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Stake Holder : Textile Industry Needs Fundamental Changes

The condition of the domestic textile and textile products (TPT) industry is increasingly critical to this day. Chairman of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmadja said the textile industry utilization had fallen by an average of only around 55 percent since March 2021.

The purchasing power of the people who have not been normal due to the Covid-19 pandemic and the massive sales of imported goods in the domestic market have put pressure on the local textile industry.

Jemmy said this condition would continue without any policy support from the government. He said the textile industry would continue to be under pressure in critical conditions until 2021.

According to him, if the rush of imported goods continues, the small and medium industries (IKM) will be hit even more. “We think it's time for the government to control imports. We want fair trade," said Jemmy at a press conference for the Indonesian Textile Association (API) and the Indonesian Filament Fiber and Yarn Producers Association (APSyFI).

Therefore, Jemmy asked the government to immediately apply import duties on trade security measures (BMTP) or apparel safeguards. He believes that the application of this safeguard is the right step to save textile SMEs.

“Our goal in applying for safeguards is to protect SMEs throughout Indonesia. This safeguard can also encourage production activation in IKM so that it can boost the performance of the entire value chain upstream," he said.

As the results of the investigation by the Indonesian Trade Security Committee (KPPI) which has proven that the rush of imported goods has caused serious losses for domestic apparel producers, most of whom are IKM.

Jemmy said that regarding the rejection from retailers on the implementation of this safeguard, he believed that the government could see a bigger interest. According to him, the Indonesian people, especially the lower class, currently need more jobs to survive.

"The application of safeguards is an effort to save four million workers in IKM and MSMEs. As well as three million workers in large industries as suppliers of raw materials which also stimulate other economic activities in the country, including workers in the retail sector," he said.

Meanwhile, Secretary General of the Indonesian Filament Fiber and Yarn Producers Association (APSyFI) Redma Gita Wiraswasta said that the garment safeguard proposal is currently going through stages at the Ministry of Finance.

If approved, this policy will be stipulated through a Ministry of Finance Regulation (PMK) regarding the imposition of security measures import duties (BMTP) on imports of clothing products and clothing accessories.

“We ask the Ministry of Finance to immediately issue this PMK safeguard, because the condition is getting worse. After the safeguards are implemented, we will make improvements in the textile industry to increase competitiveness," said Redma on the same occasion. As for,

Chairman of the Bandung Convection Entrepreneurs Association (IPKB) Nandi Herdiaman said the current condition was very bad. Many cannot produce, even if there are goods, their prices cannot compete with imported products circulating in the market.

“I beg of you, that the local market be given to small industries. Currently it is really down, about 40% of textile IKM players have sold their machines because there is no income, "said Nandi.