The export performance of yarn and fiber products this year is not expected to experience significant improvement. It is said that anti-dumping policies in a number of export destination countries will still be the main cause. In the Ministry of Trade's report entitled Indonesian Trade Outlook 2021, it is illustrated that the export performance for yarn and fiber has decreased by 30.48 percent annually in 2020.
Secretary General of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI) Redma Wirawasta said the country's fiber and yarn products would still face anti-dumping policies from a number of countries, including the United States, Turkey, Brazil, India and the European Union.
"For exports, the world is less supportive because many countries are protecting them. Until now, protection is still rampant in order to restore the economy in each country first, "said Redma.
In addition, he continued, this year it will be a little difficult for the fiber and yarn industry to rely on the export market, which only accounts for 30 percent of total production.
With the current condition, continued Redma, the export portion for yarn and fiber products will only be around 10-15 percent due to decreased demand in the global market as well as greater domestic demand.
Meanwhile, the potential export destination countries were not promising enough this year.
This is because in maximizing potential countries such as Japan, Turkey, India and the European Union, Indonesia's fiber and yarn exports still have to deal with anti-dumping policies.
"This means, to increase the trade balance, import substitution must be made. So, in 2021 the local market will absorb more than exports. As a result, the balance sheet will be more positive. Thus, this year we will not focus on exports, "he said.