The Ministry Of Industry Admits That There Is An Imported Flood In The TPT Sector, Many Downstream Products Experience
JAKARTA - The Ministry of Industry (Kemenperin) recognizes that there is an import flood for domestic industries, especially in textile sub-sectors and textile products (TPT). This is reinforced by an industrial confidence index (IKI) for the sub-sector to be at the level of 49.74 points or experiencing contraction.
Head of the Public Relations Bureau of the Ministry of Industry, Alexandra Arri Cahyani, did not deny the increase in the volume of imports of significant textile products, especially imports of downstream textile products that exceed the needs of the domestic market. Thus, this condition can be said to be an import flood.
"The phenomenon of import flooding that has occurred recently has been experienced more in downstream products in the TPT industry, especially in the garment industry," said Alexandra in a written statement, Saturday, November 1.
According to Alexandra, the increase in imports occurred due to a number of factors, including a shift in global trade patterns, a decrease in international logistics costs and relaxation of import policies in several partner countries.
He said the impact of this condition was felt directly by domestic textile industry players, who faced pressure on selling prices and production absorption.
"This imported flood does put pressure, especially for upstream industries that have been supporting the supply of local threads and fabrics," he said.
Therefore, he said, the Ministry of Industry fully supports the statement of the Minister of Finance (Menkeu) Purbaya Yudhi Sadivewa who will eradicate the illegal textile import mafia.
"This step is certainly very positive and in line with the direction of President Prabowo Subianto to protect the domestic industry," he said.
Alexandra assessed that so far the Ministry of Industry has consistently run programs that focus on strengthening domestic industrial capacity through machine and equipment restructuring programs, increasing labor productivity and accelerating the implementation of domestic component levels (TKDN) in the TPT sector.
"We believe that this effort to control imports is in line with strengthening the structure of the national textile industry, so that our industry is able to compete in a healthy manner in the global and domestic markets," he said.
In the future, continued Alexandra, the handling of imported floods will be carried out proportionally and measurably, while maintaining the smooth running of raw materials for export-oriented user industries, such as garment and apparel.
"In principle, we do not close the flow of trade, but reorganize the mechanism so that raw materials remain available and local products remain protected. Our focus remains on maintaining the sustainability of the national industrial supply chain," he added.