The Indonesian textile and textile product (TPT) industry players urge the government to optimize the domestic market in anticipation of the impact of the US economic recession. Chairman of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta said that optimizing the domestic market is very possible because domestic purchasing power and demand are safe. "Domestic demand is not a problem. Purchasing power is also not a problem. National inflation is still under control," said Redma, Sunday (31/7/2022).
According to him, what the government needs to do more seriously is to ensure that the domestic textile industry is safe from attacks by imported and illegal products.
These two problems are considered to be the most frightening specter for the domestic textile industry players who are also burdened by the problem of high raw material prices.
Apsify noted that the average number of illegal garment products entering Indonesia was 300,000 tons per year. This amount is equivalent to about 15 percent of Indonesian people's garment consumption.
Currently, continued Redma, the total national garment consumption is recorded at 1.8 million tons per year.
In addition, the government is also urged to close the tap on imports of textiles and textile products which were opened in the second quarter of 2022. Currently, he continued, Indonesia has been burdened with a 0 percent tariff on garment imports from Thailand.
In addition, other giant textile exporting countries such as Bangladesh have also been freed from the safeguard rules, although they are still subject to an import tariff of 15 percent for their products.