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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 Continues, Textile Entrepreneurs Worried PDF Print E-mail
Written by Maizer   
Monday, 12 October 2020

The textile and textile product (TPT) industry, including those in the upstream sector, such as yarn, still complain about the disturbance of imported products. There is still the issue of policy disharmony so that some industries will be affected.

 

Secretary General of the Indonesian Fiber and Filament Producers Association, Redma Gita Wirawasta, was surprised by the government's steps in determining the import relaxation policy for textile products.

 

"Relaxation is a bit strange. In terms of trade policy, the government is giving relaxation to imports. If the import relaxation is given, what will the producers do? At home, they are still fighting to get the domestic market, when exports are difficult, but the government has relaxed imports. We want the government to guarantee the domestic market for domestic products, "he said.

 

Redma's frustration cannot be separated from a number of policies to relax imports of raw materials that have been carried out in recent years, including the revision of the Regulation of the Minister of Trade (Permendag) No. 85 of 2015 to become Permendag No. 64 of 2017 and most recently the Minister of Trade Regulation no. 77 of 2019. For information, this policy was taken during the previous trade agreement.

 

He considered, with this policy, imported products have the potential to flood Indonesia. In fact, it is judged that domestic producers can still meet demand.

 

"Okay, if the product has not been made, the government may give import relaxation, but I see that some products that we can produce are given import relaxation. This is a burden for us to compete in the midst of a pandemic with cheap imported goods, "said Redma.

 

Redma acknowledged that there is support for the domestic industry from the government. But unfortunately it is not as pronounced today as the decline in gas prices, in fact it is not as beautiful on paper.

 

"There is a minimum charge for consumption. Where now almost everything is below the minimum consumption because it is not fully utilized. This means that the price of gas is 6 dollars per mmbtu but it is subject to a penalty charge, but it is still subject to 9 dollars. Some companies whose utilization above still benefited little. I don't think anyone else (feels), "said Redma.

 

 

 
		
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