Indonesia's textile industry is still quite challenging in line with the rise of imports of textile products in the domestic market. An investigation was also carried out by the Indonesian Trade Security Committee (KPPI) at the request of the Indonesian Textile Association (API). KPPI chairman Mardjoko confirmed that some time ago his party received an official letter regarding the request for an investigation into the extension of the imposition of trade security measures (safeguards) on imports of yarn, fabric, and curtain products submitted by the Indonesian Textile Association (API) as representatives of the producers of the three products.
In accordance with Government Regulation No. 34 of 2011 and the provisions of the Agreement on Safeguards – World Trade Organization (AOS – WTO), every request for an investigation to extend the imposition of safeguards must meet several conditions
Among these are a surge in the number of imports, the occurrence of serious losses or the threat of serious losses, as well as a causal relationship between the surge in imports and the potential for serious losses.
In previous news, from the initial evidence submitted by the API, KPPI found the fact that there was a surge in imports of curtain products including curtains, inner blinds, bed mosquito nets, and other furniture items. In addition, there is a serious loss or threat of serious harm suffered by the applicant.
Based on records from the Central Statistics Agency (BPS), during 2019-2021 there has actually been a decline in imports of curtain goods including curtains, inner blinds, bed nets, and other furniture items by 53.62%. However, in 2020-2021, there was an increase in the number of imports of the same product by 4.10%.
Imported goods such as curtains including curtains, inner blinds, bed mosquito nets, and other furniture items came from several countries such as China, India, Poland, and Taiwan. The biggest curtain imports came from China with an import share in 2021 of 72.85%, India 11.12%, Poland 3.69%, and Taiwan 3.43%.
Because the API application has met the requirements, starting April 18, KPPI has initiated an investigation into the extension of the safeguard. Then, KPPI has also notified the start of the investigation to the WTO Safeguard Secretariat for circulation to all its member countries.
"After that, KPPI will provide opportunities for all interested parties, both at home and abroad, to submit responses and inputs to this investigation in a public hearing," explained Mardjoko, Sunday (8/5).
If the final result of the investigation proves that there is a surge in imports of textile products leading to serious losses and the threat of serious loss by the applicant, then KPPI will recommend extending the imposition of Safeguard Measures Import Duty (BMTP) on imports of these products.
The extension of the imposition of the BMTP applies to imports of yarn, fabric and curtain products as in the previous period which in total includes more than 120 8-digit Harmonized System (HS) numbers.
Although reluctant to be named, a source at the Indonesian Textile Association (API) also admitted that the investigation stage of the safeguard extension of a number of textile products is still ongoing. The extension of the safeguard is needed considering that the import of textile products is still soaring with quite complicated causes.
One of them is the difference in the price of imported goods, which is still quite large due to the weakening of the European market in the midst of the Russia-Ukraine conflict. As a result. Indonesia is the export target of textile producers with large production capacities such as China.
"Beyond the existing safeguard regulations, import regulations from the Ministry of Trade for textile products are still relatively weak and easy to import," said the Indonesian Textile Association, Sunday (8/5).
API also basically wants textile products that can actually be produced domestically to be optimized for sales, rather than importing them. This is so that all textile business actors, especially those from MSMEs, have the opportunity to grow in this sector.a