The Export-Import Association (IEI) noted that there were a number of regulations as well as several technical regulations that hindered the export rate of the domestic textile and textile product (TPT) industry. In fact, the export performance of textile products has returned to life. This is of course inversely proportional to President Joko Widodo's focus on continuously boosting exports to restore the national economy, after being hit by the Covid-19 pandemic. General Chairperson of IEI Amalia Hasanah said that the export movement which had begun to revive was actually tainted by various regulations that made the national industry even more awry.
"The current condition of our industry is going awry, such as torn clothes being investigated. Regulation after regulation, fee after fee, even though we pay for everything," Amalia said, Tuesday (14/12).
He also revealed several obstacles that hinder national exports, among others, the scarcity of containers, ship delays, uncontrolled export rates, to the difficulty of raw materials.
Besides that, continued Amalia, the Regulation of the Minister of Trade (Permendag) Number 20 of 2021 concerning Import Policies and Regulations which came into force on November 15, 2021, also leaves its own problems for exporters and importers.
The regulation explains that imported raw materials for production requiring PI must wait for the results of the VKI (Industrial Capability Verification).
But in fact, explained Amalia, the VKI system is not yet fully used.
"The system is not running yet. The normal process of PI has already taken 1 month, especially now?," he explained.
"What is clear is that the impact is many, on the one hand exports are rising but regulations do not support it," added Amalia.
Furthermore, he said that these problems had been conveyed through the relevant parties. However, until now there has been no follow-up that makes exporters and importers breathe a sigh of relief.
"We also help IEI members to resolve the case if there is a case by case, although it can't be completed completely due to other problems. We think the Ministry seems to be busy making their own regulations," said Amalia.
Therefore, he hopes that the import approval permit that is subject to the trade system for raw materials (not only for TPT) so that there is certainty of processing time.
"Don't take it too long for 1 (one) month, but the longest it should be with a system that is completely online like now, it can take 3 (three) days for a decision to be made," he said.
In addition, he also hopes that the relevant Ministries/Agencies can work hand in hand and synergize for the smooth flow of raw materials.
"There needs to be support from all sectors from the Ministry of Trade regarding the regulations, the Ministry of Industry as the coach of the industry and the Ministry of Finance through Customs and Excise which guards the entrance for the smooth flow of raw materials, which is currently being actively pursued," explained Amalia.
Amalia also hopes that the government will pro-actively communicate with export destination countries in order to overcome the problem of container availability and monitoring of freight that is currently out of control.
"The discussion of G to G is very necessary, even though the shipping line is B to B," he said.
"Hopefully the government will not close its eyes and ears to the current conditions. Don't just go to the table, but go out into the field to see the actual condition of the business people," hoped Amalia.