The Coordinating Minister for the Economy Airlangga Hartarto confirmed that the projected development of the textile and clothing industry will be even more positive in the future. This optimism is driven by forecasts of demand that will continue to increase as this has become a way of life. However, to increase the export capacity of textile and apparel production from Indonesia, for example to the American and European markets, trade barriers such as high import duties must be reduced. This was stated by the Coordinating Minister for the Economy Airlangga Hartarto, quoted on Tuesday (11/7/2023).

Airlangga revealed that Indonesian textiles were subject to import duties of between 12-15% in the European Union and the United States (US).

"And this is not imposed on countries like Bangladesh or Vietnam," said Airlangga.

If this trade barrier can be reduced, Airlangga is sure that Indonesia's exports can increase. Therefore, Indonesia will concentrate on finalizing the Economic Partnership Agreement with the European Union.

Apart from that, we also have to look at other competitive advantages that Indonesia can optimize, for example from the financing sector, the workforce climate, to the availability and depth of the structure of raw materials.

"Indonesia is concentrating on finalizing the EU-CEPA so it is hoped that the market will be more open. In IPEF, the first pillar also discusses trade facilitation. The government hopes that barriers in these countries can be reduced," said Coordinating Minister Airlangga.

As is known, many textile industries in the country are out of business. According to the Indonesian Textile Association (API), throughout 2022, it was recorded that there were approximately 87,000 workers in the national textile sector, upstream to downstream, who were laid off.