The textile and textile product (TPT) industry proposed trade safeguards for 45 Harmonized System (HS) numbers for textile products as an effort to save the domestic TPT sector from imports. It is hoped that the implementation of this safeguard will stem the circulation of 10-15% of imported TPT products in the domestic market. "We have submitted safeguards for 5 HS of yarn and around 30-40 HS of imported fabrics from several countries such as Vietnam, India, Thailand and Malaysia. It can suppress 10-15% of imported products, even though most of it is illegal. But this is not bad, because we are looking for many ways to reduce imports," said Chairman of the Indonesian Filament Fiber and Yarn Association (APSyFi) Redma Gita Wirawasta to Investor Daily in Jakarta, recently.

Redma said the types of products proposed to be subject to the safeguards had high import values and burdened Indonesia's trade balance. In fact, these products can already be produced by the local TPT industry.

"Indeed, imports are high. That's the HS that is widely used by the public, so the products that we usually consume every day, there are woven fabrics, t-shirts, and others. And everything can be produced domestically.

According to Redma, the textile industry has submitted proposals for the 45 HS number safeguards to the government. "The proposal for this safeguard is already on Mrs. Sri Mulyani's desk. It has been recommended by the minister of commerce since a few months ago.

    He revealed that the safeguard proposal had been discussed among departments, including the Ministry of Industry, the Indonesian Trade Security Committee (KPPI). And there has been a recommendation and it has been brought to a meeting of Bappenas, BKPM, Ministry of Industry, Ministry of Trade, all have agreed and received recommendations. Now it is on the desk of the Minister of Finance," he said.

Apart from submitting safeguards, said Redma, the industry also hopes that Customs and Excise's performance will be improved to stem the entry of illegally imported TPT products. "Because if the 45 HS numbers are closed using safeguards but the illegality is still running, it's the same. There are still 85% of imported TPT products that can penetrate into the country," he said.

The large number of imported products in the domestic market forced the local textile industry to lay off tens of thousands of employees. Throughout the first quarter of 2023, the domestic textile industry was recorded as having laid off around 20 thousand employees due to the onslaught of imported products and sluggish export demand.

"At the end of last year, the number of employees who were laid off had reached 100 thousand people, and until last March it had increased again to around 120 thousand people. There is a possibility that there will be more layoffs until the end of the year," said Redma.

In this regard, the Ministry of Industry (Kemenprin) is conducting an inventory of companies or industries in Indonesia that are threatened with bankruptcy due to the sluggish global economy. "From the beginning we have identified what is called the TPT sector in our export market. So it has been hit for a long time," said the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita, recently.

He admitted, the Ministry of Industry had recorded textile factories that were in danger of going out of business or closing due to the impact of the global economic downturn. "We will certainly have a limited meeting (limited meeting), and that is one of the efforts to suppress imports so that the industry can also return to normal," said the Minister of Industry.

Tangerang Regent Ahmed Zaki Iskandar said the district government (pemkab) will try to handle the wave of layoffs of thousands of textile workers by protecting the fulfillment of workers' rights according to the provisions. "Especially getting THR (Tunjangan Hari Raya) and severance pay that has been agreed with the union," he said as reported by Antara.

Apart from that, continued Zaki, his party will prepare a number of solutions by providing new job placements in companies or industries in Tangerang Regency. "In fact, the guarantee of fulfilling workers' rights has been discussed with the Ministry of Manpower, the Ministry of Industry, and related companies," said Zaki.