Indonesia's textile imports surge, local industry is restricted
The Indonesian Textile Federation stated that in 2007, Indonesia's legal and illegal textile imports increased by 72.55% and 69.35% respectively, occupying the domestic textile market share. Sudrisno, president of the association, called the situation worrying. Data from the Central Bureau of Statistics show that textile imports in 2007 increased from 51,000 tons to 88,000 tons. In addition, the Textile Federation stated that illegal imports increased from 509,000 tons to 862,000 tons, with an import value of US$4.74 billion, a record high in the past five years. The total textile imports in 2007 were 950,000 tons, which had an impact on the domestic market share. After integrating the three data from the Central Bureau of Statistics, the Ministry of Industry and Trade and the Central Bank, the Federation stated that textile sales in 2007 fell from 456,000 tons in the previous year to 270,000 tons, a drop of 42.9%. The Chairman believes that the decline in domestic market share is due to the failure of consumers and the government to fulfill their promises to use domestic products and the government's failure to effectively combat smuggling. Although the government has issued Presidential Resolution No. 80 in 2003 on the use of domestic products, imported products are still popular. Multi-party interests have made it impossible to reach agreement on the use of domestic products, and in fact all manufacturers from the federation can meet domestic demand. In 2007, domestic product sales were 1.97 billion U.S. dollars, while total sales were 6.71 billion U.S. dollars. The difference may be caused by illegal imports. To this end, the Federation urged the Ministry of Trade to persuade the Chinese government to restrict its garment exports to Indonesia or immediately adopt trade protection measures. If protective measures are taken, the Indonesian side must find out the crux of its industry.