The textile and textile products (TPT) industry claims to be in an anxious state right now. This is because upstream utilization is observed to be sloping to the level of 40 percent and downstream which is also almost at the same level of 40-65 percent.
As a result, this industry is considered not a contributor to the Indonesian Manufacturing Purchasing Managers' Index (PMI) which was able to break the 54.6 level for the last April 2021 period.
"I think PMI is very high, not from textiles, maybe from pharmaceuticals, food and beverages, or automotive," said the Secretary General of the Indonesian Textile Association (API) Rizal Tanzil Rakhman.
Rizal said that the current condition of the textile industry is hoping to be anxious considering that the recorded increase in public consumption is expected to actually purchase domestic products.
If not, it will be useless to increase textile consumption but it will not encourage the industry to grow. Especially in the first quarter of 2021, Rizal only hopes that the industry will start enjoying growth at the level of 1-2 percent.
"Tanah Abang was already busy yesterday, I went to IKM Soreang as well as a lot of online sales which were said to have started to increase, then for sarongs whose brands have also been used 100 percent. So overall I still hope people buy domestic products," said Rizal.
On the other hand, Rizal is also still waiting for the implementation of the garment safeguard, which reportedly will be released after Lebaran. If true, it is claimed that it will greatly assist the industry in catching up with performance starting in the second quarter of 2021.
The Ministry of Industry had previously proposed a varied safeguard tariff for garment products with a tariff to provide more certainty than just a percentage.
Director of the Textile, Leather and Footwear Industry of the Ministry of Industry, Elis Masitoh, followed up on a number of suggestions for casual tops, such as t-shirts, a proposed tariff of Rp. 27,000, jackets Rp. 63,000, outer Rp. 79,000, hijab of Rp. 19,800, and for robes. amounting to Rp59,000.