The implementation of security measures or safeguards in the garment sector is just one step away. However, the Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad assessed that the implementation of the policy would not automatically boost the performance of the textile industry in the rest of this year.
Previously, the discussion on garment safeguards had entered the final stage and was targeted for release this month.
"I see the effect, but it is still relatively small. It will improve performance in the textile industry, but maybe the increase will not be fast," he said.
However, he said the policy direction was correct. However, in the midst of sluggish domestic purchasing power and economic activity that has not yet fully recovered, the impact on improved performance will not be felt in the short term.
"If there is a recovery in the fourth quarter , it will be relatively slow compared to other products," he said.
On a year-on-year basis, the textile and apparel sector recorded a contraction of 4.54 percent in the second quarter of 2021, while quarter-to-quarter grew 0.43 percent.
Textiles were also the only sector that experienced contraction in the manufacturing industry. Tauhid said the slowdown was also supported by relatively low real sales compared to other product groups such as spare parts, food and beverages, vehicle fuel, household equipment, and so on. "People are now going to tourism places, or doing religious activities, including education, are reduced. So the need for clothing is relatively not high," he said.