The Indonesian Textile Association (API) is currently proposing an extension of security measures or safeguards for several textile products, in line with the slowing down of the Covid-19 pandemic at the beginning of this year. The product is a.l. yarn of synthetic and artificial staple fibres, fabrics, curtains or drapes, inner blinds, bed netting and other furniture articles. Deputy Chairperson of API Anne Patricia Sutanto said the step was taken to maintain the momentum for the recovery of the domestic textile and textile product (TPT) industry in line with the increasing export performance of competing countries.

According to Anne, the domestic textile industry has not fully utilized the first volume of safeguards due to the declining public demand during the pandemic in the last two years.

"Because the last safeguard was at the end of 2019, 2020 and 2021, domestic demand was reduced in practice due to the pandemic, so that API members with a domestic market orientation had not yet experienced the effects of the safeguard," Anne via WhatsApp message, Sunday (27/3/2022).

Anne said the extension of the safeguard would provide space for domestic industries to rejuvenate their machines and production capacity for the next three years while recovering cash flow due to the pandemic since March 2020.

On the other hand, Anne added, her association also focuses on protecting the potential for import surges from competing countries in line with the recovery of export and import activities this year.

“Traditional countries are Indonesia's competitors because their ecosystems are ready and balanced. The Indonesian TPT ecosystem needs to be addressed so that it is balanced and sufficient and we can be more independent and competitive," he said.

The initial safeguards for TPT products will expire on November 8, 2022. Meanwhile, the Indonesian Trade Security Committee (KPPI) of the Ministry of Trade is waiting for reports or requests from industry and business actors regarding the plan to extend the TPT product safeguards at the beginning of this year.

"For the application for a safeguard extension, API is conducting a study with all members regarding the losses that have been felt by API members, an assessment of the safeguard extension to ensure that it is being finalized," he said.

Previously, the Ministry of Finance (Kemenkeu) issued three provisions related to import duties for imports of several types of textiles and textile products (TPT).

The three regulations are PMK No. 54, PMK No. 55, and PMK No. 56/2020. In the regulation, the types of imported TPT goods subject to safeguards are yarn products from synthetic and artificial staple fibers, fabrics, including curtains, inner blinds, bed nets, and other furniture items.

The fiscal authorities reasoned that the imposition of safeguards on the import of TPT was a follow-up to the investigation by the Indonesian Trade Security Committee.

"Research results prove that the domestic industry has suffered serious losses due to a surge in the number of imports of fabric products," the Ministry of Finance wrote, Friday (29/5/2020).