The Indonesian Textile Association (API) proposes two policies that at least can boost the performance of the textile industry and textile products or TPT in the current economic recovery period.
Chairperson of the Indonesian Textile Association (API) Jemmy Kartiwa Sastraatmaja said that the empowerment of the textile industry needs to be done in collaboration between the government and all stakeholders. Meanwhile, there are two policy steps that can be taken, namely the optimization of IKM performance and the use of Non-Tariff Measures (NTMs).
In order to empower and digitize Small and Medium Industries (IKM) through synergies between the government, banking institutions and industry players.
"The profile of the domestic garment industry consists of two categories, namely large industries which are export market-oriented and the majority are in bonded areas. Then the majority filling in textiles for the domestic community is LKM," he said.
According to Jemmy, the domestic market is the market portion for IKM. To increase the competitiveness of IKM in dealing with imported goods in the domestic market, innovation is needed to empower IKM, so that it is more accessible to the public as well as administrative order and tax compliance through the IKM digitization system.
In this case, the government has a policy role and responsibility to empower the community's economy, facilitate the provision of controlled working capital, and increase compliance with taxation.
Meanwhile, banking plays a role in providing targeted working capital and releasing IKM from the trap of loan sharks, so that it becomes bankable and provides easy access to financing.
"Large industries have a role in absorbing domestic production and seeking to increase the competitiveness of Indonesian textile products at home and abroad. Not only that, IKM players are ready to develop more and order administration and taxation," he said.
Then, Jemmy continued to empower the second domestic textile industry, namely optimizing the use of NTMs. Related to this, as an effort to protect the economy and industry.
A number of countries currently implementing trade remedies policies include India, Turkey and the United States. The reason is, Indonesia faces many accusations of anti-dumping from these countries which then become a new obstacle for national textile exports.
"In this context, Indonesia can also take steps in the framework of protecting the domestic market, namely through the implementation of NTMs policies in accordance with the provisions of the WTO. For example, the Sanitary and Phytosanitary Measures (SP5) method for imported goods in order to comply with SNI standards applicable in Indonesia. This is like the provisions that apply to locally produced goods circulating in the territory of Indonesia, "he said.