The performance of the textile and textile products industry is still under pressure due to difficulties in competing with the invasion of imported products. To encourage the textile industry to rise amid the pandemic, measures to stem the penetration of imported products are being prepared.

The textile and textile product (TPT) industry is one of the sectors most relied on to absorb labor. Based on data from the Central Statistics Agency, which is managed by the Ministry of Industry, from year to year, the labor absorption in this sector continues to increase, even in the midst of the Covid-19 pandemic situation. In 2018, there were 1.7 million workers in the textile sector, increasing to 2.8 million workers in 2019. In 2020, despite being pressured by the pandemic, the labor absorption in the textile sector has actually jumped to 3.9 million people.

Even though it is very reliable in absorbing labor, the growth of the textile sector has actually slumped more and more in the past year. The General Chairperson of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja explained that the small and medium-sized textile industry is currently difficult to survive, both in domestic and global markets.

In the domestic market, they have to compete with cheaper imported products. Meanwhile, the export market is also difficult to penetrate due to competitiveness problems and constraints on logistical activities and supply chain restrictions with partner countries, including the imposition of safeguards by export destination countries.

The growth of the textile industry per quarter I-2021 is the lowest compared to other non-oil and gas processing sectors. This condition is ironic amidst the industrial sector's performance which is growing expansively. Indonesia's manufacturing Purchasing Managers' Index (PMI) was recorded at 54.6 in April 2021, touching its highest record since 2011.

Before the pandemic, the textile sector was growing. In 2017, this sector grew 3.83 percent, increased in 2018 to 8.73 percent, and in 2019 grew to 15.35 percent. However, due to the pandemic, the growth of the textile sector has plummeted to minus 8.88 percent on an annual basis.

During the past year, the growth rate of the textile industry has continued to contract. In the first quarter of 2020, this sector has grown by minus 1.24 percent. In the fourth quarter of 2020, conditions were increasingly depressed to minus 10.49 percent. In the first quarter of 2021, its performance decreased to minus 13.28 percent.

Jemmy estimates that in the second quarter of 2021, the textile and textile products (TPT) sector will still grow negatively.

Secretary General of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) Redma Gita Wirawasta said the performance of the textile industry actually improved in January and February 2021 with utilization of up to 85 percent. At that time, many imported products were held back because of the scarcity of containers or containers.

However, as soon as March 2021 entered, textile imports began to flood again. "Imported goods in the form of fabrics and apparel put a lot of pressure on them at the beginning of the year. Finally, our industry does not enjoy the momentum of rising demand during Eid, because more people are running to imported products, "said Redma.

According to Jemmy and Redma, what is currently needed by Indonesian industry players is certainty of domestic market access. "The export market is actually still not fully recovered, especially some countries are now starting to lockdown again. So, what we can control is the domestic market, and for that we need protective measures from the government, "he said.

Stem imports

The Director of the Textile, Leather and Footwear Industry of the Ministry of Industry, Elis Masitoh, said that the government would immediately take protective steps to encourage the growth of the domestic textile industry, especially the small and medium industries. One of them is through controlling the sales of imported products in the e-commerce market.

This step has been initiated by the e-commerce platform Shopee Indonesia by prohibiting the sale of 13 imported products through their platform. Most of them are Muslim fashion textile products, such as hijab or head scarf, Muslim tops and bottoms, Muslim outwear, batik, and kebaya.

The legal umbrella to control the sale of imported products on e-commerce is being drafted by the Ministry of Trade and will be enforced soon. "We are communicating with other domestic e-commerce platforms to follow this step. We try from all fronts to protect the domestic market, "he said.