that the current textile industry is only sufficient for exports but cannot encourage export growth. "We should have controlled the domestic market, but it was flooded with imports due to trade policies that resulted in imports," said Redma.

 

Redma considers that the policy on importing raw materials that continues to be carried out with the revision of PERMENDAG 85 2015 to PERMENDAG 64 2017 and finally to PERMENDAG 77 2019 is a pro-import policy. "There are already KB and KITE which are good enough to facilitate imports to encourage exports, why did the PLB and Posh Border policies come out again? Excessive import relaxation like this in no way encourages exports, instead it erodes the local product market in the domestic market, "explained Redma.

 

A Port Observer who is also the Chairperson of API DKI Jakarta, Irwandi MA Rajabasa, revealed that the pro-import policy had caused the collapse of the national textile industry. "The practice of illegal importation with the wholesale mode, under invoice, transhipment and others, has put more pressure on the national textile industry," he explained. Irwandi, the supervisory supervision carried out by Customs and Excise could be even better.

 

Another speaker who is a fabric producer in Bandung, Ayi Karyana, confirmed that the textile market conditions in sales centers were filled with imported goods, thus displacing the products they produced. "Customers In the past, I still had nationalism to use local raw materials, but I had to switch to imported raw materials to be able to compete with other producer friends," said Ayi.

 

INDEF's Senior Economist, Faisal Basri stated that industrial TPT was one of the sectors that was badly affected by COVID-19 where its growth was corrected to 2 digits in the 2nd quarter of 2020. The textile sector also still has to meet the challenges of people's purchasing power which is weakening and shifting to other things due to this pandemic condition.

 

During the 3-hour discussion there were also responses from Herus Pambudi (Director General of Customs and Excise of the Ministry of Finance), Doddy Widodo (Director General of KPAII Ministry of Industry), General Chairperson of API (Jemmy Kartiwa), Ravi Shankar (General Chair of APSyFI), Elis Masitoh (Director The Director of Textiles and Footwear of the Ministry of Industry and several other stakeholders from the bureaucracy, businessmen and academics. All responses have the same understanding, that it is necessary to carry out an analysis related to trade policies related to textile importation. However, it is very unfortunate that the absence of a respondent from the Ministry of Trade makes this discussion a less complete.

 
		
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