During this 1 year, small and medium industries (IKM) have struggled to save themselves from the COVID-19 pandemic storm. Now they are also faced with an uncertain situation.
The Indonesian Small and Medium Industry Entrepreneurs Association (APIKMI) sees IKM actors, especially in the garment or convection sector, facing an increasingly uncertain situation. They face a scarcity of raw materials, which so far have been mostly supplied by imported raw materials as well as raw materials produced by the local textile and textile products industry.
However, safeguards are contained in the Minister of Finance Regulation (PMK) No.161 / PMK 010/2019, PMK No.162 / PMK. 010/2019 and PMK No.163 / PMK.010 / 2019 related to the imposition of Temporary Safeguard Measures (BMTPS) / Safeguards Import Duty on textile imports in November 2019 which has clearly resulted in the scarcity of imported raw materials in the domestic market. Meanwhile, the production capacity of the local textile industry is currently decreasing significantly and cannot meet the demand in the domestic market.
Furthermore, the second thing that made it difficult for garment SMIs was the onslaught of imported finished goods from China and Thailand, which are currently very large and very easy to obtain in the domestic market.
So far, garment IKM players feel that their products cannot compete with imported finished goods that have not been subject to additional import duties such as imported raw materials, plus many parties have switched to importing finished goods because they are considered easier and more economical than producing domestically. alone.
"The garment IKM players represented by APIKMI asked for an explanation from the Government in particular, the Ministry of Trade and the Ministry of Industry, regarding if the raw material is subject to a security import duty but imported garment finished goods are not enforced, what are the considerations? Because business will be more profitable for imports. finished goods and can directly kill the garment IKM industry, "said APIKMI Secretary General Widia Erlangga.
He gave an example, the import of veils / scrafts increased so high from 2017 to 2019. If it is accumulated in total, Indonesia receives imports of veils / scrafts from 5 countries China, Turkey, Malaysia, India and Pakistan, which amount to 8.6 million kg or as many as 84.1 million pcs in 2017. Then in 2018 it increased to 12 , 9 million kg or as many as 125.2 million pcs, then in 2019 the amount of 10.9 million kg or as many as 105.6 million Pcs.
This shows that in the last three years there has been an increase in the value of imports of finished goods in the form of the scarf. According to him, this evidence is proof that the safeguard for garment products must be realized immediately. Because it can be seen that the number of imports entering Indonesia only for goods made of headscarves / scarves, the numbers are so large.
Meanwhile, referring to the description of the production capacity of the headscarf IKM in Cicalengka, the average is capable of producing 2,000 kodi or 40,000 pcs of scarf per month per IKM. So if calculated with the total number of Cicalengka scarf IKM as many as 500 IKM practitioners in the area, the headscarf IKM actors in Cicalengka are able to produce as many as 240 million pcs of veils per year. At least it can represent most of the need for headscarves in the domestic market which is currently still dominated by imported headscarves.
APIKMI hopes that the production process of garment / convection IKM players will return to stability and the selling price offered to consumers will remain competitive. The government must act quickly, to issue a safeguard policy for imported finished goods, so that the current situation does not become a gap by a handful of parties who take advantage of the situation. This policy can relieve IKM players in the convection sector or garment and local products, both from IKM players and domestic industries, can be excellent in the domestic market of their own country.