Illegal textile imports hurt Indonesian textile companies

by:JIYALI     2021-08-18
The Indonesian Textile Association (API) stated that in view of the current illegal imports of textiles flooding the Indonesian domestic market, the association is urging the Indonesian government to propose measures to protect the country’s textile industry from illegal imports.  API President pointed out that the association recommended that the Indonesian government promulgate relevant regulations to allow foreign textiles and their finished products to be imported into the west and east sides of Indonesia through TanjungPriok Port in Jakarta and TanjungPerak Port in Surabaya respectively. It is reported that in 2007, the illegal import of textiles reached 862,000 tons. API hopes that through the implementation of relevant laws and regulations, illegal imports can be effectively curbed. The association also stated that after the implementation of the policy, it is impossible to completely eliminate the import of illegal textiles. Yes, but if it can achieve half of the suppression, it can be considered a success of the strategy. API also revealed that if the Indonesian government does not propose relevant strategies to combat illegal imports, it will force the domestic market-oriented Indonesian small and medium-sized textile and garment companies to face a crisis of bankruptcy. The survival of small and medium-sized enterprises is critical to the livelihood of the local labor population in Indonesia. As a result, Indonesia’s national tax revenue has fallen and the credit market’s bad debt rate has risen.   From January to March this year, Indonesia's textile and finished products imports totaled 721,000 tons, valued at 1.2 billion U.S. dollars, and exports during the same period reached 475,000 tons, valued at 2.6 billion U.S. dollars. In 2007, Indonesia's domestic textile and its finished products demand increased by 20.43% to 1.22 million tons, but Indonesia's domestic textile and its manufactured products sales fell by 42.98% to 260,000 tons.   In addition, API also requires the Indonesian government to increase import tariffs on textiles and clothing from 15% to 25%.  According to relevant media reports, relevant officials of the Indonesian Ministry of Trade stated that the Indonesian government has formulated measures to protect the domestic textile market in Indonesia. Such measures will reduce the costs of Indonesian enterprises, and the Indonesian government plans to build special economic zones for the textile industry.
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