Textile Industry Could Lose Potential Income of US $ 3 Billion / Month Impact of PSBB
Written by Maizer   
Saturday, 12 September 2020

The performance of textile industry in the upstream sector is likely to worsen. This time it comes from a large-scale social group (PSBB) policy plan in DKI Jakarta which will be implemented starting September 14 2020.


Secretary General of the Indonesian Association of Fiber and Filament Yarn Producers (APSyFI), Redma Gita Wirawasta, stated that the implementation of the PSBB policy has seriously weakened the textile industry.


Redma said, the production line is expected to run in the middle of the implementation of the total PSBB because it is outside DKI Jakarta. Even so, DKI Jakarta's total PSBB policy will have an impact on the absorption of upstream and downstream textile production. This is because about 30% of the textile production output is absorbed in the Tanah Abang area.


Practically, with a decrease in market absorption, the utilization of the national textile industry is projected to decline.


"Currently, utilization has only increased to around 50%. If the PSBB is carried out again, utilization will fall below 25%, "said Redma


As an illustration, currently the total textile production capacity of APSyFI members is recorded at 840,000 tons for polyester fiber, 830,000 tons for filament yarn, and 800,000 tons for rayon fiber per year. Thus, the estimated Redma projection, installed that is used will only reach a quarter of the area the PSBB criteria will be applied later.


In line with the decline in utilization, the sales volume of textile industry players is also expected to decline.


"The annual turnover of textiles in the country is US $ 35 billion. As of August, we had already lost US $ 15 billion. If there is PSBB again, US $ 3 billion can be lost per month, "added Redma.


Redma did not reveal the specific strategy that textile business actors would undertake to implement the total PSBB in DKI Jakarta.


What is clear, he hopes the government can stop the import of personal protective equipment (PPE), including imported PPE which is sold online. According to the assessment, the sales of local PPE can reduce the impact of economic losses and the textile industry players in the area can be absorbed properly.



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