The textile or garment industry in DIY is currently relying on the domestic or local market. For this reason, the government is asked to protect the local market in the midst of uncertain global conditions that have suppressed the export market. Including the plan to increase the price of fuel oil (BBM) which is certain to hit and burden both business actors and the community themselves. Chairman of the Provincial Governing Body (BPP) of the Indonesian Textile Association (API) DIY Iwan Susanto said the domestic market for the garment industry in DIY was very good and excited after the Eid al-Fitr momentum.

But unfortunately, the garment industry in DIY is still overshadowed by global conditions which affect the export market which is very bad, aka declining.

“As President Joko Widodo said, we will face challenging times, automatically rising fuel prices cannot be avoided. The government must take bitter steps, but indeed we the business world must be prepared because people's purchasing power has decreased, while the market is actually excited," he said in Yogyakarta, Monday (29/8/2022).

Iwan said that Indonesia itself compared to other countries is quite good, it just needs to be maintained and maintained in the future. On the other hand, business players remain optimistic but still have to be careful because the global impact will be extraordinary this time, especially on the export market, which begins to decline until orders are canceled.

“The government must maintain the domestic market for the textile industry at this time, especially in the run-up to the democratic party or general election, which is usually enough to raise demand. So the domestic market must be maintained because many other countries are trying to enter Indonesia. In fact, many imports are now entering and flooding Indonesia," he said.
According to Iwan, although the domestic market is still in good condition and the opportunities are also quite good at the moment, the challenge is global conditions. Stocks from affected countries will certainly be huge, so the government must really maintain this consistently otherwise all industries can be destroyed as well.

“As is well known Bangladesh is the second largest exporter after China and the majority must go to America and Europe. They want as many as 162 HS garments to be opened, if this happens it must be observed, especially the illegal ones. Both will have a tremendous impact on us,” he said.

Furthermore, Iwan said that business actors who could not afford it ended up changing professions. For that, the government must step in and take care of everything because export problems are complex and the domestic market needs to be really considered. The association itself sees that Indonesia has a strong opportunity to develop the textile industry so that it must be mapped for the textile industry in DIY and exports that rely on 80-90% of imported raw materials must be slowly replaced with local production.

In addition, foreign investment also seems to have entered. However, he hopes that there will be a transfer of knowledge with local entrepreneurs. “This is what the government must pay attention to, so that local entrepreneurs can develop according to their competence and not be pushed aside by foreign entrepreneurs. If the government can provide a breakthrough for compensation from rising fuel prices such as ease of doing business and so on. But unfortunately the conditions are quite complicated, so everyone must remain vigilant and tighten their belts in order to survive,” he concluded.