IKM (Small and Medium Industries) players in the textile and textile product sector, especially in the convection or garment sector, screamed about the high price of raw materials, which had risen by 30%.
Secretary General of the Indonesian Small and Medium Industry Entrepreneurs Association (APIKMI), Widia Erlangga explained, the safeguard policy for textile raw materials is felt to make it even more difficult for them in terms of obtaining raw materials for the sustainability of their current business.
He also explained that several types of locally produced fabrics such as Rayon & Cotton, which are used by IKM players in the convection sector in big cities such as Solo and Bandung, have actually increased significantly, ranging from 20% to 30% per yard.
This is because, since the implementation of the safeguard policy for imported textile raw materials, there has been an imbalance in the amount of supply and demand for the types of fabric raw materials. Where previously for this type of raw material, supply was obtained from the production of local and imported manufacturers.
"Now it is only obtained from local manufacturers, where the production capacity of these local manufacturers still cannot meet the needs in the domestic or local market," said Widia.
The safeguard policy for textile raw materials itself is actually one of the ways that the government takes to boost the production of local textile manufacturers which they previously complained about because they feel that the amount of imported textile raw materials entering Indonesia makes their products cannot be maximally absorbed by the market. domestic.
However, it should be within 1.5 years, local fabric producers are expected to increase their production figures. It is not a secret that before the implementation of the safeguard for textile raw materials, the machine capacity of local manufacturers used only reached approximately 50%, and there was still a further 50% remaining production capacity.
"In fact, the production capacity did not show a significant increase, this is unfortunate and it is necessary to confirm to the local producers," he said.
Furthermore, he revealed, there is one interesting point conveyed by Gati Wirawaningsih, director general of IKMA at the Ministry of Industry, regarding the existence of parties who take advantage of the current situation to cause cartel practices. The possibility is very true that there is a raw material cartel, due to a lack of supply of raw materials for the domestic market or the domestic market.
While imported textile raw materials are very difficult to obtain in order to meet domestic needs, this is an opportunity for these parties to increase the price of textile raw materials currently available in the domestic or local market.
"Regarding this matter, it really needs to be traced carefully, who are the parties in question? The parties who can use the loopholes and take advantage of the current situation," explained Widia.
He added that another problem is the matter of capital which is expected to be one of the solutions for IKM players to be able to import machines, and assisted by the government with the remaining 25% financing, 75% of which can be obtained through KUR (People's Business Credit).
According to him, this is only a sweet promise from the government because it is not quite right, because the majority of IKM players have poor credibility so that it is difficult for banks to accept them. One of the factors related to this is the delinquent credit of IKM players after being affected by the impact of the Covid-19 pandemic.
"The government must act quickly, because the safeguard policies taken by the government should not be used as a loophole by a handful of parties who take advantage of the situation. It is also hoped that this can be realized soon, high hopes from IKM players so that the government can evaluate TPT policies so that they can stabilize scarcity. raw materials in the domestic market, "he explained.