The Indonesian Textile Association (API) gave its appreciation to PT Sri Rejeki Isman Tbk (Sritex) for the successful export of textiles in 50 containers worth US$ 3.71 million to 20 countries, Thursday (15/9/2022). According to API General Chair Jemmy Kartiwa, this success is proud, because the Indonesian textile and textile product (ITPT) industry is still in the recovery stage from two years of the Covid-19 pandemic. On that occasion, Jemmy Kartiwa said that the government needs to continuously support the revival of the Indonesian textile industry, which currently supports more than 7.5 million workers, including in the SME and SME sectors.
Currently, the ITPT investment climate is experiencing four major challenges that must be faced by the business world, namely: the first challenge is the energy crisis and inflation. The policy of reducing fuel subsidies and the global energy crisis will increase production and transportation costs for sending textile products, weakening people's purchasing power and the potential for a very large 2023 UMK increase.
The government's efforts to provide protection for workers who work in the textile sector are urgently needed at this time, given that the textile industry is one sector that is able to absorb 7.5 million workers, including small and medium industries from low education circles.
The third challenge is the draft agreement between Indonesia and Bangladesh, known as PTA RI Bangladesh. This is a concern for the textile industry, considering that the draft agreement is like rolling out a red carpet for the entry of Bangladeshi textile products dealing directly with Indonesian TPT.
Predatory pricing will occur and make small industries
medium we will go bankrupt.
The fourth challenge is the problem of increasing import substitution and the use of domestic products. President Jokowi has firmly provided strategic signs, strengthening production absorption, making the textile industry a national priority.
However, currently there is a lot of importation of textile products by non-producer importers and traded through conventional distribution and e-commerce.