Economists believe that global inflation experienced by the main markets for the textile and textile product (TPT) industry such as the United States and Europe will increase the prices of domestically made products in the domestic market. According to the Executive Director of CORE Indonesia, Mohammad Faisal, the inflationary pressures experienced by the two countries will reduce the level of demand for the Indonesian textile product market. "Assuming production costs are affected, domestic textile products have the potential to be sold at high prices," said Faisal, Monday (4/7/2022).
However, Faisal assessed that the price increase was a better option compared to the many low-priced but imported textile products.
In addition, Kepmenkeu No. 23/2022 concerning Limits on Goods Restricted to Import which attaches a wide variety of textile materials to be a secret weapon for textile industry players to continue accelerating recovery.
"Because, at least textile products that are sold at high prices are original domestic products. So it is healthy for the ecosystem of the Indonesian textile industry," he explained.
On the other hand, Indonesian textile industry players have also been able to guarantee the availability of supply goods from upstream to downstream.
With capacity utilization at the level of 70 - 75 percent, plus there is still room to add industrial products, the supply chain for the Indonesian textile sector is able to provide optimal work results.