Declining global market conditions have meant that the capacity of textile industry export companies in the country, including DIY, has decreased by at least 50 percent. Meanwhile, exporting countries to Europe and America automatically need a market to dispose of their goods. Previously, there was a wave of layoffs (PHK) in Indonesia since last year, so the local market should be protected. Chairman of the Provincial Management Body (BPP) of the Indonesian Textile Association (API) DIY Iwan Susanto said that the last challenge that was quite influential was the emergence of the TikTok issue in Tanah Abang, making the condition of the textile industry worrying.
In reality, there are a lot of imported used clothes coming in, but only a small portion. In fact, many of them are illegal imports which are allegedly using the TikTok route to enter countries, one of which is Indonesia.
This has its pluses and minuses because in the current condition, TikTok is used as a sales channel for some of our really strong customers. But in the long term, we must really protect the domestic market from attacks by illegal imports. "Frankly, we need maximum support from the Government, because we are really being wiped out," said Iwan in Yogyakarta, Thursday (19/10).
Iwan revealed that people's purchasing power has decreased, exacerbated by attacks from fellow importers. As a result, this condition has made the textile market very chaotic with very few remaining market segments being contested by many textile companies. The point is that this textile company must have a strategy in terms of being able to compete, especially supporting textile SMEs in DIY.
"We have to think about getting up, especially before Eid, so we are still waiting for the moment to move like what? The remaining market is the local or domestic market, even though the purchasing power of consumers is in the lower middle class, but our population is rice and the upper middle segment still has movement, but don't let it fill it. penetration of imported goods, then we will be finished," explained Iwan.
Furthermore, Iwan stated that the government plans to provide incentives and so on to textile companies recently. However, postponing is still waiting for its realization, even though it is already very late because textile entrepreneurs and SMEs are already bleeding.
"Speaking of fabric, there are several main types, namely cotton which is completely imported as raw material, rayon is almost at a standstill due to the onslaught of imports even though in fact our material is strong. Not to mention the trade war that has been going on since the pandemic. China's own textile products are down to 20 percent and are not doing well. With "In this condition, the question is which country should be used as a dumping ground?" said Iwan.
According to Iwan, Indonesia is one of the countries that is a dumping ground, otherwise the condition of the textile industry in the country would not be as bad as this. For this reason, I hope that the government will improve regulations in terms of regulations. On the other hand, illegal textile products have leaked badly. The government is still working on regulations and is very slow. Apart from that, it requires cooperation from all levels to combat it.
"Right now there is a political constellation, we hope there will be a splash. We ourselves can see now that we can't read the current situation. We haven't felt the euphoria of the order for the election until now. Even though usually the demand is already there plus Eid. So like it or not, everyone has to "think defensively and measure everything more efficiently and productively. Plus we are still waiting for the realization of government policies, especially textile incentives," concluded Iwan.
