Indonesian imports of textiles invade market share
The Indonesian Textile Federation recently 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. 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. According to data from the Indonesian Central Bureau of Statistics, textile imports in 2007 increased from 51,000 tons to 88,000 tons. The Federation said after integrating the three data from the Central Bureau of Statistics, the Ministry of Industry and Trade and the Central Bank, that in 2007, domestic textile sales fell from 456,000 tons in the previous year to 270,000 tons, a drop of 42.9%. The chairman of the federation believes that the main reason for the decline in domestic market share is that consumers and the government have not fulfilled their commitments to use domestic products and that the government has failed 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 in Indonesia were US$1.97 billion, while total sales were US$6.71 billion. The difference is mainly 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.