Ahead of the Idul Fitri momentum, the optimism of textile business players actually decreased due to a number of factors. Chairperson of the Indonesian Fiber, Yarn and Filament Association (APSyFI) Redma Gita Wirawasta said that illegally imported goods were observed to enjoy the legitimation of the Lebaran market in the country, especially those that entered through the marketplace. It is suspected that these goods are illegal because the price is much cheaper and there is no Indonesian National Standard (SNI) label. Meanwhile, for import control, the government has issued a number of import duty regulations for security measures (BMTP) or safeguards.
"Yesterday we were very optimistic, but when we saw that there were still [illegal imports] goods coming in like that, we were a little worried. Hopefully [domestic products] can be fully absorbed by the market," he said, Thursday (21/4). /2022).
He projects that the textile and textile product (TPT) industry can achieve growth of above 3 percent in the first semester of 2022. Meanwhile, in the first quarter of 2022, the growth rate should be above 5 percent, if illegal imports can be controlled.
Redma continued that sales spikes on the momentum of Eid will be determined in the next two weeks. Since the beginning of this year, he continued, upstream raw material producers have produced abundant quantities, which have been absorbed by textile producers and small and medium-sized garment industries (IKM).
"If retail can absorb, I think the growth could be around 5 percent [in the first quarter of 2022]," he said.
In addition to the entry of illegal imported goods, which also erodes the optimism of entrepreneurs, namely the Eid holiday which is considered too long so that it will have an impact on the productivity of manufacturers.
Redma said, with a 10-day long holiday and the closure of essential sector operations, export performance will certainly be disrupted.
"Then our production will also decrease. So that's what makes us a bit pessimistic in the second quarter," he said.
