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The Ministry of Trade is currently reviewing comprehensively the proposal from textile and textile product (TPT) industry players to close the import tap. Acting Director General of Foreign Trade at the Ministry of Trade, Veri Anggrijono, said that during the review, the government opened the opportunity to close the tap for TPT imports. "If imported goods interfere and the domestic industry can meet market demand, then the import faucet will be considered closed," said Veri, Wednesday (13/7/2022). The review, he continued, started with the association's proposal that companies holding API-U licenses in the textile industry not be granted a raw material import permit.

For your information, API-U is a license granted to companies so that they can carry out import activities for trading purposes.

However, he continued, the discussion of the proposal should also involve a number of technical ministries/agencies (K/L) for coordination before the decision is issued.

"We are ready to make the regulations, but we can't decide for ourselves," said Verim .

It should be noted that a number of technical ministries/agencies involved in the discussion, including the Ministry of Industry and Customs and Excise. Beyond that, the discussion will involve business actors.

Previously, General Chairperson of the Indonesian Filament Fiber and Yarn Association (APSyFI) Redma Gita Wirawasta said Trade Minister Zulkifli Hasan was committed to closing the tap of TPT imports after the discussion.

"Pak Zulkifli Hasan has committed to closing the import faucet," said Redma to Bisnis.

Furthermore, Redma explained that the closing of the imported faucets will likely be carried out partially in the textile industry. Because, he said, it would take a long time to change the applicable regulations.

It should be noted that the regulation in question is Permendag No. 25/2022 concerning Import Policies and Regulations, which is considered by Redma to be the main trigger for the domestic textile industry to be flooded again with imported products.

However, the trend of eroding market share of the national textile industry, which is dominated by export activities, is a classic problem and has been going on for the last 12 years.

According to Apsyfi data, the national textile trade balance surplus shrank sharply over the past 12 years from US$8 billion to around US$3.2 billion due to the impact of imported goods.

Recently, imported goods have again eroded the market share of national textile products, which hope to earn money from the start of the new school year. Redma said the market share of national textile products for the school uniform segment was eroded by more than half due to the proliferation of imported goods circulating in the country.

The turnover of the school uniform market in Indonesia is about 5 percent of the national textile consumption in 1 year. With a product volume of about 100,000 tons. School uniform products began circulating in the market at the end of the second quarter of 2022 or before the start of the new semester in July 2022. Products began circulating in the market at the end of June 2022.