Since the last 10 years, the textile and textile product (TPT) industry has experienced tremendous pressure due to trade regulations that are pro-import. The textile industry has experienced a decline in utilization, lack of investment, a flood of imported products, and stagnation in exports. This combination caused several textile industries to go bankrupt which resulted in layoffs in the last 3 years.
The Covid-19 pandemic has also exacerbated conditions where industrial utilization has fallen by only 30%. In solving these problems the Indonesian Textile Association (API), the Association of Indonesian Fiber and Filament Yarn Producers (APSyFI), and the Indonesian Association of Textile Experts (IKATSI) have a vision to restore the glory of the national textile industry through control of the domestic market, encouraging investment. and increasing exports ”, this was conveyed by the Chairmen of the Association in a Joint Statement at a virtual press conference at the BPNAPI Jakarta Secretariat on Thursday 14 January 2021. Apart from the General Chairmen of the three associations, this press conference was also attended by the Secretary General of APSyFI Redma Gita Wirawasta; BPPAPI Fiber and Filament Committee Basrie Kamba; API Executive Secretary Rizal Tanzil; and Executive Director of IKATSI Riza.
"Our textile industry is an integrated industry, but it has not moved in the last five years," said the Chairman of APSyFI, V. Ravi Shankar, "for this reason APSyFI and API are working together to solve these problems and submit joint proposals to the Government for the benefit of industrial revitalization. textiles. Our integrated textile industry has been developed for 30 years, and if this integrated textile industry runs properly and imports can be handled, then this industry can move and utilization can increase again, ”said Ravi. Furthermore, Ravi said, "with this cooperation we can rise again and be able to increase exports so that we can contribute to providing greater foreign exchange, with increasing consumption, we have a great opportunity. Especially in the upstream sector, we have quite a lot of raw materials, namely polyester and rayon. When domestic consumption increases, we need to increase investment, and when the industry can extend investment will increase and industrial growth will increase, ”added Ravi.
Meanwhile, the General Chairperson of API, Jemmy Kartiwa Sastraatmaja said that "we, API and APSyFI were recently received by the Minister of Industry, and in the meeting we explained the current condition of the textile industry at length and at the same time provided some input, and we received a sufficient response. good from him, ”said Jemmy. "As for what we have asked the government through the Minister of Industry is about vaccines, we are asking for vaccine quotas for industrial workers because they are very productive people so that later they can continue to support the industry and can help economic recovery. And we hope we will get the vaccine in March, ”said Jemmy. Meanwhile, for 9 points which became a joint statement, it was delivered by Redma.
Here are 9 points of statement from the three associations:
1. In order to strengthen the upstream and downstream integration in the textile industry through the use of domestic raw materials and increase the level of domestic content throughout the value chain to support the Ministry of Industry's target of 35% import substitution.
2. Asking ministries and other government agencies to support the President's target and vision to reduce unnecessary imports and prioritize the use of raw materials and goods that are already produced domestically.
3. That the revised Minister of Trade Regulation No. 77 of 2019 concerning Provisions for the Import of Textiles and Textile Products not to grant API-U permits, not to import textile products through Bonded Logistics Centers (PLB) and Warehouse Bonded Zones.
4. Legally processing hundreds of fake API-P companies and API-U violators who have flooded the market with imported products that have damaged the national textile industry by thus hindering investment.
5. Immediately implement a safeguard in the garment sector with a sufficient amount of import duty to stem imports and restore injury-hit industrial conditions from a flood of imports.
6. Encourage the imposition of further Trade Remedies that will be submitted in 2021.
7. Evaluating trade agreements that have been made can provide benefits to the manufacturing industry sector, especially the textile sector. The formation of trade agreements must be carried out carefully and have a significant impact on the economy with a larger trade balance surplus indicator.
8. Regarding unprocedural imports through wholesale imports, under name, under invoice (price and volume), transhipment and HS escapes, we ask for reform and improvement of the Directorate General of Customs and Excise, Ministry of Finance of the Republic of Indonesia. We also support the legal process for violations currently being investigated by the Indonesian Attorney General's Office (Batam and East Java cases), the ongoing legal process can be expanded to investigate companies that do the same thing because this mode is massive and carried out by hundreds of textile and logistics importing companies. .
9. In order to accommodate our suggestions and input regarding the draft Government Regulation on the Implementation of Law no. 11 of 2020 concerning Job Creation in the Industry and Trade Sector. Our proposal is basically proposing a change in the mind-set from a policy that always provides facilities for importation to a policy that provides convenience and facilities for the development of domestic industries. We have submitted the same proposal to other Draft Government Regulations related to the environment and manpower sector.
Regarding policies that can boost short-term and long-term performance, Redma said that "at the beginning of 2021, the Ministry of Industry has started to suppress imports, and we see that import permits have begun to be addressed, for API-P is not good, for example now it is very high. it is difficult to get an import permit, now, when the Ministry of Industry has done this, there will be additional in the local market, and if this tightening can be maintained then this will be good for the textile industry going forward, and this is also a policy that can encourage and open the opportunity for the national textile industry to get a market opportunity at the moment of Eid, thus the upstream and downstream industries will benefit from this Eid moment, "said Redma.