The impact of the weakening of the rupiah against the United States (US) dollar on the textile and textile product (TPT) industry did not attract much attention from the Indonesian Textile Association (API). Head of API Jemmy Kartiwa Sastraatmaja admitted that he was more worried about the weakening of Indonesian people's purchasing power and the threat of imported products coming in line with inflation in the United States and European Union countries. “What we are worried about is the weakening of Indonesian people's purchasing power and the swift import of products that attack the Indonesian market. Indonesian people's purchasing power is still better than other countries," said Jemmy, Monday (25/7).
Jemmy admitted that purchases of several textile raw materials, such as paraxylene (PX), purified terephthalic acid (PTA), to polyester fiber, and others were made in US dollars, although some products such as polyester and viscose fibers have been produced domestically. .
As a result, the cost of these raw materials is also influenced by the exchange rate of the rupiah against the United States (US) dollar.
Therefore, according to Jemmy, the stability of the rupiah exchange rate is also important for business actors. However, according to Jemmy, the weakening of the rupiah was offset by the decline in the price of crude oil, so that the effect of the weakening of the rupiah was not felt too much in the textile industry.
Just so you know, some TPT raw materials are derivative products from crude oil. So, the price is also influenced by the movement of crude oil prices.
On the other hand, inflation that hit the United States and European Union countries poses a separate threat to the textile industry players.
According to Jemmy, in the midst of these conditions, textile exporting countries such as China, Bangladesh and Vietnam have the potential to sell their products to countries with weak non-tariff barriers. Indonesia is also not spared from this threat.
Therefore, Jemmy hopes that the government can take steps to limit the flow of TPT imports to Indonesia.
"One of them is by extending the safeguard," said Jemmy.
In line with API, the textile industry association in the upstream chain, namely the Association of Indonesian Filament Fiber and Yarn Producers (APSyFI) also considers that the mastery of the domestic textile market is important in the midst of global economic pressures and inflation that hit the US and European Union countries.
"In the midst of global economic pressures and inflation in the US and the EU (European Union), the export market will be full of challenges and obstacles, so the domestic market is very much needed so that this sector can continue to operate," said APSyFI Chairman Redma Gita Wirawasta.
According to Redma, the government's policies regarding imports are already on track. However, he complained about illegal imports which, according to him, are re-emerging.
"Wholesale, under invoices, and HS (harmonized code) flight are starting to bloom again," said Redma.