Import Policy Destroys National TPT Industry
Written by Maizer   
Monday, 09 November 2020

The pro-textile import policy is the culprit for the downturn in the Textile and Textile Product (TPT) industry to date. Secretary General of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), Redma Gita Wirawasta explained that low competitiveness was the cause of the stagnation of textile exports.


But the opening of imported faucets was the main cause of the destruction of the domestic market-oriented textile industry even long before COVID-19.


After the enactment of Permendag 64 2017 which revised MOT 85/2015, textile importation occurred massively because General Importers were given the freedom to import through the Bonded Zone Center (PLB). Even though MOT 85 2015 still leaves a problem in the form of many fake Producers Importers who get large import quotas. Coupled with the issuance of the Minister of Trade Regulation 77 2019 where Producer Importers are allowed to import beyond their capacity, imports are getting even more massive. "These importers are very influential in influencing our trade policies so that 1 fake API-P company can get a very large import quota and is protected by regulations," said Redma.


Redma's accusation is not just a guess, because in the case of illegal importation of textiles in Batam that made 5 suspects including Customs and Excise officials, 2 companies API-P did not get rid of import quota of millions of meters of woven fabrics and thousands of tons of knitted fabrics and even given additional quota .


Redma also denied that the pro-import policy carried out by the government played a role in encouraging industrial growth up to 14% in 2014. “How can you encourage growth if imports increase and exports are stagnant? the trade balance is going down, "said Redma. He revealed that the growth in 2019 was driven by the realization of the rayon manufacturing which did occur in 2018-2019. "So it's not because of the import policy, just look at 2019, many layoffs and textile factories have gone out of business because of floods," he said.


APSyFI cannot stop thinking that currently there are still officials who are still pro-import policy. "The President's orders are clear to import only materials that cannot be produced domestically. The Minister of Industry is also clearly targeting a 35% reduction in imports," he said.


Then Redma questioned the revision of Permendag 77 2019 which was felt to be protracted. "We have discussed this since March, until now it has not been released. The information is already at the Ministry of Law and Human Rights for promulgation," he added. His party hopes that the Ministry of Trade's commitment to return to MOT 85 2015, where importation is only given to producers of raw materials that are not produced domestically and cannot be transferred. "The Ministry of Trade should know that their policies so far have stagnated investment in the textile sector, which people want to invest if their policies are pro-imported goods, given fiscal incentives they will not want to invest, even this import relaxation policy has encouraged producers to become traders," he concluded.

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