In the first half of this year, it is believed that the textile and textile product (TPT) industry will continue its expansion which has started since the fourth quarter of 2021. The Ministry of Industry projects that the textile industry will grow 3.5 percent in the first semester of 2022, driven by the Idul Fitri momentum and the opening of homecoming. Director of Textiles, Leather and Footwear at the Ministry of Industry, Elis Masitoh, said that after Lebaran, TPT also had the opportunity to continue its growth with the momentum of the new school year and the start of 100 percent face-to-face learning activities.
"Actually, growth in the first quarter has not yet come out, but by looking at the increasing export conditions, the start of community activities and the moment of preparation for Eid, our growth projection is 3.5 percent until the second quarter of 2022," said Elis, Thursday (21/4/2022). ).
Meanwhile, year-on-year (YoY) growth in the first quarter of 2022 is projected to be 2.94 percent, followed by 4.12 percent in the second quarter. Meanwhile, quarter-to-quarter growth in the second quarter of 2022 is estimated at 1.63 percent.
It is known, throughout last year, the textile and apparel industry recorded a contraction of 4.08 percent year-on-year (YoY). However, in the fourth quarter of 2021, the performance of this sector has been controlled with growth of 5.94 percent
"In May-June there is still a new school year with a 100 percent face-to-face policy," continued Elis.
Meanwhile, positive sentiment in the domestic market with various import security devices is believed to strengthen the competitiveness of business actors. One of them is in facing competition with D8 countries which has been regulated in the Preferential Trade Agreement (PTA).
Recently, the government issued a tariff setting for PTA import duties among D80 countries through Minister of Finance Regulation (PMK) No.57/2022.
Elis said that the import duty tariff arrangement had actually been in effect since 2011. The new regulation is a revision with the entry into force of the 2022 Indonesian Customs Tariff Book (BTKI).
"After researching that for TPT, there are only 4 HS Code of fabrics. So it was anticipated from the beginning that TPT commodities from our competitor countries in D8 such as Bangladesh, Pakistan, Turkey and Nigeria were anticipated," he said.
